TSB has announced a new IT center in Edinburgh to promote digital banking as part of an investment of £ 120 million, creating 100 technology jobs.
The move is part of a three-year plan announced following the bank’s IT meltdown in 2018 and will serve its five million customers.
Edinburgh-based TSB said the investment was to move the bank forward.
The center will open in April and will host IT specialists, data engineers and analysts.
TSB also announced a partnership with the IT giant IBM to manage its major banking platforms, including ATMs, digital banking and branch systems.
Almost two million bank customers lost access to online banking services in April 2018, after the confused introduction of a new IT system.
Robin Bulloch, TSB’s director of banking for clients, said of the new investment: “I am deeply sorry for the problems and inconveniences caused by our IT migration, but it is about moving the business forward.”
Bulloch told BBC Radio’s Good Morning Scotland program that the bank’s new IT specialists would rely on the “very strong banking platform” that TSB had received from its Spanish owner Banco Sabadell.
He said that customers wanted a better online banking service and that the new TSB digital services developed in Edinburgh would help customers save money and budgets, as well as be able to review their balances and transfer money.
Bulloch added: “IBM is a large-scale IT provider and we are very confident that they will help us support the construction of our proposals and ensure the constant stability of our banking platform.”
Half of all TSB products purchased by customers are now purchased online, with the bank expecting an 80% increase.
This happens when other UK banks, such as RBS, Virgin Money Lloyds and Barclays, rush to upgrade their digital services.
Bulloch said: “We have not seen too many customers let those difficult times pass and we are always grateful for the loyalty of our customers, but we want to make sure we are a bank that also appeals to new customers.”
The new investment was welcomed by Tracy Black, director of the CBI Scotland business group, who added: “In order for Scotland to overcome its international weight and attract major investments abroad, we must send a clear signal that we are not only open for business but building an economy for the future.
“TSB’s significant investment represents an important step in that direction.”
TSB’s digital investment comes when the bank also carries out its previously announced plan to close its branches, with 17 stores closing this year in Scotland.
“We are seeing fewer and fewer steps in our branches,” said Bulloch.
“It is one of the most difficult decisions I have to make.
“What we are seeing is more and more customers going online and for those customers who will be affected by the branches that are closing, we work closely with them to help them educate them on other ways of banking, such as telephone and online.”
Bulloch also said that the bank intends to offer “customers reasonably close” to a reasonably close TSB branch to interested customers, and that customers have been able to pay and withdraw money at post offices.
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