Lloyds, Halifax and TSB banking apps down on payday
A wave of IT outages disrupted online and mobile banking services for some of the UK’s largest banks on Friday, leaving thousands of customers unable to access their accounts or process payments on what is traditionally one of the busiest financial days of the month.
Lloyds Bank, Halifax, TSB, Nationwide, First Direct, and Bank of Scotland all reported technical issues affecting digital banking platforms. The outages, which began early in the morning, sparked a surge of complaints from customers struggling to transfer money, pay bills, or check their balances.
For many, the timing could not have been worse. The last Friday of the month—often payday for millions—typically sees an uptick in banking activity as salaries hit accounts, mortgage payments clear, and household budgets are rebalanced.
“We know some customers are having issues with internet banking and our apps,” a Lloyds Banking Group spokesperson told the BBC. “We’re sorry about this and we’re working to have it back to normal soon.”
By mid-morning, nearly 4,000 customers had reported problems with Lloyds’ services, according to data from Downdetector, a website that tracks outages. Halifax, which operates on the same platform, faced a similar number of complaints. TSB and Nationwide also acknowledged disruptions, with the latter warning of delays in incoming and outgoing payments.
Banking executives and industry experts say such disruptions are becoming increasingly common as financial institutions attempt to modernize their legacy IT infrastructure while managing heavy transaction volumes.
Chris Skinner, a fintech consultant and author, noted that UK banks are struggling to keep pace with digital transformation. “The growing complexity of banking systems, combined with high transaction loads around payday, makes them vulnerable to outages,” he said. “Banks need to ensure their platforms are resilient enough to handle demand spikes.”
The incident marks the second consecutive month that major banks in the UK have suffered technical failures on payday. A similar disruption in January prompted calls for greater scrutiny of banking IT systems, particularly given the increased reliance on digital services.
For customers, the lack of access led to widespread frustration. “I can’t log into my account, and my rent is due today,” one Lloyds customer wrote on social media. Others expressed concern that delayed payments could result in overdraft fees or late payment penalties.
Nationwide, which saw issues with payments earlier in the morning, said most services had been restored by midday, though some transactions were still delayed. First Direct, owned by HSBC, also confirmed it had resolved payment failures that affected customers earlier in the day.
The Financial Conduct Authority (FCA), the UK’s financial regulator, has previously warned banks about the risks of IT failures and urged them to improve their technology resilience. The regulator has yet to comment on the latest outages but is likely to seek explanations from affected banks.
With the increasing shift toward online banking, the disruptions highlight the fragility of digital financial systems and the challenges institutions face in maintaining uninterrupted access. For now, customers are advised to monitor their accounts and avoid duplicating transactions as banks work through processing backlogs.