Various sources on Twitter this afternoon are suggesting that the IT infrastructure at HSBC has ‘fallen over’, effectively preventing customers from using their debit/credit cards, withdrawing money from cash machines or doing their online banking.
Not being able to purchase goods or access cash is clearly an inconvenience. It can quickly become a serious problem if the issues are not fixed quickly.
We all tend to rely on the immediacy of plastic when it comes to spending money or accessing our cash. Rather than plan ahead, it is very tempting to buy things as we need them or withdraw only enough cash for the next 24 hours.
This episode with HSBC highlights the importance of redundancy and backups when it comes to our cash.
It makes real sense to do two things; have credit cards from more than one issuer (and on more than one network e.g. Visa, Mastercard and Amex) and keep a readily accessible supply of emergency cash.
Doing this means that, if your banking group is unable to provide you with access to your money, you can still buy what you need.
HSBC appears to be suffering IT problems this afternoon. There are other reasons why your access to electronic or real money might be interrupted in the future, including another global financial crisis or a natural disaster.
Being prepared is a key part of Financial Planning. Whilst this usually refers to long-term preparedness, being ready to deal with a financial emergency in the very short-term (24-48 hours) can be just as important.
Photo credit: Flickr/catatronic
