Online banking issues hit customers on payday for second month in a row
28 February 2025, 09:24
Four banks have confirmed disruption for customers on Friday morning.
Nationwide, First Direct, Lloyds and Halifax have all confirmed issues with their online banking systems on Friday morning, leaving many customers without access to funds on payday.
It is the second month in a row that major banks have been hit by IT issues around payday, with experts saying online banking systems often struggle with the high rate of activity as wages and bills go in and out of accounts at the end of each month.
In messages posted online, the banks said they are working to return their systems to normal.
Nationwide said in a message on its website “some incoming and outgoing payments are delayed at the moment”, but that “everything else is working normally”.
It said direct debits and standing orders are working as normal, but payments are in a queue and will arrive soon, adding customers do not need to do anything.
We're aware of some issues affecting our services this morning. Some incoming and outgoing payments are delayed. They are in a queue and will arrive ASAP. For updates: https://t.co/o1lETrLtlf
— Nationwide (@AskNationwide) February 28, 2025
Meanwhile, First Direct confirmed on its website that both its mobile and online banking services are “experiencing issues with payments”.
Shortly afterwards, Lloyds and Halifax also confirmed issues with customers being unable to log in to online banking and their respective mobile banking apps.
According to service status website DownDetector, users are reporting issues with a number of banks on Friday morning, with customers struggling to get online or move funds.
TSB also confirmed it is having “intermittent” issues with online and mobile banking.
At the end of last month and in early February, Barclays, Lloyds Bank and Halifax were all hit by service outages which left customers unable to access funds on or just after payday.
Fintech expert Chris Skinner told the PA news agency in the wake of those outages that banks were finding it “too hard to keep up” with fast-moving technology.
“I think the world is spinning so fast with technology that the challenge we have is no-one’s keeping up, particularly regulators and lawmakers,” he said.
We understand some customers are having issues making payments right now. We’re really sorry and are investigating as a matter of urgency. We will share an update as soon as possible.
— first direct (@firstdirect) February 28, 2025
“So the regulators and lawmakers need to have people who do better due diligence.
“I think there’s an issue here with reliability, service and resilience, and that’s the accountability of the people who are organising the structures, both from within the business, and those who look over the business in terms of the regulators.
“At the moment, I think both are probably finding it too hard to keep up.”
He added the vast array of modern tech systems needed to operate in the banking world today mean firms have “such a smorgasbord of things they have to work with”, the “competence of keeping up with these changes is really challenging every bank”.
Mr Skinner, who also runs industry blog The Finanser, said the flurry of outages on Fridays – and sometimes close to paydays – is likely due to banks planning software updates for weekends as it tends to be a quieter time to carry out such work.
