TSB has seen its customer base grow following investments in its digital services, including a revamped online presence and the appointment of a chief digital officer.
The bank has received criticism for its ‘dated’ website design since splitting from Lloyds Banking Group last year, while its re-launch was marred by an online banking outage on its first day of trading.
TSB has since overhauled its banking website and branch locator following feedback from customers, going live this summer with a responsive design platform optimised for mobile devices.
The bank has also appointed a chief digital officer (CDO) to oversee its ongoing investment in technology, with former director of digital at Lloyds and government Digital Advisory Board member, Ashley Machin, handed the role.
The bank claimed in its third quarter resutls that these and other investments have started to pay off, as it picked up one in ten new current accounts being opened in the UK, while profits increased 29 percent compared to the previous three months.
“While we have always been clear that we are on a five year journey to grow TSB and its returns, it’s great to see people right across Britain continuing to vote with their feet for TSB’s local banking model," said CEO Paul Pester.
TSB is set to spend heavily on IT in future, reportedly receiving £450 million to cover the costs of separating its IT systems from those owned by Lloyds. Since its launch onto the high street in September 2013, TSB has continued to use a ‘mirror image’ of Lloyds IT systems.
The Office of Fair Trading has previously warned that the continued reliance on Lloyds’ systems could hinder TSB’s ability to compete independently in the marketplace.