Close form

5 Minute Guide to Open Banking

8 August 2019
Gavin Hooker
Cloud Accounting

New EU standards, due to take effect from 14 September 2019, will change the way some banks connect to your accounting system. To comply with the new requirements, many of the existing bank feeds will be replaced by new direct bank feeds using Open Banking.

What is Open Banking?

Open Banking means you can choose to share your bank account information securely and electronically with companies, such as your accounting system. 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 is used.

By 14 September, all UK banks should have technology in place to allow third parties to access data. Unfortunately, not all banks will be compliant by that date.

What does Open Banking mean for me?

If you have a direct bank feed from your existing accounting system to your bank, you may not be affected – there are some direct bank feeds that will be removed!

If you use an indirect bank feed, via Yodlee, these bank feeds will be switched off from 14 September 2019.

You will need to change your bank feed to the new direct bank feed when this becomes available so that transactions can continue to flow into your accounting system.

If your bank does not have one of these new direct bank feeds, you will need to manually import the bank statement transactions into your accounting system to remain up to date.

What do I need to do?

Most accounting systems will advise you of when to make the change to the new bank feed. These new feeds should start appearing in your accounting system from August 2019 and will be a simple process to upgrade.

Once the new feeds are set up, you may have to review any bank rules you currently have set up in your accounting software as the data fields that these are based on may have changed.

For further information, please contact Gavin Hooker here or on 01634 731390.

The content in this blog is correct as at 8th August 2019. See terms and conditions.

Similar articles

Black, white and orange motorcycle
18 January 2021

Does it make sense to buy a company motorbike?

Postponed VAT accounting starts on 1 January 2021, but what does it mean and what effect does it have to businesses?

14 January 2021

Five top tips to adopt in 2021 to improve your leadership skills

In today’s fast pace business world the need for growth is essential. However doing it on your own is incredibly difficult. Having a strong team around you is key but this can only be created and sustained through strong leadership.

People walking down hill
12 January 2021

Struggling with leadership?

Good leadership principles are there for everyone to take and have been for a long time but even so few leaders fail to implement them. We examine what common errors business owners make and how they can improve their leadership techniques.

Our 3 step risk-free guarantee puts your mind at rest and keeps us on our toes!

FIND OUT MORE
Bryant House - Friend and Grant Chartered Acocuntants and Tax Advisors

Book Your Discovery Meeting

Are you hungry for success? If you run a small to medium size business and you want to grow your sales, increase profitability and pay less tax then you have come to the right place.