Open Banking bank feeds coming soon

Last updated: 26th June 2019

Open Banking is set to modernise the banking and accounting industries with seamless integration between the UK’s largest banks and software providers.

FreeAgent is at the forefront of this change, uniquely placed to help your practice and many of your clients get the most from the enormous opportunity that Open Banking presents. To ensure all our accountant partners are up to speed with Open Banking, here’s a quick roundup of what you need to know and what to expect in the coming weeks.

What is Open Banking?

Open Banking was set up by the Competition and Markets Authority (CMA) in order to create more competition in the financial marketplace. The largest banks and building societies in Great Britain and Northern Ireland must allow regulated businesses to access their customers’ financial data - as long as customers have given their permission.

Open Banking only covers payment accounts, so certain account types such as fixed rate savings and ISAs won't be included. Customers are in control of which businesses have access to their account data and for how long. Every provider that offers products and services that use Open Banking must be regulated by the Financial Conduct Authority (FCA) or European equivalent.

Accounting software providers with the AISP FCA registration - like FreeAgent - will be able to import up-to-date banking information directly into the accounts of your consenting clients who bank with one of the participating banks. Non-AISP registered software providers will have to use AISP-registered software to act as a medium between their software and the Open Banking platform.

What are the benefits for you and your clients?

As an AISP-registered accounting software provider, FreeAgent will allow you to offer relevant clients an unprecedented level of integration between their banking service and accounting software. Not only will this provide your clients with an easier way to stay on top of their bank reconciliation, it will also give you access to your clients' most up-to-date banking data every single day!

Instead of chasing clients for their data or waiting for third-party bank feeds to update, you’ll be free to focus on providing value-added services to your clients while they go about their daily business. Meanwhile, you’ll be safe in the knowledge that their bank transactions are being sent to you accurately - and automatically - through FreeAgent.

As technology and legislation continue to move forward to bring both industries into the digital era, this is the kind of solution that clients will soon come to not only expect, but demand, from their accountants.

What will change in FreeAgent?

We have quietly gone live with Open Banking for all relevant client accounts as part of a soft launch, which will continue over the next few weeks. If you have clients who bank with one of the participating banks, here’s what to expect:

• Clients linking their bank feed to FreeAgent for the first time - Open Banking is now available for these clients. The setup process is very similar but these clients no longer need to integrate via a third-party provider. They’re able to link their bank account directly to FreeAgent.
• Clients with existing bank feeds - these clients will need to switch from their current bank feed setup to Open Banking. FreeAgent has worked hard to make this process as simple as possible and the software will guide them through this, but not for a few weeks. You will receive an email in advance of this happening. In the meantime, feel free to familiarise yourself with the bank feed switch process.

For clients who do not have accounts with the participating banks and are not currently eligible for Open Banking, there is still the option of connecting their bank feed through our third party bank feed provider.

Our Knowledge Base now has a section dedicated to bank feeds, including information to help your clients set up a bank feed for the first time and help clients with existing bank feeds switch to Open Banking.

Consider speaking to your clients who bank with one of the participating banks about the opportunities Open Banking provides.