Thousands of UK bank customers, including those at Lloyds, Halifax, Bank of Scotland, Nationwide, TSB, and First Direct, faced difficulties accessing online accounts on Friday. The IT failures caused login problems and payment delays, exacerbated by it being payday for many customers. Most services were restored by Friday afternoon.
This is the second consecutive month of outages on a crucial payment day. In January, a Barclays glitch locked customers out for nearly 24 hours on HMRC's self-assessment deadline. MPs on the Treasury committee, who had already demanded answers from bank CEOs in February, expressed renewed concern. The committee is considering next steps next week.
The outages occur as banks continue closing branches, pushing customers towards digital services. Branch numbers fell from 10,565 in 2014 to 6,870 in 2024. The Financial Conduct Authority now requires banks to ensure cash access before closing sites, leading to alternatives like banking hubs and Post Offices.
UK Finance defended banks, stating they invest heavily in technology and work quickly to fix issues. However, Which? retail editor Reena Sewraz advised customers to keep evidence of impacted payments for potential compensation claims, urging banks to waive fees for missed payments.
