Paul Pester, CEO of TSB, has finally left the business after the bank’s customers suffered another long weekend of failing processes and systems. That he resigned today “with immediate effect” isn’t the most surprising aspect of the story, even after he grimly clung on for months after the initial failures in April.
The BBC report that 26,000 TSB customers (out of 4.5 million claimed on their LinkedIn page) closed their accounts as a result of the TSB’s botched project to change their banking systems.
I find it astonishing that nearly 199 in 200 customers chose to stay with the bank. It’s even more astonishing that 20,000 people have actively decided to become customers since April, making a net loss of just 6,000. At this rate TSB will have more customers by the end of 2018 than they had at the beginning.
On this basis, having a high-profile business failure looks like a recipe for success. British financial consumers, no matter how badly they’ve been treated, seem unlikely to change their allegiance. As it happens, it’s also the trait that the government are banking on to push through Brexit.