Following the news that the online and mobile banking services of HSBC have suffered outage on 11 February 2025 in the UK;
Jonathan Vaughan Burleigh, Associate Analyst, Banking and Payments at GlobalData, a leading data and analytics company, offers his view:
“The disruption affected online and mobile banking, preventing users from accessing their accounts, making payments, or checking balances. Many customers reported being unable to transfer money, pay bills, or even see their transactions, leaving some concerned about missed payments and financial commitments. This incident is the latest in a series of digital failures plaguing high street banks, following the nearly three-day outage of the entire Barclay’s entire platform recently. While HSBC resolved its issues in less than a day, much faster than Barclays, such outages should not be happening at all. With the retail banking industry continuously transformed by digital challengers, incumbent banks must invest strategically to stay ahead of the curve and maintain consumer trust.
“In just over a week since Barclays’ outage locked consumers out on payday, Halifax, Lloyds, and HSBC have all experienced issues with their online platforms. GlobalData’s report, “HSBC – Digital Transformation Strategies” reveals that the UK’s largest bank’s ICT budget in 2023 was estimated at over $10 billion, with the budgets for Barclays and Lloyds both exceeding $1 billion.
“The performance and efficiency of large banks’ digital offerings simply does not justify the vast resources being poured into ICT systems. In a market where consumers value convenience and seamless service, incumbent banks need to radically rethink their approach to online platforms to meet expectations.
“Despite the enormous ICT budgets, major retail banks continue to struggle with digital performance and consumer satisfaction. According to GlobalData’s Competitor Benchmarking Analytics 2024, Starling, a digital-only competitor, ranked highest in the market for digital satisfaction and net promoter score (NPS). In contrast, each bank recently affected by a digital outage placed below average in both metrics, with HSBC ranking fifth lowest in NPS and third lowest in digital satisfaction.
“Digital-only banks have built vastly superior online platforms compared to traditional banks. Designed from the ground up as fully cloud-native, these banks operate more efficiently and at a fraction of the cost of legacy systems. This infrastructure significantly increases their agility, allowing for faster problem resolution and more responsive service to consumer demands.
“As digital disruptions continue to impact traditional banking, consumer frustration will grow, leading to negative sentiment towards legacy providers. GlobalData’s 2024 Financial Services Consumer Survey* reveals that 29% of users who switched banks did so based on recommendation from family and friends, highlighting the ongoing importance of customer satisfaction and high NPS.
“If traditional banks fail to overhaul their digital strategies, dissatisfied customers will seek more reliable providers with superior digital experiences. Legacy banks have historically retained consumers through long-term relationships built on trust, but if that trust is eroded by poor service, digital challengers will be ready to welcome them with open arms.”
