CYBG operations chief Debbie Crosbie becomes the new CEO of TSB after the bank’s IT meltdown

TSB has hired a banking veteran as its new chief executive, bringing its months-long search for the role to a close.

Debbie Crosbie will join the challenger bank from Clydesdale Yorkshire Banking Group (CYBG), ending her tenure of 20 years at the financial services firm where she currently resides as chief operating officer.

Rumoured candidates for the role had included Tesco Bank chief Gerry Mallon, and Virgin Money boss Jayne-Anne Gadhia.

She is set to join TSB in the new year, with a start date to be announced in due course. Crosbie will take over from chief executive Paul Pester, who was put on gardening leave in September in the wake of the lender's IT meltdown earlier this year.

TSB earlier insisted Pester was not a "fall guy" for the technology outage that began in April, impacting up to 1.9m people. More than 16,000 customers left the bank between April and June as a result.

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"When we began the search for a new CEO, we were looking for someone who shared our vision for TSB, who had a strong track record in financial services, and who would inspire TSB Partners to fulfil TSB’s true potential," said TSB executive chairman Richard Meddings.

"In an impressive field of candidates, Debbie stood out. With over two decades of experience, superb retail and SME banking expertise, and a genuinely open and engaging style of leadership, we have found an outstanding new CEO."

Meddings added that Crosbie's appointment is part of the bank's strategy towards "putting things right for customers" after the outages this year, which cost the bank at least £250m.

Crosbie said she was excited by the bank's potential, as it holds "all the right ingredients to be the leading challenger bank in the UK".