The reliability of UK financial institution feeds

The reliability of UK financial institution feeds 

For greater than a decade, we’ve given prospects the choice to attach their checking account to Xero, so their transaction knowledge robotically flows into our software program. These financial institution feeds assist streamline reconciliation and supply higher visibility of money move, so prospects know the place they stand and may make extra knowledgeable choices about their enterprise.

Nonetheless, among the expertise powering these financial institution feeds is complicated, and not too long ago we’ve had some points which have impacted the reliability of our UK financial institution feeds. 

We clearly need to repair this, and quick. We have now lots of people engaged on this right here within the UK, alongside our banking companions, integration companions, and colleagues at Xero HQ. Right now, I wished to share an replace on our progress and a little bit of context round why, on sure events, we nonetheless face some challenges on this space.

The transition to Open Banking

Open Banking was launched to encourage competitors in banking — giving everybody extra selection, and higher management of their knowledge. Because of this, companies can share their financial institution transaction knowledge securely and electronically with corporations, together with Xero. No extra drudgery filling in types manually and ready weeks for a connection. 

The transfer to Open Banking means companies get a extra correct view of their funds, and keep in examine with Making Tax Digital guidelines. In time, it is going to be transformational. However it has been removed from painless, and the trade has skilled rising pains as all of us adapt to the necessities.

A brand new solution to join with UK banks

Because of Open Banking, banks now have APIs obtainable for regulated software program suppliers like Xero, which permits us to entry transaction knowledge on behalf of consumers, with their consent. This hastens the method to attach your checking account to your Xero subscription, and means we will present financial institution feeds at no additional value. 

Nonetheless, the change meant we wanted to construct connections to these APIs in a means that saved our prospects’ knowledge safe. Given the excessive variety of banks within the UK, this has meant that almost all corporations like Xero who wished to reap the benefits of Open Banking APIs selected a third-party integrator — corporations who specialize in particular person financial institution integrations.

We initially chosen OpenWrks as a technical service supplier to construct these connections, and assist Xero entry the APIs of banks throughout the UK. This required us emigrate to the OpenWrks platform. Nonetheless, shortly thereafter, OpenWrks was acquired by Tink, which meant we wanted to conduct a second large-scale migration solely 9 months later.

As with every expertise migration, points do crop up, and this one was no completely different. We’re genuinely sorry for any issues this will likely have brought on, and thanks on your candid suggestions and endurance. 

The excellent news is that the migration to Tink is now full after six months, and we’re very assured that the expertise is strong. We have now greater than 70 banks linked to Xero and we’ll proceed including extra financial institution feeds on a regular basis, which we’ll hold you posted on.

The continuing challenges we face (and can at all times face)

Whereas we’re very assured on the subject of the migration to Tink and the steadiness of that connection, the truth is that each Tink and Xero additionally rely upon the standard of particular person banks’ APIs. 

In lots of instances, some banks have taken their APIs very severely and have invested in them. In different instances, banks are nonetheless dealing with their very own expertise or funding points. We have now no management over these banks or their timelines for fixing any points on their aspect, akin to bugs or damaged connections. 

We all know it’s irritating, and whereas we’re working tirelessly with the banks to resolve points as shortly as doable, it’s usually out of our palms. We want all banks to take Open Banking and the standard of their feeds severely. As a part of this work, we’re preventing onerous for modifications that can profit our prospects. 

Final 12 months, alongside trade our bodies and different software program suppliers, we requested the Monetary Conduct Authority (FCA) to scrap the 90-day re-authentication rule. The excellent news is that the steps to re-authenticate will change into a bit of simpler. The Open Banking Implementation Entity is now scoping these modifications, so we’ll hold you up to date. 

We’ll get this proper

Our work on this continues. It’s a large precedence for us and we’re placing all our sources into it, working with Tink and banks throughout the UK to enhance Xero’s financial institution feed connections. 

We wish you to have a seamless reconciliation expertise, however we’ve to acknowledge that there could also be ongoing points connecting to some banks’ APIs. Please know that we’re working tirelessly on this — we’re pushing our banking companions in your behalf and supporting a technical repair within the areas we will management. 

Within the meantime, please get assist from Xero Assist or submit a ticket whenever you expertise points, so we will examine the foundation trigger, present suggestions to our banking companions on the size of those points, and combat in your behalf. You may also try our Xero financial institution feed standing web page for updates on identified delays, and data on when Xero, Tink or our banking companions anticipate to implement a repair. 

To prospects in Eire

Since Brexit, our UK FCA licence may not be ‘passported’ to different EU international locations, and we had been compelled to show off our financial institution feeds in Eire — which we’re really sorry about. 

This implies our Irish financial institution feed points haven’t been technical, however associated to monetary authority laws in Europe. To repair this, we’ve included an organization within the EU and are simply awaiting last approval from the regulator to revive financial institution feeds for our Irish prospects as quickly as doable. 

We’re pushing the regulator for actual timings, however we’re very hopeful this can occur within the first half of this 12 months. We’ll talk additional on this very quickly.

Thanks on your ongoing endurance and I hope this gives you with some context across the ongoing challenges with our financial institution feeds. I’ve little question that in time, the long-term aim of Open Banking — to present customers possession and management of their knowledge — will change into a actuality.