In light of recent events like the Marks and Spencer data breach and frequent banking system outages, many people have become more cautious about relying solely on digital money. However, our society is increasingly moving towards a cashless economy, making it essential to be prepared for potential online banking disruptions and understand your rights.
One key step is to withdraw some cash from your bank and keep a portion equivalent to a couple of weeks’ expenses in a secure place at home, like a fireproof box. This cash reserve can be used for immediate payments such as groceries or reimbursing someone who covers expenses on your behalf during a banking system downtime.
It’s advisable not to withdraw your entire savings but rather keep an emergency fund in case of account issues like freezing due to fraud investigations. Additionally, spreading your money across different banking groups is crucial, especially if you have over £85,000 in one account, as the Financial Services Compensation Scheme guarantees only up to that amount per banking group in case of a bank failure.
Maintaining multiple current and savings accounts across various banks can provide emergency access to funds for online transactions if one banking group faces disruptions. Monitoring your account balance regularly and keeping records of transactions can help you track missing funds or unauthorized activities, aiding in the recovery process if needed.
In the event of banking IT problems, accessing your accounts via the bank’s website can be an alternative if the mobile app is affected. It’s also wise to have your bank details stored securely for easy access in case of a lost or stolen phone, enabling you to freeze accounts promptly and visit a branch if necessary.
Being proactive by notifying recipients of upcoming payments during a banking outage can help mitigate potential issues like late fees or missed payments. If you experience financial losses due to digital banking problems, your bank should reimburse any fees incurred, including overdraft charges resulting from delayed salary payments.
If you encounter additional complications such as missed work or significant delays because of a banking IT glitch, lodging a formal complaint with your bank detailing the financial impact and desired resolution is recommended. If the bank fails to address your concerns adequately, escalating the matter to the Financial Ombudsman, an independent mediation body, can lead to a fair assessment and potential compensation based on the evidence presented.