TSB eyes rapid push into current account market TSB, which was spun out of Lloyds Banking Group this week, is planning a rapid and vigorous push into the current account market as it seeks to satisfy the competition watchdog that it can challenge the biggest banks. The new business is aiming to build its share of current accounts to at least 6 per cent over the coming years - from 4.3 per cent now - an increase that would require it to attract 1.5m new customers, according to industry estimates. TSB is accelerating its growth strategy after a boost from the Office of Fair Trading, which earlier this week ruled that Lloyds must pump an additional £240m into the business to help fuel its expansion over the next three to five years. This includes £200m that Lloyds makes on £4bn worth of mortgages, which will in effect double TSB's profit over the first four years, according to people familiar with the situation. Paul Pester, chief executive of TSB, told the Financial Times that the additional funds would provide a "material enhancement" to the business. "It's a great birthday present," he said. It will enable us to accelerate the delivery of our strategy to bring more competition. TSB's share of the current account market falls below its 6 per cent share of branches as almost a quarter of its 631 branches previously formed the C&G business, which did not offer current accounts. Mr Pester said it was "realistic" to increase its share of current accounts to be at least in line with its branch network. He said TSB was stepping up its growth plans in light of the OFT move but would be careful not to expand too fast. "We are not here to have a bright flash then disappear," he said. He expected to provide a detailed growth plan when the business publishes its listing prospectus ahead of a planned flotation next year. Mr Pester plans to lure customers from rival banks by promising to use their money solely to boost local communities, compared with other lenders that may channel funds into investment banking operations or overseas businesses. "We operate across Britain and nowhere else," he said. That enables us to say to customers that every penny that comes into the bank will be used to fund mortgages or local business loans to create employment and help local areas grow. TSB will not empower local branch managers to make credit decisions but said it would provide customers with a breakdown of where deposits are coming from and where money is being lent. It also pledged to provide greater transparency around credit decisions and charging structures. On pay, Mr Pester said the bank had removed direct links between product sales and rewards for branch staff and planned to overhaul bonus structures for senior executives once TSB is sold. Lloyds was ordered to carve out and sell the TSB business by Brussels as a condition of its government bailout. It is expected to float up to half of TSB midway through 2014. Mr Pester said TSB shares would be a "different proposition" to Lloyds - which is braced for the government to start selling its £21bn stake within weeks - as it is the "only stock that gives investors direct access to UK retail banking." Separating TSB will cost Lloyds £1.3bn-£1.5bn, more than half of which relates to IT costs. The bank has built about 3,500 individual systems for TSB, including 500 core functions. TSB also has 10-year servicing agreements with Lloyds to allow it to tap into the larger bank's mobile and digital platforms. The OFT has requested an independent trustee to monitor the agreements to ensure TSB customers will not be disadvantaged by poor service from Lloyds.