The UK’s banking watchdog is investigating Barclays after an IT outage left thousands of customers unable to access their accounts for several days. The Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) have been in close contact with the bank to understand the cause and impact of the disruption. The outage, which began on Friday, affected Barclays’ mobile app, online banking, and payment services.
Customers experienced significant inconvenience, with many unable to make payments or withdraw cash despite having funds in their accounts. Barclays acknowledged the issue two hours after it began and informed customers that while credit cards and ATMs were still functioning, there were problems with in-person payments and cash withdrawals. The bank later updated its website to indicate that telephone banking was also disrupted.
The incident has put pressure on Barclays as it works to restore services and customer confidence. The regulators’ investigation underscores the critical importance of robust IT infrastructure in the banking sector, particularly as digital services become increasingly essential for customers.
Barclays faces scrutiny after IT outage
Barclays has approximately 20 million customers in the United Kingdom and processes over 40% of the country’s credit and debit card transactions. The outage has affected not only individuals but also businesses, with Friday being the last day of the month and the deadline for self-assessment submissions to the UK’s tax authority. Customers have expressed frustration on social media, with many noting the timing of the outage and the impact on their financial obligations.
Barclays has yet to provide a timeline for the resolution of the issues but has assured customers that work is being done urgently to rectify the situation. This is not the first major banking outage of the year, with Capital One experiencing a days-long disruption earlier this month due to a power outage at a third-party vendor. As banks increasingly rely on digital services, the need for robust IT infrastructure and contingency plans becomes ever more critical.
The PRA and FCA’s investigation into the Barclays outage aims to identify the root cause, assess the impact on customers, and ensure that measures are put in place to prevent future occurrences. The regulators’ findings and any potential consequences for Barclays are yet to be determined, but the incident serves as a reminder of the challenges faced by financial institutions in maintaining seamless digital services in an increasingly connected world.
