Britons are being urged to consider opening a second bank account so they can still access their money if their main bank suffers a cyber attack or major IT outage. The warning comes from Nikhil Rathi, chief executive of the Financial Conduct Authority (FCA), who said households should consider having an alternative banking provider.
FCA Chief Says A Backup Account Could Help
Rathi said having more than one bank account could give customers another way to access their money if their main provider experiences an outage. He told The Times that people should consider whether they have the ability to switch to another provider if their primary bank becomes unavailable.
Rathi also warned that some major technology and cyber incidents are difficult to prevent entirely. The advice comes as financial services increasingly depend on digital systems for payments, account access and card transactions.
Almost Half Of Adults Have One Current Account
According to figures from Kroo Bank, 47% of adults aged between 25 and 64 have just one current account. For those customers, a major disruption affecting their bank could leave them temporarily unable to use their usual account or payment cards.
Having another account with a separate provider could give households another way to make payments and manage their finances during an outage.
Recent Outages Have Hit Bank Customers
The warning follows several high-profile technology disruptions affecting financial services. Last month, Revolut customers around the world experienced problems accessing their accounts during a 10-hour outage linked to a power issue at a Google Cloud data centre in London.
Some customers reported being unable to make payments, while cards were declined at tills during the disruption. The incident highlighted how dependent everyday payments are on the availability of banking and technology infrastructure.
Government Also Wants Households To Prepare For Emergencies
The FCA’s warning comes alongside the Government’s Be Ready campaign, which encourages households to prepare for emergencies that could disrupt normal services.
People have been advised to be able to cope independently for 72 hours during situations such as severe weather, flooding, power cuts, cyber attacks or other major emergencies.
The guidance includes keeping supplies such as food and water at home, along with items including a battery-powered torch, sleeping bags and a wind-up radio. Households have also been encouraged to keep some cash available in case digital payment systems or bank accounts become temporarily inaccessible.
Cyber Attacks Remain A Concern For UK Businesses
The banking warning comes amid a wider series of cyber incidents affecting British businesses and public services. Major retailers including M&S, Asos and the Co-op have experienced cyber attacks in recent years.
More than 30 UK Government websites were also taken offline after a vulnerability was discovered in PHP, a programming language used by a large proportion of websites.
These incidents have highlighted the potential disruption that technology failures and cyber attacks can cause across everyday services.
What A Backup Account Could Do
A second current account does not prevent a cyber attack or guarantee access to money during every type of emergency. It can, though, give customers another banking option if their primary provider experiences a technical problem.
Using a separate bank for the backup account may also reduce the risk of both accounts being affected by the same provider-specific outage.
For households that rely entirely on one current account, the FCA’s warning is a reminder to consider how they would make payments if their main bank temporarily became unavailable.
