Open Banking to take effect from 14th September 2019
New EU standards are scheduled to take effect on 14 September 2019, giving you more control of your banking data and how it’s used. This will have an impact if you currently have automatic bank feeds set up to connect to your accounting software.
Open Banking means you can choose to share your bank account information securely and electronically with other providers, such as your accounts software. It is designed to encourage competition in the banking industry, giving you more choice, as well as greater control of your data and how it is used.
Use the following link for further detailed information:
Bank Feeds Connected To Your Accounts Software Will Be Affected
The way some banks connect to your accounting software will change. This will affect all Barclays banks and any third party feeds. The third party feed used on Xero is Yodlee feeds and these will no longer be available. Many of them will be replaced by new direct feeds using Open Banking.
Not every account type will be supported immediately, so some banks will not have a feed to connect to straight away, and will be making feeds available at a later date. In the interim, if you don’t have a new feed to connect to, you may need to manually import transactions into your software or wait until a feed is available and backdate transactions. Our support team will be able to assist with manual imports so please get in touch if required.
If you do not change the affected bank feeds by the deadline, your transactions will stop being imported into your accounting software and you’ll lose the benefits of having a bank connection – such as easy bank reconciliations. You may be still able to connect a bank feed at a later date once one becomes available for your bank/account. However, you will need to make sure that you import historical transactions back to the date that your bank feed disconnected, otherwise you will have a 'gap' in your transactions and data.
As part of the new requirements, for enhanced security, you will also need to re-authenticate your bank connection every 90 days. This should be as simple as re-entering your online banking credentials. While this might be a little more admin, it is a new requirement under Open Banking.
If you are not currently using automatic bank feeds with your accounting software, now may be a good time to consider this to enhance the efficiency of your bookkeeping and bank reconciliations. Please contact us to review your current options available to you.