Barclays Bank is facing widespread criticism from its customers after a major IT outage left thousands unable to access their accounts on January 31, 2025. The outage, which severely disrupted online banking and mobile app services, occurred on payday for many, causing significant challenges for those trying to conduct transactions.
Reports of issues began surfacing around 5 am local time, according to the outage tracking site Downdetector, which recorded over 1,200 problems reported by users. At the peak, 55% indicated issues with mobile banking, 37% with online services, and 8% with bill payments. Customers took to social media, voicing their frustrations over the disruption.
Barclays acknowledged the outage through its official social media channels, stating, "We're sorry if you're having issues with some of our services at the moment. We're experiencing some technical problems and are working hard to fix the issue." Initially, the bank assured customers they could still use their cards and cash machines, but many reported difficulties even with those services.
For some, the timing of this outage could not have been worse. Many customers shared stories of how the interruption impacted their ability to buy essentials. A woman with several children reported being unable to withdraw money to purchase food, emphasizing the dire situation faced by many households dependent on immediate access to funds. "We've needed milk and food for my children, but our money is tied up due to the outage," she said.
Others faced hurdles with life-changing transactions. Scott, 27, expressed his distress after the outage delayed payment for his new home, leaving him and his pregnant wife effectively homeless. "We've sold our house and can't move because the money hasn’t gone through. We're just waiting here with no place to go," he told BBC News.
The timing of the Barclays outage has raised alarms among self-employed individuals who needed to complete their self-assessment tax returns by the end of the day. While HMRC acknowledged the situation and noted it was working with Barclays to mitigate the impact on taxpayers, many customers remained worried about incurring penalties due to the disruption. Typically, individuals face automatic penalties for late submissions, but HMRC assured taxpayers no penalties would apply if they could not file on time due to the outage.
Barclays assured its customers it would rectify the situation swiftly, stating, "We will work to make sure no one is left out of pocket due to these issues." Still, the lack of concrete updates or timelines for resolution contrasted sharply with the urgency felt by customers facing immediate, real-world consequences.
This isn't the first time Barclays or other large banking institutions have encountered significant outages. Just earlier this year, disruptions had affected major banks across the UK, raising concerns over the robustness of their IT systems. Cyber security experts warn about the vulnerabilities of relying heavily on digital banking frameworks, particularly when basic transactions, such as card payments, are involved.
With banking services increasingly shifting online and to mobile applications, many customers might begin to question whether these institutions can reliably maintain access during high-demand periods. This recent outage brings forth the call for solutions and improvements to digital resilience and customer support systems.
Public sentiment on social media revealed dissatisfaction with Barclays' response to the issues, with some users expressing frustration over the bank’s inability to assist over the phone during the outage. Even as Barclays works to restore full access to its services, the questions linger: how will this impact customer loyalty and what changes must be made to prevent such issues from reoccurring?
Barclays is one of the largest banks in the UK, with over 20 million retail customers and a considerable share of the UK's credit and debit card transactions. Such incidents not only shake customer confidence but also spotlight the behind-the-scenes operations of fintech service providers and their potential vulnerabilities.
Although Barclays has stated it is working on resolving the problems, as of 5 PM, the bank's services remain intermittently unavailable, leaving thousands anxious about their funds and future transactions. The incident highlights the fragility of digital banking systems and raises important questions about their reliability.
With many left waiting without resolution and the looming deadline for self-assessed tax returns this situation may continue to affect Barclays customers negatively as they try to navigate their everyday needs and obligations as the bank works to fix its systems.