Arizona Banks Reeling from Major CrowdStrike Outage, Study Reveals

By Matthew Holloway |

Last Friday, a significant CrowdStrike outage caused widespread disruption across Arizona, particularly impacting mobile banking operations. A recent study from Vention, released on Tuesday, highlights the extent of the disruption and points to Arizona’s extensive reliance on mobile banking.

The Vention study, as reported by AZ Free News, utilized Google Keyword Planner to analyze U.S. Google search volumes related to mobile banking. This data helped identify the states most reliant on mobile banking, with Arizona ranking fifth nationally, behind Maryland, New Jersey, Connecticut, and Florida.

Given Arizona’s large population residing in remote areas far from business centers, the reliance on mobile banking is understandable. In other regions, the lack of sufficient physical banking locations has similarly driven mobile banking usage.

Vention’s report underscores the rapid rise in mobile banking due to its convenience and accessibility. According to MarketWatch, nearly 75% of people favor mobile and online banking over traditional in-person methods, a trend that continues to grow.

Marc Karasu, CMO at Vention, remarked on this trend, noting the varying adoption rates across different states. He emphasized the importance of such studies for the banking industry to target their marketing effectively and enhance financial technology education and support.

The recent outage had widespread ramifications beyond banking. According to the Arizona Republic, the incident affected point-of-sale systems at Circle K locations, caused delays and cancellations at Phoenix Sky Harbor International Airport, and disrupted police dispatch and communication systems statewide.

Ken Colburn, founder and president of Data Doctors Computer Services, discussed the implications with AZCentral. He pointed out that the incident might prompt CrowdStrike and other cybersecurity firms to conduct thorough evaluations of their systems. Colburn stressed the need to balance the benefits of interconnected technology with the inherent risks.

CNN reported that this outage, one of the largest IT disruptions in history, is projected to cost Fortune 500 companies over $5 billion in direct losses. The healthcare and banking sectors were hit hardest, with estimated losses of $1.94 billion and $1.15 billion, respectively.

Matthew Holloway is a reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.