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Integration with UK OpenBanking APIs

Started by Joseph Heenan in Feature Requests | Idea

In January 2018, (at least) the largest 9 banks in the UK will be making available APIs for both access to transaction data and for initiating payments (amongst other things).

The technical specifications for these APIs are already available here: https://www.openbanking.org.uk/read-write-apis/

There are further EU regulations (PSD2) that means these same APIs (or very similar ones) may also be adopted by other UK banks, and as well as those in other EU countries.

This will allow Xero to implement free reliable bank feeds for at least the following UK banks:

Barclays plc
Lloyds Banking Group plc
Bank of Ireland

Bank feeds implemented in this way would also be able to update (on demand) in real-time.

This also means it'll be possible to setup bank feeds without needing to deal with posting paper forms.

It also opens the doors to other features (eg. scheduling payments for expense claims automatically with the bank without leaving Xero).
Best Reply as chosen by Joseph Heenan (Original Poster)
This is what I got back from my account manager:
Hi Haider,

So bit more complicated than I hoped, from what I understand we won't know the answers until each bank has entered into a dialogue. Which also means it will be a case by case basis.

We will be able to connect to any of the 9 banks we don't already have a feed for. The big improvement will be the connection process for customers as this will be digital ie no more paper forms! This will be similar to the two feeds that have recently gone live with HSBC and Santander.

The Open Banking legislation only requires banks to provide current account data although account coverage will improve over the next 12 months with PSD2 arriving. This means that some of our existing bank feeds may provide better account coverage so customers will stay with these until parity is reached with Open Banking.

The first bank we will look to connect to using Open Banking will be Lloyds as we don't currently have a feed with them. We hope to deliver this before the summer but it will depend on our application to become an AISP.

All in all, I get the second point. News on Lloyd's is definitely good... But disappointed that Xero has delayed the progress until the D day considering registration has been open for months.

Haider Ali