It has been widely reported that multiple bank apps were not accessible by consumers. These include the Bank of Scotland, Lloyds, TSB, and Halifax Bank—all of which fall under the Lloyds Banking Group. Reportedly, Nationwide Building Society was also impacted. The issue is now apparently resolved.
The issue that impacted many users raises questions about the efficacy and responsibilities of banks to enable 24/7 access to services.
Our app and online banking services are now working as normal.
— Lloyds (@LloydsBank) February 28, 2025
Payments expert Robert Kraal, now co-founder and CBDO at Silverflow, who previously worked at Bibit, Adyen, and others, says these outages are a reminder of the vulnerabilities of the legacy banking system.
“The sheer volume of reports on Downdetector, with over 4,000 for Lloyds alone, underscores the scale of the problem. The Fintech and banking world desperately needs a drastic update – this is a systemic crisis that directly impacts people’s livelihoods,” said Kraal.
He noted that these app failures occurred on payday, impacting their ability to access funds and perhaps pay their bills. Kraal blames all of this on antiquated technology, adding that Barclay’s outage in January shows this is an escalating, not an isolated incident.
“This pattern of repeated failures, prompting the Treasury Committee to demand information from nine major banks about IT failures, signifies a critical point. The current economic climate, with its potential trade upheavals and shifting investment landscapes, underscores the need for immediate action. While FinTechs are experiencing an upswing with increased transaction volumes, they too are not immune to the challenges posed by outdated systems.”
Kraal explained that incumbent banks and Fintechs must focus on updating their tech stacks. These financial services firms must invest in “scalable, API-first systems, enhanced security, and AI-driven solutions.”
He stated that fraud detection and customer experiences is not a luxury, but a necessity.
“Building a robust, resilient infrastructure now will not only capitalise on the current boom but also provide a crucial buffer against inevitable downturns. The time for incremental fixes is over; a comprehensive, strategic reinvestment in core payments technology is essential to restore customer trust and ensure operational efficiency.”
Hopefully, there will be a speedy review of why the outage happened and how these services will avoid such an embarrassing incident in the future. Effective planning should make app failures like this a thing of the past.
