TSB has penned a new deal to overhaul its computer systems after a major outage which locked two million people out of their accounts and battered the bank’s reputation.

US computer giant IBM will manage the bank’s cloud platforms and run its IT infrastructure, under TSB’s supervision.

The changes will allow the bank to “strengthen IT resilience and leverage higher value technology, including AI, to deliver new innovative cloud-native services to its customers”, it said.

It will channel the company’s cash points, internet banking, mobile banking and high street branches through the same cloud platform.

READ MORE: TSB lacked common sense in run-up to IT meltdown, report says

The bank has already pledged to invest £120 million over the next three years as part of a major digital overhaul.

Its new chief executive Debbie Crosbie will hope to avoid a repeat of the incident in 2018, which investigators partly blamed on its board.

TSB was switching over after a systems upgrade when the troubles hit. However, the bank’s IT boss did not tell his superiors that there were problems.

An investigation by the Slaughter and May law firm later found that his call was “ill-judged” and that the bank was not prepared to roll out the system to its five million customers.

The new deal with IBM will create 100 jobs in Edinburgh as the bank opens a new technology centre in the Scottish capital. It will open in April 2020.

READ MORE: TSB to close 17 Scottish branches due to digital banking trends

TSB chief operating officer Suresh Viswanathan said: “At a time when both the pace of change and the customer demand for new services is increasing, our partnership ensures our digital offering remains competitive and allows us to act faster to meet the needs of TSB customers.”

Tosca Colangeli, a technology manager at TSB, said: “Banks need a reliable, resilient and secure technology environment to meet the needs of customers and address complex security and regulatory requirements.”