Paul Pester (pictured above) will leave the company following the IT issues it has faced this year.

The challenger bank posted losses in the first half of the year and saw around 26,000 customers switch their bank account away from it in Q2 2018.

However, more than 20,000 customers opened a new bank account or switched their account to TSB in the same period.

It will now initiate a full public search in order to appoint a new CEO.

Paul said: “The last few months have been challenging for everyone at TSB.

“However, I want to thank all my colleagues across TSB for their dedication and commitment during this period and for their focus on putting things right for TSB customers.

“I look forward to seeing the next stage of our bank’s history evolve."

Richard Meddings – the current non-executive chairman – will take on the role of executive chairman with immediate effect.

Richard commented: “On behalf of the TSB board, I want to thank Paul for everything he has achieved as CEO and pay tribute to the contribution he has made in bringing greater competition to the UK retail banking market.

"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.

“Paul and the board have therefore agreed that this is the right time to appoint a new CEO for TSB.

“Together with the executive committee, we have three immediate priorities: to complete the work of putting things right for customers; to enable the bank to achieve full functionality – including the availability of all product services and launch of a leading business banking offer; and appointing a CEO for the next chapter of TSB.”