On August 27, 2025, thousands of HSBC customers across the United Kingdom found themselves unexpectedly locked out of their online and mobile banking accounts. The outage, which began just after 11:00 BST, sent ripples of frustration and anxiety through households and businesses alike, as people scrambled to pay bills, transfer funds, and check balances—only to be met with error codes and apologetic messages from the banking giant.
According to BBC, the problems first emerged at 11:00 BST, and within minutes, the outage-checking site Downdetector was flooded with reports. At the peak, more than 4,000 issues were logged, with 62% of complaints relating to mobile banking and 30% to online banking. By 11:45 BST, Downdetector had recorded a surge of 4,765 reports, underscoring the widespread nature of the disruption.
HSBC’s social media channels were quickly inundated. “We understand some customers are having issues accessing banking services right now. We’re really sorry and are investigating as a matter of urgency. We will share an update as soon as possible,” the bank posted on X (formerly Twitter) at 11:45 BST, as reported by LADbible and The Independent. Yet, for many customers, this reassurance did little to ease their immediate concerns.
For those trying to access their accounts, the experience was marked by frustration. Users reported seeing error messages such as “err03” or simply being told, “Sorry your information isn’t available right now. Please try again later.” According to Daily Mail, even those who managed to log in found themselves unable to view their accounts or complete transactions. One user tweeted, “Your mobile app and online services are down, and online payments I make are being declined. What’s going on?” Another pleaded, “HSBC please help me. Urgent payment that needs to be made—when can I expect the app to be working again?”
The outage didn’t just affect HSBC’s core brand. First Direct, the online-focused banking service also operated by HSBC, was hit as well. The bank’s service status page confirmed that both mobile and internet banking were experiencing issues, though card payments and in-person banking services remained operational. Customers were advised to call the customer services helpline for urgent requests—a small comfort for those facing time-sensitive financial obligations.
For many, the timing couldn’t have been worse. The outage came on the heels of years of physical branch closures, a point not lost on customers. In 2022, HSBC announced the closure of 114 branches in the UK and promised not to close any more until 2026. As one customer vented online, “This will cost me £ if I can’t make payments today. I don’t have access to a laptop today, only my phone.” Others expressed concern about rent, bills, and potential late fees, with one saying, “I have rent and bills to pay today. It charges me if I’m late, what will I do?”
HSBC, which claims 15 million active UK customers and 600,000 business customers across its brands, was quick to apologize. “We apologise to our customers who were impacted, and we’ll continue to monitor systems closely,” a spokesperson told the BBC once the issue was resolved. The bank confirmed that by around 15:15 BST, services were recovering, and normal operations had resumed. “Services are now recovering, and we’ll continue to monitor closely. We apologise for the inconvenience and thank you for your patience,” HSBC posted in an update.
The disruption highlights a broader trend affecting UK banking. According to a March 2025 report cited by PYMNTS and BBC, nine major banks and building societies have experienced around 803 hours—equivalent to 33 days—of outages since 2023. In May 2024 alone, 1.2 million people were affected by outages at major banks, including Lloyds Banking Group and TSB. The frequency of such incidents has left many questioning the resilience of digital banking infrastructure, especially as reliance on online and mobile services grows.
Indeed, research by PYMNTS Intelligence found that 42% of consumers now handle their banking online, with 68.6% using a mobile app and 66.6% accessing their accounts via desktop browsers at least once a month. Banks are investing heavily in technology, seeking to tap into instant payments, digital account openings, and embedded finance. But as the events of August 27 demonstrated, even the biggest players aren’t immune to technical hiccups.
The outage also underscored the challenges banks face in attracting and retaining younger customers, especially Generation Z. As Bloomberg News reported, UK lenders are offering sign-on bonuses and updating digital offerings to woo this demographic, which is more likely to maintain multiple accounts and switch providers for better deals. Despite these efforts, only 23% of Gen Z consumers belong to credit unions, and just 14% use one as their primary provider, suggesting a gap between expectations and what traditional financial institutions deliver.
For customers directly impacted by the outage, the question of compensation loomed large. Unlike the telecoms industry, where compensation is automatically due for service interruptions, UK banks—including HSBC—are under no obligation to pay out for short outages. However, as LADbible and Daily Mail noted, customers who suffered financial losses—such as being unable to pay bills or incurring late fees—can seek redress. The advice? Keep careful records of what happened, including the names of any bank representatives spoken to, and make a formal complaint via the HSBC website. If dissatisfied with the response, customers can escalate the matter to the Financial Ombudsman Service, an independent body that can require the bank to pay compensation if warranted.
Still, there’s no guarantee of a payout. As one frustrated customer put it, “Any chance of being honest and transparent with your customers about why we can’t access our money?!” The lack of automatic compensation means the burden falls on individuals to document their losses and navigate the complaints process—an added headache in an already stressful situation.
The August 27 outage serves as a stark reminder of both the promise and the pitfalls of modern banking. As more branches close and digital services become the norm, the stakes of technical reliability only grow higher. For HSBC and its millions of UK customers, the hope is that the lessons learned from this disruption will lead to more robust systems—and fewer unwelcome surprises—in the future.
