Edinburgh-based TSB said the investment was about taking the bank forward.
The centre will open in April and will be home to IT specialists, data engineers and analysts.
has also announced a partnership with computing giant IBM, to run its
key banking platforms, including ATMs, digital banking and high street
Almost two million customers at the bank lost
access to online banking services in April 2018, after the bungled
introduction of a new computer system.
TSB's customer banking
director Robin Bulloch said of the new investment: "I'm deeply sorry for
the trouble and inconvenience that was caused at our IT migration, but
this about taking the business forward."
Mr Bulloch told
BBC Radio's Good Morning Scotland programme the bank's new IT
specialists would be building on the "very strong banking platform" TSB
had been given by its Spanish owner, Banco Sabadell.
customers wanted better online banking, and that new TSB digital
services developed in Edinburgh would help customers save and budget, as
well as being able to look at their balances and transfer money.
Bulloch added: "IBM are a large-scale IT provider and we're very
confident they will help support us in terms of building our
propositions and ensuring the on-going stability of our banking
Half of all TSB products bought by customers are now purchased online, with the bank expecting that to increase to 80%.
That comes as other UK banks, such as RBS, Virgin Money Lloyds and Barclays, race to boost their own digital services.
new investment was welcomed by Tracy Black, director of the CBI
Scotland business group, who added: "For Scotland to punch above its
weight internationally and attract vital overseas investment, we need to
send out a clear signal that we're not only open for business but
building an economy for the future.
"TSB's significant investment represents an important step in that direction."
"We're seeing less and less footfall in our branches," said Mr Bulloch.
"It's one of the most difficult decisions that I have to make.
we're seeing is more and more customers going online, and for those
customers that are going to be impacted by branches that are closing, we
work very closely with them to help educate them on other ways of
banking, such a over the phone and online."
Mr Bulloch also said
the bank wanted to offer affected customers "reasonable access" access
to a TSB branch in "reasonably close proximity", and that customers were
able to pay in and withdraw money at Post Offices.
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