The boss of TSB has resigned from the troubled bank for his handling of a major IT failure which left almost 2mln customers locked out of their accounts for several weeks.
Since April, TSB has been hampered by a series of technology failures which are yet to be fully resolved following a botched IT ‘upgrade’.
On Monday, the bank was forced to apologise to customers who had once again faced disruption to their online banking services.
TSB’s customer service has also come in for heavy criticism, with almost half of its customers rating the bank as ‘poor’.
Pester has been at the helm for seven years and oversaw the separation of TSB from Lloyds and its subsequent takeover by Spanish giant Santander in 2015.
The 54-year-old has previously resisted calls to quit in the wake of the IT failings but has now agreed to step down.
Chairman Richard Meddings will take on the role of chief executive until a permanent successor is found.
“Although there is more to do to achieve full stability for customers, the bank's IT systems and services are much improved since the IT migration,” said Meddings.
“Paul and the board have therefore agreed that this is the right time to appoint a new CEO for TSB.”