The UK Parliament Treasury Committee has issued a statement on the unfortunate occurrences of bank App outages.
In early February, the Treasury Committee sent letters to nine bank CEOs demanding information on the size of the problem.
At that time, the Committee noted that as the number of high street bank branches decline, outages are more problematic for consumers.
Recently, a handful of banks saw their services go offline, causing concern and chaos for customers needing funds or expecting to be paid. While the services were restored that same day, it highlighted the ongoing issue of banking platforms going down and the inconveniences these outages caused.
The Treasury Committee reports:
“Nine of the top banks and building societies operating in the UK accumulated at least 803 hours, the equivalent of more than 33 days, of unplanned tech and systems outages in the last two years.”
From January 2023 to February 2025, the Committee reports at least 158 banking IT failures. This does not include last week’s outages, which have been blamed on out-of-date technology.
The Treasury report points a finger of blame at “third-party suppliers, disruption caused by a change in systems and internal software malfunctions.”
Negligent banks are expected to pay penalties for their transgressions with Barclays expected to pay up to £12.5 million to compensate for these problems.
Chair of the Treasury Select Committee, Dame Meg Hillier MP, commented on the report:
“The fact there has been enough outages to fill a whole month within the last two years shows customers’ frustrations are completely valid. The reality is that this data shows even the most successful banks and building societies hit technical glitches. What’s critical is they react swiftly and ensure customers are kept informed throughout.
Laurent Descout, co-founder and CEO of Neo says bank outages don’t just harm individuals they undermine businesses as well.
“For SMEs, a failed payment can mean serious disruption, delayed supplier payments, or even the difference between making payroll and not. Unlike larger corporations, small businesses often lack the financial cushion to absorb these shocks, making them particularly vulnerable when payment systems fail. At the heart of the issue is banks’ reliance on outdated legacy technology, which struggles to keep up with modern payment demands. When issues occur, banks often prioritise their largest corporate clients, leaving SMEs at the back of the queue. As a result, more small businesses are turning to Fintech alternatives that offer greater reliability, flexibility, innovation and customer support.”