Online banking: Nationwide, Lloyds, Halifax, and more down as payday service issues and problems reported

• Major UK banks, including Nationwide, First Direct, Lloyds, and Halifax, are facing online banking issues on payday
• This is the second consecutive month that banking outages have disrupted payday transactions
• Some banks have reassured customers that direct debits and standing orders are still being processed
• Experts say banks are struggling to keep up with evolving technology

It’s the final Friday of February, which for many means a fresh influx of funds into their bank accounts on payday.

But for the second month in a row, thousands have been impacted by glitches across multiple banks, meaning their newfound wealth is almost impossible to access.

Nationwide, First Direct, Lloyds and Halifax have all confirmed issues with their online banking systems on Friday morning (February 28), leaving many customers without access.

Experts say online banking systems often struggle with the high rate of activity as wages and bills go in and out of accounts at the end of each month. In messages posted online, the banks said they are working to return their systems to normal.

According to the service status website DownDetector, users reported issues with several banks, with many struggling to access online banking or transfer money.

Late last month and into early February, Barclays, Lloyds Bank, and Halifax experienced service outages that left customers unable to access their funds around payday.

What have the banks said?

Nationwide said in a message on its website “some incoming and outgoing payments are delayed at the moment”, but that “everything else is working normally”.

The bank said that direct debits and standing orders are functioning as usual, while payments are currently queued and will be processed shortly. Customers are being told that no action is required on their part.

First Direct acknowledged on its website that both its mobile and online banking services are facing payment issues. Shortly after, Lloyds and Halifax confirmed that some customers were unable to access online banking and their mobile apps.

TSB also reported "intermittent" problems affecting its online and mobile banking services.

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Can banks keep up?

Experts say that online banking systems frequently face challenges handling the surge in transactions as salaries are deposited and bills are paid at the end of each month.

Following previous outages, Fintech expert Chris Skinner told the PA news agency that banks are struggling to keep pace with rapidly evolving technology.

“I think the world is spinning so fast with technology that the challenge we have is no-one’s keeping up, particularly regulators and lawmakers,” he said. “So the regulators and lawmakers need to have people who do better due diligence.

“I think there’s an issue here with reliability, service and resilience, and that’s the accountability of the people who are organising the structures, both from within the business, and those who look over the business in terms of the regulators.

“At the moment, I think both are probably finding it too hard to keep up.”

But I need to pay my bills... help!

If you need to pay bills on payday but cannot access your bank account due to an outage, there are a few steps you can take.

First, check whether the issue is affecting all banking services or just online and mobile banking. You might still be able to withdraw cash from an ATM or make payments using your debit card.

If possible, visit a branch in person to see if they can process urgent transactions for you.

If direct debits or standing orders are due, most banks will automatically process them once systems are restored, so you typically don’t need to take immediate action.

But if you need to send a manual payment, such as rent or an urgent bill, contact your bank’s customer service line for guidance.

Many companies understand that banking issues can cause delays and may offer flexibility if you inform them of the situation.

If necessary, consider alternative payment methods, such as using a credit card or asking a trusted friend or family member for temporary assistance until your bank access is restored.

If you've been affected by these banking issues, we’d love to hear from you. Share your experience in the comments section.