Monzo Builds Backup Bank For Service Disruptions
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Monzo engineers have built a special backup bank that works on its own. This new system, called Monzo Stand-in, helps customers keep using their accounts even if the main Monzo app is having issues. The company said this backup system allows customers to send and receive money, withdraw cash, and freeze their cards when needed.
The banking industry has been facing many technical problems, making it hard for customers to access their money. Regulators and government officials have shared concerns about these issues because more customers now use online banking. Monzo said its new backup system will help reduce these troubles.
UK Treasury Committee Reports Major Outages In Banks Across The Country
A recent report from the UK Government Treasury Committee showed that nine major banks and building societies in the UK had over 800 hours of outages in the past two years. This means customers have faced many days of problems when trying to use their bank accounts.
Barclays, one of the largest banks in the UK, experienced a three-day outage that caused 56% of online payments to fail. The firm said it would give between £5 million and £7.5 million to affected customers as compensation. Many customers expressed frustration as they could not complete important transactions.
In February, some British banks, including TSB, Halifax, Lloyds, and Nationwide had trouble with payments. Customers could not send or receive money, which caused worry and confusion. Monzo said these problems show why a strong backup system, like Monzo Stand-in, is important.
The company said Monzo Stand-in works separately from its main system. It runs on Google Cloud instead of Amazon Web Services, which is used as the primary platform. If the main system fails, Monzo Stand-in takes over, ensuring that customers can still use their money.
Monzo Stand-in Lets Customers Access Banking Services During Outages
The Monzo app regularly checks if the backup system is turned on. If it is, the app switches to a simple version that allows customers to do basic banking tasks. The firm said this helps customers keep control of their money during unexpected technical issues.
A spokesperson from Monzo stated that banking outages are happening more often. The company wants to ensure customers are not left without access to their money. The spokesperson added that Monzo is the only bank with this kind of backup system, allowing customers to continue banking without issues.
Monzo Stand-in was first used in August last year when the bank faced a major outage. Most of its systems stopped working, affecting payments and app services. Monzo said it quickly activated the backup system so customers could use their money without problems.
