RESOURCE CENTRE
The new Open Banking standard will change how banks share data, and how third parties access it. Find out what it means for small businesses and their accountants, and see how you can benefit, with free resources from Xero.
In 2015, the EU adopted a new Payment Services Directive (PSD2), promoting the development and use of new financial technologies. To increase competition and give people more choice, the UK’s Competition and Markets Authority (CMA) subsequently adopted Open Banking.
The Open Banking standard means big banks need to create secure channels for access to bank account data. Put simply, it means businesses and individuals will be able to share their banking data more easily, allowing them to take advantage of cheaper access to capital and financial technology.
Open Banking improves security. When you want to share your data, you’ll never need to hand over passwords or login data to anyone but your bank.
With Open Banking, small businesses will find it's easier to access better financial services including lending and financial management.
Open Banking means your banking data belongs to you. You’ll be able to access a wider range of services, making it easier to look after your finances.
Third parties who want to offer payment services and aggregation of bank data under Open Banking will need to register with the Financial Conduct Authority.
Edward Berks
Director, Fintech & Xero Ecosystem
At Xero, we’ve been delivering on the promise of Open Banking for more than 10 years, bringing security, innovation and connectivity to customers around the world.
Xero connects to seven major UK banks, covering most small businesses. Direct bank feeds provide a flow of transactional data – streamlining bank reconciliations, expense management and cash flow visibility, without third-party tools.
Open Banking promises a future of better financial services for businesses. Today, the Xero finance marketplace already allows subscribers to connect to trusted lenders – using online applications to provide faster responses.
Xero connects to 700+ add-on apps, securely sharing data using its open API. With our growing app marketplace brimming with innovation, subscribers can save time and be more productive using smart tools built to fit their needs.
Don’t know your APIs from your AISPs? Find out what the terms and acronyms used for Open Banking really mean in our glossary.
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