Thousands more switch away from TSB after IT meltdown - MSE News

Former_MSE_Megan_F · 30 January 2019 at 12:21PM

More than 18,000 TSB customers switched away from the bank between July and September last year following its IT problems earlier in 2018 - adding to the 21,790 who moved away between April and June...

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'Thousands more switch away from TSB after IT meltdown'

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minislim · 30 January 2019 at 12:55PM

i don't really know why people have flocked away from tsb.
yes they have had several glitches. but most have been rectified quickly. any charges have been covered. generous compensation has been awarded and current account interest rates raised too.
i'm happy with them and i'm glad i've stayed too.

Brewer20 · 30 January 2019 at 1:04PM

Same here, 3 accounts between me and the missus, the money is still there, we get interest and TBH haven't had cause to complain. Having said that we just use the accounts for the interest not everyday banking.

eskbanker · 30 January 2019 at 1:06PM

minislim wrote: »

i don't really know why people have flocked away from tsb.
yes they have had several glitches. but most have been rectified quickly. any charges have been covered. generous compensation has been awarded and current account interest rates raised too.
i'm happy with them and i'm glad i've stayed too.

Obviously people can only really post about their own experiences and clearly you haven't suffered too badly, but the fact remains that for many people it was a big problem.

There were plenty of threads stuffed with war stories at the time so your experience may not be typical but it is perhaps relevant to observe that 18,022 CASS leavers is a drop in the ocean from their multi-million current account base, so to say that they've 'flocked' away is a bit of an exaggeration....

Edit: as MSE concedes, this quarter's departures are significantly down from the previous quarter, but neither is massively out of step with what went before, as I pointed out last time:

eskbanker wrote: »

As ever, statistics can be portrayed in many different ways to make different points!

21,790 customers switching away during Q2 could be seen as a damning indictment of their well-publicised failings, but put in the context of the overall trend, the figures for the two previous quarters were 14,549 (Q4) and 16,435 (Q1), so 21,790 isn't the business-threatening apocalyptic disaster that some anticipated but arguably just a continuation of what had gone before, as is the declining number of inbound switches.

Also worth considering the overall context of their current account base, where, in their 2017 annual report, they claim 4.6% market share of a total which is (separately) estimated at circa 70m. In other words, they must have over 3m current accounts, and so 21,790 is significantly less than 1% choosing to switch away - I think many would have expected much worse, given the tone of the coverage on here and in the wider media....

And before anyone starts with any nonsense, no, I don't work for them and am not defending them, etc, but just observing that there are (at least) two sides to every story!

badger09 · 30 January 2019 at 1:58PM

In fact the headline could easily have been 'Fewer customers switch from TSB after it solved most of its IT problems and compensated most of those affected'

But that wouldn't be as eye catching would it:cool:

polymaff · 30 January 2019 at 4:24PM

Just to be fair to MSE's Callum Mason, this is a relatively well-written article. None of the hype, the untruths and the over-the-top sensationalism that we expect - and regularly get - from MSE editorials.

Credit where credit's due.

stehouk · 30 January 2019 at 4:43PM

I wonder how many will remember the problems they had if they offer an incentive to switch to them, i bet they'll all flock back in the 1000s

colsten · 30 January 2019 at 6:42PM

minislim wrote: »

i don't really know why people have flocked away from tsb.
yes they have had several glitches. but most have been rectified quickly. any charges have been covered. generous compensation has been awarded and current account interest rates raised too.
i'm happy with them and i'm glad i've stayed too.

I have a lot of sympathy for many of those who did switch away. If TSB was my only account, used for day-to-day spending, I most probably wouldn't have stayed with them myself, either. Mind you, this is a massively hypothetical situation, as I would would have stopped years ago to rely on just one bank. Too many of them had too many problems by now to think that any of them would be immune to prolonged outages.

As it is, I have kept my TSB accounts as I only use them as a savings vehicle. I would also be happy to recommend TSB for that purpose, and for that purpose only.

Robisere · 30 January 2019 at 7:05PM

I stayed, but admittedly had very few problems. I also waited for two weeks then went to the local branch, where my limited problems were solved quickly. Our local branch has friendly, efficient and welcoming staff. All good and the internet side is great, but the 5% on our Classic account and Monthly Saver is the best part. I can switch money from the MSaver to an ISA account with another bank that pays more interest than TSB's ISA. Once both TSB accounts reach £150 and interest is no longer paid at 5%, I switch money to the other bank's ISA.
Works for me.

YorkshireBoy · 30 January 2019 at 7:21PM

Robisere wrote: »

...the 5% on our Classic account and Monthly Saver is the best part.

It's been a good while since the TSB Monthly Saver paid 5% AER. In my case the last 5% one ended in June 2016, nearly 3 years ago.

stehouk · 30 January 2019 at 9:34PM

TSB monthly saver is "2% not 5%

Thousands more switch away from TSB after IT meltdown - MSE News

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