The TSB meltdown is likely to drag into the weekend as customers who are unsure whether they have been paid vented their anger at the bank’s inability to resolve the IT crisis.

TSB customers continued to report several problems including wages failing to be paid into their accounts – and bills going unpaid as a result. Others said they had been turned away at tills after trying to use their debit cards in stores.

The Spanish-owned bank said on Friday that half of its 5 million customers were still unable to access their online accounts. Those that were able to log in experienced continued problems including access to other customers’ payees, missing standing orders, and in some cases, the wrong balance.

Business customers of TSB reported they had been unable to make the usual payroll run, meaning customers of other banks have also become affected. At one point on Friday afternoon, customers reported that the internal systems in some branches had also gone down.

TSB said on Thursday that staff were continuing to work on a resolution, but could give no indication when its systems would be back to normal. Its chief executive, Paul Pester, said he was “truly sorry” for the botched systems upgrade but no further information emerged from the bank.

Last Sunday’s attempt to migrate customers to a new database was due to save the bank’s owners, Sabadell, £100m a year. Now the bank faces having to pay out a similar amount in compensation to customers and potential fines by the Financial Conduct Authority, which has dispatched a team to monitor the situation.

Meanwhile, evidence emerged on Friday of the long-term damage the crisis will have on the TSB brand.

Customers have started using the account-switching service to move to rival banks. One switching site on Friday reported that traffic to its comparison site was twice its normal level.



Gareth Shaw, money expert at Which?, said: “If the bank is to restore the trust of its customers, it must be swift in responding to those affected and in providing compensation. Customers should note down every time they’re affected as evidence to ensure they receive what they’re due.”

Wes Streeting, a Labour MP on the Commons Treasury select committee, said TSB’s management needed to explain to parliament how the IT glitch occurred. “There can be no excuses for such a serious failure, but we need to understand what has gone so evidently badly wrong,” he said.