TSB chief executive Paul Pester has said he will reform the banking bonus culture to meet customer demands as he highlighted his desire to return to the principles of the bank's Scottish founding father.
The TSB brand returned to the high street yesterday as it was launched as a standalone bank by part-nationalised Lloyds TSB after a deal to sell what was known as the Project Verde portfolio to Co-operative Bank collapsed in April.
The bank will have the biggest impact in Scotland where 189 of its 631 branches are located. An operations and business banking call centre is based in Edinburgh.
In all, 650 of its 8500 employees will be in Scotland although its headquarters are in London in the same street as Lloyds itself.
Mr Pester said: "Banks have become slightly disconnected with the communities they were meant to be serving over the last 20 years."
He said that TSB would have named branch managers and would publish information about their lending to their local communities.
"Customers want to know what their money is being used for.
"They do not want it being used to fund investment banking, or to fund derivative trading, or to fund overseas speculation. They want to know every penny is being used to fuel the local economy," he said.
Mr Pester, a former chief executive of Virgin Money, insisted that TSB would have a different policy on bonuses to the established banks.
"I will be recommending a new approach to paying me and paying our senior executives," he said. "Customers want a change."
But Lloyds made it clear Mr Pester's autonomy will be limited until the company's flotation.
Lloyds's retail banking director Alison Brittain said: "I am still overseeing TSB. I would expect to keep doing that until the year-end."
At that point, Mr Pester will report to a TSB board, which is still being established. A chairman is expected to be appointed in October.
Until its flotation, TSB will also be tied into group targets such as lending levels, in a similar manner to other Lloyds brands such as Bank of Scotland and Halifax.
But Ms Brittain maintained that Lloyds would seek to make TSB a success to boost its flotation price. She said: "Not to do so, that would be like putting a kitchen in your house to sell it. If you put in a rubbish kitchen, the surveyor is going to spot it."
Only a few thousand of TSB's 4.6 million customers have asked to switch to Lloyds so far, the bank said.
Lloyds was ordered to sell the branches by European regulators as a penalty for receiving a £45.5 billion government bailout in 2008.
Ms Britain said "no more than a preliminary conversation has been had" between Lloyds and the European Commission over its request to delay the sale which was due by the end of November.
A prospectus for the TSB flotation will be issued in April followed by flotation in June.
TSB has its roots in the trustee savings bank movement that was founded in Dumfriesshire in the early 19th century.
Mr Pester said he had visited the banking museum in Ruthwell and sat at the desk of movement founder Reverend Henry Duncan. He said he was inspired by his vision of bringing banking to those previously denied it.
"Bringing these values of the TSB back to the high street is important to us," he said. "We couldn't have a better brand to bring this bank back to life."
Meanwhile, Bruce Van Saun, finance director of Royal Bank of Scotland, told a conference that the part-nationalised lender is engaged in a "highly co-operative effort" with an investigation by the Treasury into whether it should be split into good and bad banks. He told the Barclays Global Financial Services conference there had been "rigorous scrutiny" of the cost and benefits.
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