How HSBC handled its banking outage

Is a sudden IT outage in your crisis communication plan?

Do you feel prepared to handle the social media outrage and media scrutiny it could bring?

Outages are a hot topic currently.

And even a brief one can cause a reputation hit.

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Let’s take HSBC as an example.

The banking giant suffered a two-hour outage on Tuesday where customers were unable to make simple online transactions.

And it< gained plenty of social media attention.

One user posted: “Happens quite frequently these days. Been with HSBC since 2007 but I think it's time to look elsewhere.”

And another said: “Too late now couldn’t log in to transfer my daughter any money and she was stranded at a train station alone not good enough!!!!

As we stress during our crisis communication and social media training courses, what trends tends to be picked up by mainstream media.

HSBC app and mobile banking DOWN as hundreds left unable to access bank accounts Mirror

HSBC online banking and app down as customers face major outage Express

LOCKED OUT HSBC online banking and app went down as hundreds of customers were left locked out of accounts The Sun

HSBC goes down with users unable to access app in latest banking outage Metro

HSBC back online after two-hour outage which left thousands unable to access online banking services Daily Mail

Part of the reason for the extensive coverage is that bank outages are a current big issue, particularly in the financial sector.

As the Independent’s coverage of the outage said, this incident was “the latest to hit major banks in recent weeks.”

And the Treasury Committee has just written to nine banks and building societies asking for information about the scale and impact of IT failures over the past two years.

Meg Hillier, the committee chair, said: “The rapidly declining number of high street bank branches makes the impact of IT outages even more painful; that’s why I’ve decided to write to some of our biggest banks and building societies.”

HSBC’s problems, no matter how short-lived, help move the banking issues story forward and give it fresh impetus.

So, how did it respond?

The Downdetector website shows a peak of just over 1,700 HSBC outage reports at 3.50pm.

The bank’s first update on the issue came at 4.12 pm – a pretty quick response.

It said: “We’re really sorry that some services are currently unavailable in online and mobile banking. We understand this is frustrating, and our teams are investigating the issue.”

And it continued to provide updates.

At 5pm, it said: “We’re working hard to fix an intermittent issue with Mobile and Online Banking services. Debit and credit cards, digital wallet and ATMs are all working. You can still authorise online card purchases via SMS. We're really sorry, please check back for updates.”

And there was a further update just before 6pm when the outage was resolved.

“Online and Mobile banking services are back up and running following an earlier intermittent issue,” it said.

“Debit and credit cards, digital wallet, and ATMs continue to work as usual. Thanks for your patience, and we’re sorry for any inconvenience.”

We always stress the importance of regular updates during our crisis communication training – it helps to build trust and can prevent rumour and speculation from shaping the narrative.

But what I particularly like is that the updates sound human – “We understand this is frustrating…”, “We’re really sorry…”, “Thanks for your patience…”.

It is clear, simple language that conveys empathy, understanding and warmth. And, in a crisis, that can help build a bridge to those impacted.

IT outages disrupt lives, and anything to do with money can cause anxiety. People want to feel heard and sense the issue is taken seriously.

It’s just a shame a “We’re sorry for any inconvenience” slipped in at the end – we hate that phrase.

But it should not distract from what was overall a good response.

Let’s compare it with how Capital Once initially responded to an outage in January.

It said: “We are experiencing a technical issue with a third-party vendor that is temporarily impacting some account services, deposits, and payment processing for portions of our consumer, small business, and commercial bank.”

Which bank do you feel cares more?

 

Click here to get your free step-by-step crisis comms guide

When a crisis strikes and you are in the spotlight, you must move quickly to protect your reputation. There is little time for planning your responses, fact-checking or ensuring you have covered all the crucial bases. So, when the worst happens, wouldn't it be handy to have a checklist you can follow?

So, what can you learn from this incident?

Here are the key takeaways and helpful tips from our training:

Prepare: Ensure IT outages are included in your crisis media management plan. And test your plan with a realistic scenario.

Acknowledge: Acknowledge something has gone wrong as soon as you become aware. Developing holding statements in advance can help you communicate quickly.

Provide regular updates: A holding statement only holds for so long. Regular updates are needed to maintain control of the narrative and prevent the spread of speculation. Aim for an update every 30 minutes.

Keep it simple: Use simple, clear language in your updates and adopt a human tone. Avoid technical terms.

Care: Show your customers you understand the disruption the outage has on their lives. And apologise.

Don’t over-promise: Don’t make promises you may be unable to keep about when services could return. It is better to say you are working hard to resolve the situation and are investigating the cause.

 

Media First are media and communications training specialists with nearly 40 years of experience.

We have a team of trainers, each with decades of experience working as journalists, presenters, communications coaches and media trainers.

Click here to find out more about our crisis communication training courses.

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