TSB Bank has announced the resignation of Paul Pester, who will be stepping down after seven years as chief executive following a significant IT failure earlier this year.
Pester’s departure comes in the wake of an IT crisis that left hundreds of thousands of TSB customers unable to access their bank accounts. The bank has acknowledged that there remains work to be done to fully stabilise its systems, although it claims significant improvements have been made since the IT migration.
According to TSB, the decision for Pester to step down was mutually agreed upon by the board and Pester himself, with the timing deemed appropriate for bringing in new leadership. Richard Meddings, who will assume the role of executive chairman, recognised Pester’s “enormous contribution” to the bank, attributing TSB’s standing as one of the UK’s strongest challenger banks to his passion and commitment. Meddings expressed gratitude on behalf of the board for Pester’s achievements, highlighting his role in enhancing competition within the UK retail banking sector.
Meddings detailed the bank’s immediate priorities following Pester’s departure. These goals include completing efforts to rectify issues for customers, ensuring the bank reaches full operational functionality—including the comprehensive availability of product services—and launching a leading business banking offer. Additionally, the search for a new CEO will be a primary focus moving forward.
Reflecting on his tenure, Pester described leading the bank as a “privilege,” acknowledging the challenges faced by TSB in recent months. He recounted the initial launch of TSB on 9 September 2013, noting the bank’s mission to introduce more competition into the UK banking landscape, which has been realised through the hard work and commitment of TSB partners. Despite recent difficulties, Pester expressed gratitude to his colleagues for their dedication and focus on resolving issues for customers.
The transition marks a pivotal moment for TSB as it seeks to overcome the IT debacle and continue its growth trajectory under new leadership.
TSB faces a critical period of transition as it addresses ongoing challenges while seeking to maintain and expand its position within the UK banking sector.