Hannah explains how cloud accounting software will accommodate new open banking requirements.
Open Banking is a UK regulation that will change the way financial data is shared and is coming into effect in September 2019. As part of this change, cloud software providers, such as Quickbooks and Xero, are upgrading their bank feed connections.
What is Open Banking?
Open Banking means you can choose to share your bank account information securely and electronically with companies like Quickbooks and Xero. It 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. Due to this legislation, your cloud software provider requires you to give them authority to access your banking data.
What are you required to do?
The change will be available for UK banks in phases. Over the next few weeks, users of cloud software will receive an email from their cloud provider to confirm the date that the new Open Banking feed is available. A banner on the bank feed will also appear.
The steps to follow are simple
When you see the banner appear on the banking page, just click to update your bank connection, which will link to your banking internet page in order for you to input your banking details and once again give authority to your provider. Your bank feed will then continue as normal.
For a small number of banks, if the feed is not updated by 14 September, you will require to manually import your statements however your cloud provider will notify you of this.
As always, should you require any further information on Open Banking, assistance with updating your bank feed, or indeed importing your bank statements if this is required, please do not hesitate to contact us.