A shocking new report from the Treasury Committee has revealed that nine major UK banks and building societies suffered at least 803 hours of IT outages over the past two years. That equates to a staggering 33 days of banking disruptions, affecting millions of customers nationwide.
The banks involved include Barclays, HSBC, Lloyds, Nationwide, Santander, NatWest, Danske Bank, Bank of Ireland, and Allied Irish Bank. However, the data does not account for two significant outages at Barclays and Lloyds that occurred on payday, leaving many unable to pay staff or bills.
Barclays is now facing potential compensation payouts of up to £12.5 million, with other banks paying significantly lower amounts. The Bank of Ireland paid the second-highest sum at just £350,000. HSBC (£232,697), Lloyds (£160,000), and Nationwide (£77,452) also compensated customers, while Santander paid only £17,000.
Emily McAllister, a Barclays customer, faced severe hardship due to an outage that left her and her children temporarily homeless. “It should have been a fresh start, but the experience was completely tainted,” she told the BBC.
Dame Meg Hillier, chair of the Treasury Committee, described the frequency of outages as “completely unacceptable” and urged banks to improve their IT infrastructure. Meanwhile, industry experts warn that traditional banks have failed to invest in modernising their systems, leaving customers vulnerable to disruptions.
With public trust at stake, banks must act swiftly to prevent further outages and ensure customers are not left stranded in financial limbo.
