Open banking and upgrade of bank feeds – cloud accounting softwares

Open banking and upgrade of bank feeds

What is open banking?

Open banking is being introduced from 14 September 2019 and this means you can choose to share your bank account information securely and electronically with cloud-based accounting software providers and other related companies.

This was designed to encourage competition in the banking industry, giving you more choice, as well as greater control of your data and how it’s used.

How does this affect me?

If your cloud accounting software is connected to a bank feed, these will no longer be available under the new requirements.

You’ll need to change to a new direct bank feed, where one is available, so that transactions can continue to flow into your cloud software each day.

Service providers (QuickBooks, Xero, Sage e.t.c.) will let you know when to make changes to your bank feeds within your software.

The new feeds will be available for most UK banks and account types by 14 September 2019.

However, some banks will be making feeds available at a later date, so some customers won’t have a feed to connect to straight away.

The new feeds will give you more control, improving the process and making it more secure. Please note, for security reasons, some connections will need to be re-authorised every 90 days.

In the interim, these businesses will need to manually import transactions into their cloud accounting software or wait until a feed is available and backdate transactions.

If you need help with updating your bank accounts within your cloud accounting software in the interim, please feel free to contact us via hello@thetacuk.com