NatWest apologises to millions of customers locked out of app

TruthLens AI Suggested Headline:

"NatWest Addresses Mobile Banking App Outage Affecting Millions of Customers"

NatWest apologises to millions of customers locked out of app analysis cover image The Guardian 7.7
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Original Article Source: https://www.theguardian.com/business/2025/jun/06/natwest-apologises-to-millions-of-customers-locked-out-of-app
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TruthLens AI Summary

NatWest has issued an apology to its customers after a significant IT outage rendered its mobile banking app inaccessible to millions. The issue arose following an update to the app that was deployed late Thursday night, leading to widespread difficulties for users attempting to access their accounts from 9 am on Friday. This disruption is particularly impactful for the bank's more than 10 million active app users who rely on the mobile platform for daily banking activities. Despite the app outage, NatWest reassured customers that other banking services, including card payments, in-branch services, online banking, and telephone banking, were functioning normally. A spokesperson for the bank expressed regret over the inconvenience and emphasized that efforts were underway to resolve the issue promptly.

The incident comes at a time when NatWest, like many other high street banks, is increasingly directing customers towards its digital services while simultaneously closing physical branches. The bank plans to shut down 53 more branches by 2025, reducing its network to 431 locations. Recent trends indicate that over 80% of NatWest’s active current account customers conduct their banking online, with 97% of new accounts being opened through digital channels. While the outage was not attributed to a cyber-attack, it highlights growing concerns regarding the resilience of banking IT systems in light of recent disruptions experienced by other major retailers. Furthermore, NatWest has reported the highest duration of service outages among UK banks over a recent period, totaling 194 hours across 13 incidents, which has led to significant compensation payouts to affected customers. The situation underscores the critical importance of reliable digital banking infrastructure as customer reliance on these services continues to grow.

TruthLens AI Analysis

The recent news about NatWest’s app outage highlights a critical issue facing major banks in the UK and raises questions about their dependence on technology. The incident underscores the challenges that both institutions and customers face in an increasingly digital banking environment, where IT failures can have far-reaching consequences.

Customer Impact and Response

NatWest's apology and acknowledgment of the problem indicate a recognition of the disruption caused to its customers. With over 10 million users relying on the app for daily banking, the inability to access accounts could lead to significant frustration. The bank's suggestion to use alternative banking methods—such as online banking or visiting branches—shows an effort to mitigate customer inconvenience, yet it also highlights the bank's push towards digital solutions while simultaneously closing physical locations.

Context of Increased Scrutiny

The outage occurs amid heightened scrutiny regarding the resilience of financial institutions’ IT systems, especially given the recent spate of cyber-attacks on various retailers. This context can amplify concerns among customers about the security and reliability of online banking services. Although NatWest clarified that the outage was not linked to a cyber-attack, the situation is exacerbated by the backdrop of previous incidents that have led to customer dissatisfaction and financial ramifications for banks.

Broader Implications

The trend of closing branches while pushing for digital banking raises questions about access and equity for customers who may not be comfortable with or able to use technology. It also points to a growing reliance on technology that could be precarious if not backed by robust systems. This situation could lead to public outcry regarding the quality of service and reliability of banking institutions.

Potential Market Reactions

From an investment perspective, the reliability of a bank’s IT systems can directly impact its stock performance. Any continued outages or failures could lead to decreased customer trust, potentially influencing NatWest’s market position and stock value. Stakeholders may be more cautious about investing in banks that demonstrate vulnerability in their technological infrastructure.

Public Sentiment and Trust

The article may aim to foster a sense of concern among the public regarding the safety and dependability of their banking services. By discussing the outage in detail, it may inadvertently rally customers around the need for improved service and accountability from their financial institutions. The language used is sympathetic yet emphasizes the inconvenience caused, which could resonate with customers who feel let down by their bank.

In summary, while the article reports on a specific incident affecting NatWest, it taps into broader themes of technological reliability and customer trust in the banking sector. The news hints at the fragility of banking services in an increasingly digital world and the need for institutions to address these vulnerabilities proactively.

Unanalyzed Article Content

Source URL: https://www.theguardian.com/business/2025/jun/06/natwest-apologises-to-millions-of-customers-locked-out-of-app

NatWest has apologised to millions of customers locked out of its app in the latest IT outage to hit a major UK bank.

The high street bank said it was investigating a problem caused by an update to the app that was rolled out late Thursday, leaving customers unable to access their accounts through the app since just after 9am on Friday morning.

It will be disruptive to the more than10 million customers who use the NatWest banking appto access their account every day.

The lender said its other services – including card payments, in-branch, online and telephone banking – were operating as normal.

A NatWest spokesperson said: “We are aware that customers are experiencing difficulties accessing the NatWest mobile banking app. We’re really sorry about this and working to fix it as quickly as possible. Customers can still use online and telephone banking, or visit a branch.”

The app outage comes at a time when NatWest, like most high street banks, is pushing more customers to its online app while shutting branches.

NatWest is due to close 53 more branches throughout 2025, leaving it with 431. The bank said last month that more than 80% of its active current account customers were doing their banking online, while 97% of new accounts were opened digitally.

While the outage was not linked to a cyber-attack, heightened attention is being paid to banks’ resilience after a spate of attacks that have disrupted retailers including Harrods, Co-op and Marks & Spencer.

Banks’ IT systems have come under increased scrutiny in recent months, with customers at Britain’s largest banks and building societies suffering the equivalent of more thanone month of IT failuresbetween January 2023 and February 2025.

Those figures did not include the full impact of an outage at Barclays that startedat the end of Januaryand affected 56% of online payments during the crucial payday period for many employees. It expects to pay a total of between £5m and £7.5m in compensation to customers for “inconvenience or distress”. There has been further disruption at Barclays since then.

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NatWest racked up the most time lost to outages over that period, amounting to 194 hours, through 13 incidents, for which it paid out £348,000. HSBC paid out £232,697 to its customers after 32 incidents led to 176 hours of disruption.

Last week the UK governmentsold its final sharesinNatWest Group, ending 17 years of state ownership since the £45bn taxpayer bailout that saved the bank – formerly known asRoyal Bank of Scotland– from collapse at the height of the 2008 financial crisis.

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Source: The Guardian