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 information robotically flows into our software program. These financial institution feeds assist streamline reconciliation and provide higher visibility of money circulation, 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 advanced, and just lately we have now had some points which have impacted the reliability of our UK financial institution feeds.
We clearly wish to repair this, and quick. We’ve lots of people engaged on this right here within the UK, alongside our banking companions, integration companions, and colleagues at Xero HQ. At the moment, I needed 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 better management of their information. Consequently, companies can share their financial institution transaction information securely and electronically with corporations, together with Xero. No extra drudgery filling in varieties 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 test with Making Tax Digital guidelines. In time, it is going to be transformational. But it surely has been removed from painless, and the trade has skilled rising pains as all of us adapt to the necessities.
A brand new method 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 information on behalf of shoppers, with their consent. This quickens the method to attach your checking account to your Xero subscription, and means we will present financial institution feeds at no further value.
Nonetheless, the change meant we would have liked to construct connections to these APIs in a method that saved our prospects’ information safe. Given the excessive variety of banks within the UK, this has meant that almost all corporations like Xero who needed to benefit from 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 would have liked 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 totally different. We’re genuinely sorry for any issues this may increasingly have brought about, 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 powerful. We’ve greater than 70 banks linked to Xero and we are going to proceed including extra financial institution feeds on a regular basis, which we are going to preserve you posted on.
The continued challenges we face (and can all the time face)
Whereas we’re very assured in terms of the migration to Tink and the steadiness of that connection, the truth is that each Tink and Xero additionally rely on the standard of particular person banks’ APIs.
In lots of instances, some banks have taken their APIs very critically and have invested in them. In different instances, banks are nonetheless going through their very own expertise or funding points. We’ve no management over these banks or their timelines for fixing any points on their facet, reminiscent of 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 typically out of our arms. We want all banks to take Open Banking and the standard of their feeds critically. As a part of this work, we’re preventing arduous for modifications that may 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 turn out to be somewhat simpler. The Open Banking Implementation Entity is now scoping these modifications, so we’ll preserve you up to date.
We’ll get this proper
Our work on this continues. It’s an enormous precedence for us and we’re placing all our assets 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 have now 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 while you expertise points, so we will examine the foundation trigger, present suggestions to our banking companions on the size of those points, and struggle in your behalf. You may as well try our Xero financial institution feed standing web page for updates on recognized delays, and data on when Xero, Tink or our banking companions count on to implement a repair.
To prospects in Eire
Since Brexit, our UK FCA licence may now not be ‘passported’ to different EU international locations, and we have been compelled to show off our financial institution feeds in Eire — which we’re actually 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 have now 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 precise timings, however we’re very hopeful this may 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 supplies you with some context across the ongoing challenges with our financial institution feeds. I’ve little doubt that in time, the long-term aim of Open Banking — to offer customers possession and management of their information — will turn out to be a actuality.
