Tesco completes bank migration from RBS

Tesco has completed its Tesco Bank migration process from a Royal Bank of Scotland (RBS) system to its own platforms.

The final phase of the migration involved moving millions of credit card accounts.

“We are pleased to confirm that the final phase of migration for Tesco Bank – transitioning all credit card accounts onto our own systems infrastructure – has been successfully completed.

“All 2.8 million accounts were migrated in May, with the increased planning, resource and focus given to the project through this important period paying off with minimal disruption to customers,” Tesco said in its Q1 interim management statement today.

Tesco Bank has been focused on a complex infrastructure and systems build for the last three years. As well as the credit card accounts, it migrated motor and household insurance, savings accounts and loans from the RBS system.

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The migration has not been easy, however. The bank, which is fully run by the supermarket giant but was until 2008 a joint venture with the RBS, locked out online customers for three days in June 2011 as it experienced serious problems moving RBS data onto its own systems.

The issues forced the bank to extend its migration deadline, which resulted in higher costs, the company said earlier this year, as the bank had to absorb double running costs during the period.

“The extended migration slowed down the progress of Tesco Bank and has contributed to overall revenues being slightly down compared to last year, exacerbated by a more competitive car insurance market,” Tesco said today.

Tesco Bank saw a 3.7 percent fall in sales during Q1, which was the period of 13 weeks ended 26 May 2012.