By Robb M. Stewart
The recent network outage experienced by Laurentian Bank of Canada has resulted in significant changes within the leadership team. Both the CEO and chair have made the decision to step down from their positions.
On Monday, Michael Mueller officially resigned as a director and chair, while Rania Llewellyn will immediately leave her role as president and CEO. These departures mark a turning point for Laurentian Bank of Canada.
Taking over as the new president and CEO is Eric Provost, a seasoned professional with over a decade of experience at Laurentian. Additionally, Provost will also join the bank’s board. In terms of the chair position, Michael Boychuk, who is currently a director and chair of the bank’s audit committee, has been appointed to this role.
Provost recognizes the urgency of the situation and has outlined his immediate priorities. Rebuilding customer trust and addressing the impacts of the recent mainframe outage are at the top of his agenda. This outage occurred during a planned information-technology maintenance update.
To resolve any outstanding issues promptly, Provost has developed a comprehensive three-part plan. This plan includes resolving all remaining problems related to the outage, improving communication with customers to provide regular updates on service restoration, and conducting a thorough review of the factors that led to the outage in the first place.
In an effort to alleviate any inconvenience caused to customers, Laurentian Bank of Canada will be reversing all monthly service fees for September as soon as possible. Additionally, despite it being a federal holiday on Monday, a number of bank branches will remain open. Furthermore, the bank plans to extend branch hours for the remainder of the week.
With these changes in leadership and proactive measures being taken, Laurentian Bank of Canada is committed to rectifying the situation and ensuring that customers receive the service they deserve.
Laurentian Bank Restores Services Following Outage
Laurentian Bank announced that it has successfully restored most of its services, including its online banking platform. However, due to higher-than-usual volumes, customers may still experience intermittent service interruptions or slowness while using the online platform. The bank assured customers that their data and financial information remained secure throughout the week-long outage.
The bank’s president and CEO, Llewellyn, who became the first woman to lead a major Canadian chartered bank in 2020, initiated a three-year strategic review to revitalize Laurentian Bank. This review aimed to position the bank for future success.
Provost, who previously headed Laurentian’s personal and commercial banking operations, will now take on a new role within the bank.
After conducting a thorough review of options, Laurentian Bank’s board and management determined that an accelerated evolution of its current plan would be the best path to drive shareholder value. This approach will prioritize efficiency and simplification. Various options, including a potential acquisition of the entire bank or the sale of specific businesses, were considered during the review process.