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 Darren here or on 01634 731390.
The content in this blog is correct as at 8th August 2019. See terms and conditions.