If you use cloud accounting software such as FreeAgent, QuickBooks or Xero, important changes are taking place in September that will affect you.
The open banking initiative runs alongside the EU’s Second Payment Services Directive (PSD2) which came into force in January 2018. The effects of PSD2 are starting to roll out, and if you have a mobile banking app one of the benefits is that you can now add accounts from other banks to your app. For example you can add non-RBS accounts to your RBS banking app so all my accounts are visible one app. This makes it easier to control your finances from the palm of your hand. You can learn more about what open banking is and how it impacts on you – click here.
These changes have a significant impact on the bank feeds in your online accounting software, whether you use FreeAgent, QuickBooks, Xero or another platform. At the moment, the information is introduced by using secure screen scraping technology, with the main provider being Yodlee.
From September, the Open Banking initiative means the bank feeds for your online accounting platform will no longer be by screen scrape, but rather a secure connection between your bank and your online platform. To assist customers prepare for these changes, all of the online accounting platforms have produced guides for their own software. You can find a summary and link below:
QuickBooks online (QBO)
This guide advises that you will need to convert and reconnect a new feed when the change-over occurs for your bank. They will email you when the new feed is available for your bank.
You will need to convert and reconnect a new feed when the change-over occurs for your bank. Your FreeAgent account will flag up that it’s time to change your feed to an open banking feed.
Like QBO and FreeAgent, it confirms the steps required to change over your feed.
All of the main providers that we support, listed above, have resources available to help you with this change and we are always available to provide additional support if required.