TSB re-launched
September 15, 2013 at 11:05 am
18 years ago TSB merged with Lloyds to become Lloyds TSB but last week saw the revival of TSB as a stand-alone bank, promising to bring back the concept of local banking to the high street. Clients have been advised that their money will only be lent to local people in the mortgage and loans market or to help small local businesses expand.
The revival follows the November 2009 European Commission ruling which aimed to make the UK banking sector more competitive. The disposal, known as Project Verde, encountered difficulties earlier this year when a proposed deal with the Co-op failed to come to fruition.
Lloyds Banking Group have transferred some 4.6 million customers to TSB although there was an option to remain with Lloyds if customers so wished. Only 4,000 have opted to do so.
TSB started 200 years ago in Scotland, set up by the Rev Duncan to serve the “hardworking” local community. The re-launched bank now has 631 branches and 8,500 staff.
Sadly for TSB and its customers there were teething troubles on day 1 of the launch when a computer glitch led to the website crashing. Not only were potential investors affected but existing customers were unable to access their accounts online. Fortunately the problems had been solved by lunchtime.
Kevin Mountford of Moneysupermarket.com sees the launch of the TSB as good news for consumers, particularly for savers since TSB has its own banking licence. This means that if investors have savings with Lloyds and with TSB they will be protected separately by the Financial Services Compensation Scheme.
