‘Open Banking’ is a new regulation designed by the Competition and Markets Authority coming into effect 14th September 2019. In broad terms this means that your bank must let you share your financial information with other authorised providers.
Simply put, with your consent, your bank must forward all information to a third party. This is great for our clients as it’ll mean the bank feed on their Xero will be a direct feed with their bank provider, rather than some that still require a third-party app to access their bank feed data. Since this is going to be a new direct feed straight to your bank, this will also mean less issues with your feed dropping off and constantly having to refresh it.
If you’ve already got your bank feed setup in Xero, there’s a few steps you’ll need to take in order to switch your old bank feed to the new ‘Open Banking’ feed.
Unfortunately, that is the case. Don’t worry though; it’s quite simple. These updates are being phased in as each bank becomes ready for the change.
When it’s time to switch over to the new feed just log into Xero and head to the dashboard. Once there, you should see a notification on your bank account letting you know of the change and notifying you to update the feed. It’s important at this point to double check the last date your bank feed was updated – you’ll need this so the new bank feed starts on the correct date and to ensure there’s no duplicate or missing transactions.
All you’ll need to do is click on that notification and give Xero permission to connect to your bank by entering your online banking credentials.
I wish I could, but I promise we’re nearly there. Under the new legislation this process will need to be completed every 90 days. So once a quarter, head on back to here and follow these steps again. If there’s any changes or updates, we’ll be sure to let you know.
If you use bank rules within Xero, these may be affected, so double check these after you’ve reconnected the bank. Any active credit card feeds will cease under the changes and unfortunately these will need to be imported to Xero as CSV’s.
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