Thousands of HSBC customers were locked out of their accounts for over five hours on 27 August 2025, raising the question: Is the UK overly-reliant on banking apps?
The outage began at around 11:00 BST, affecting both the HSBC mobile app and desktop online banking. Reports flooded Downdetector within minutes, as users across the UK were unable to check balances, transfer funds, or access their accounts at all. The disruption, which lasted until late afternoon, occurred at a time when physical branches are becoming increasingly scarce.
Is the HSBC App Still Down?
HSBC confirmed by Wednesday evening that the app and online banking systems were functioning again. In a public statement, the bank apologised to those affected and said it was closely monitoring its systems. While service has resumed, the temporary collapse left customers uncertain and exposed, especially those needing immediate access to their finances.
For customers still experiencing difficulty or needing urgent access, HSBC has advised contacting its customer service hotline directly. The phone service is active and can provide assistance with time-sensitive transactions such as emergency payments or account queries. The bank has not reported any new outages since the incident was resolved.
What Happened on 27 August?
The system failure started just after 11:00 BST on Wednesday, 27 August 2025. A surge in user complaints was recorded almost immediately, with customers reporting login failures across HSBC’s mobile and web platforms. Five hours later, HSBC issued a public message stating that the problem had been fixed.
This incident is not the first of its kind. Users took to social media to question the bank’s preparedness and pointed out the inconvenience caused by the lack of physical banking options. Many noted that, with HSBC having closed 114 branches in 2022, their reliance on digital services had become massive.
Impact of HSBC’s Digital Push
In 2022, HSBC announced its plan to shut down more than a hundred UK branches, citing declining in-person usage. The bank later agreed not to close any more branches until 2026. Nonetheless, this has led to a steep rise in dependence on digital platforms.
This change has left some vulnerable. About 1.6 million people in the UK remain offline, while millions more are only partially digitally connected. For those affected, five hours without access is not just inconvenient — it can mean missed rent, failed salary transfers, or declined payments.
Systemic Failures in UK Banking
HSBC’s outage is part of a wider issue. In March 2025, the Financial Conduct Authority reported that nine major banks and building societies had experienced approximately 803 hours of IT system failures since early 2023. That’s the equivalent of 33 days of outages in just over two years.
The pressure on banks to offer fast and secure services continues to mount. But legacy systems and patchwork IT infrastructures make it difficult to modernise without disruption. At the same time, rising cyber threats only add to the complexity of maintaining reliability.
Public Trust and Fintech Competition
A YouGov survey in July 2025 showed that nearly half (47%) of UK customers worry about the stability of digital banking services. Another 62% said that banks should focus on strengthening their systems before introducing new features. Failures like HSBC’s make traditional banks vulnerable to competition from newer, digital-first providers.
Neobanks such as Monzo, Starling and Revolut have gained millions of new users in recent years. Monzo alone reached 13 million UK customers by May 2025, up from 5.6 million in 2022. Their selling point is simple: speed, simplicity, and fewer interruptions.
What to Expect Next
Though HSBC has restored its systems, the damage to customer confidence is harder to reverse. Regulators are expected to continue pushing for more transparent reporting and stronger digital infrastructure in the sector. Meanwhile, banks face increasing pressure to update their core technology without cutting corners.
New technology partnerships may offer some solutions. Companies like CoreWeave, Microsoft Azure, and Amazon Web Services are being adopted by banks for scalable, cloud-based services. But the process is expensive and takes years, not weeks, to fully implement.