Marketplace Tech Are digital banking outages on the rise?
May 26, 2025
Naomi Rainey, a BBC reporter who covers banking issues, discusses the alarming rise in digital banking outages. She highlights a significant three-day IT glitch at Barclays, showcasing vulnerabilities in the system. Rainey shares a poignant story about a family who faced severe financial challenges during a crucial moving day due to an outage. The conversation also delves into global examples of these disruptions and expert advice on safeguarding personal finances amidst increasing reliance on technology.
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Emily's Housing Move Disrupted
- Emily McAllister faced a digital banking outage during a house move, delaying her funds transfer for three days.
- This disrupted her family, leaving them without a home or belongings temporarily, highlighting real impacts of banking outages.
UK Banks Face Extensive IT Failures
- UK banks suffered 803 hours of IT failures in two years, equivalent to 33 days of lost service.
- Barclays is among the worst affected, facing potential $16 million in compensation due to outages since 2023.
Bank Concentration Increases Risk
- Concentration of UK's banking system into five big banks increases vulnerability to IT failures.
- Increasing focus on digital transactions raises risks when systems fail, amplifying impacts on customers.