On Friday, May 2, 2025, a widespread technology outage disrupted online banking services for numerous financial institutions across the United States, leaving hundreds of customers unable to access their accounts or send payments. Reports of issues began to flood in early that morning, with DownDetector, a website that monitors service disruptions, indicating a significant spike in complaints.
By 8 a.m. ET, nearly 800 users reported problems specifically with TD Bank and the payment service Zelle. As the morning progressed, the issues expanded to include other major banks such as Ally Bank, Bank of America, Capital One, Navy Federal Credit Union, and Santander, with reports continuing to rise.
According to representatives from Webster Bank and Zelle, the outages were linked to a third-party vendor, Fiserv, which provides essential backend services to many banks. A spokesperson for Zelle stated, “We are aware that certain Zelle users at some financial institutions are not able to use Zelle at this time. This situation involves an independent third-party that provides services to particular financial institutions. We are working diligently with our partners to resolve this matter as soon as we can.”
Fiserv, one of the largest financial technology providers in the U.S., began experiencing issues early on Friday, with problems escalating by 7 a.m. This outage affected a range of services including online bill payments, ACH transactions, and the functionality of mobile banking apps. Customers reported various issues, from locked accounts to missing direct deposits and non-functioning transfers.
The impact of this outage was felt broadly, with customers expressing frustration on social media. One affected TD Bank user shared their experience, stating, “I feel like my money is just floating and no one will help with anything or take any accountability!” This sentiment echoed across various platforms as individuals struggled to navigate the disruption.
As the day progressed, reports indicated that the outage affected not only large banks but also regional institutions and credit unions, including Northwest Bank, Sunflower Bank, and Farmers National Bank in Ohio. Affected customers reported that they were unable to access their accounts or complete transactions, leading to significant inconveniences.
A statement from TD Bank acknowledged the issues, with a spokesperson assuring customers that the Technical Support team was working diligently to resolve the problems. “We’ve been advised some applications may be experiencing issues and our Technical Support team is working diligently to resolve this. We appreciate your patience,” the representative said.
As of Friday afternoon, many banks were still experiencing intermittent issues, although some functionality had begun to return for select services. Fiserv had not confirmed the specific cause of the outage, but reports suggested that it stemmed from problems with its core processing software, which supports critical banking operations.
This incident raises broader concerns about the reliance of financial institutions on third-party technology providers. The fact that a single vendor's failure could disrupt services across multiple banks highlights the vulnerabilities inherent in the current banking ecosystem. As customers increasingly rely on digital banking for everyday transactions, the fragility of these systems becomes more apparent.
In light of the outage, customers are advised to check with their banks for updates on restoration times and to monitor social media or service status pages for real-time information. It is also recommended that individuals document any fees or financial consequences caused by the outage, as many banks may work with customers on overdrafts or late payments resulting from the disruption.
While some banks began restoring services, many customers remained unable to access their funds or complete transactions. Reports indicated that the issues were particularly acute for those expecting direct deposits, with some employees at Farmers National Bank noting that their paychecks were not deposited due to the outage affecting their employer’s payroll service.
As the situation developed, Fiserv announced that the internal issue causing the disruption had been resolved, and they were working to process the backlog of Zelle payments. However, the lack of immediate communication regarding the cause of the outage and the timeline for full restoration left many customers feeling anxious and frustrated.
This incident serves as a stark reminder of the potential risks associated with the increasing digitization of banking services. As consumers expect 24/7 access to their finances, the reliance on centralized technology providers may necessitate a reevaluation of risk management practices within the financial sector.
In conclusion, the banking industry may soon face increased scrutiny from regulators and consumer watchdogs in the wake of this incident. As the demand for digital services continues to rise, ensuring the resilience and reliability of banking infrastructure will be paramount in maintaining consumer trust.
