Thoughts on Open Banking?

Has Open Banking changed your operations?

Didn't find your answer?

Morning folks,

With our survey with Iwoca nearly at an end, I thought I would try and get some responses about how the community really feels about Open Banking and its recent changes.

While some hail it as a powerful new tool that has changed the payment landscape dramatically, others remain unconvinced as to its benefits. For those that are currently utilising it in your business, have you found that it has made any real change to your operation, especially now that users are not required to re-authenticate? And for those who haven't considered Open Banking, will you be taking the plunge any time soon?

Cheers everyone

Replies (11)

Please login or register to join the discussion.

By ireallyshouldknowthisbut
06th May 2022 09:33

Reauthentication is still alive and kicking.

I cant really tell the difference between open banking and the previous system for getting bank data into accounting software from a user POV but it does seem more stable, we don't have bank feeds going down as often. Its marginal.

Thanks (0)
avatar
By Winnie Wiggleroom
06th May 2022 09:43

"especially now that users are not required to re-authenticate"

Really? I hadn't noticed, as far as I can see nothing has changed

Thanks (0)
Replying to Winnie Wiggleroom:
avatar
By rmillaree
06th May 2022 10:25

The changes were announced and firms were being chased along by regulators to action the changes asap - facts are nothing seems to have changed for us yet at the coal face - here's hoping thats about to change now " sometime soon"

Thanks (0)
avatar
By rmillaree
06th May 2022 09:50

Sliced bread was good invention i would say open banking is similarly great in theory.

Note "users not now required to re-authnticate" is nonsense - hopefully not long to wait but that ghame changer is non existent at present.

Special mention should go to the shockingly bad customer experience many have trying to use actually open banking with their acountancy software - regulators should demand decent level of "technical competence" here. Eg if there are issues between two parties "authorised" so connect - they should be required to ensure the service works as it should rather than not work with both parties blaming each other and the issues not being addressed so that "it works".

Thanks (0)
avatar
By JamesDS
06th May 2022 10:32

Generally a poor experience, some connections work, some do not and 90 day renewals are a PITA if you're managing multiple businesses.

Paypal is a total disaster. It brings in transactions in originating currencies rather than using it's own conversion to base currency, and it fails to correctly handle fees, so if you reject a payment, the in and out amounts do not match. Do not connect paypal to an accounting tool unless you are prepared to spend a lot of time fiddling with it.

Anyone tried connecting a cryptocurrency hot wallet yet :)

Thanks (1)
avatar
By D V Fields
07th May 2022 10:47

Bank feeds just encourage “reactive” accounting. Whilst there may be a place for that - when you factor in all the problems reported over its use any perceived benefit disappear quickly.

Comma separated variable files gives the user more flexibility especially with higher volumes and less frequency of import.

At least it offers you a choice should you wish to use it.

Thanks (0)
avatar
By Catherine Newman
08th May 2022 12:33

I have turned them off for a client. They can lead to extremely bad issues and take longer to input than the actual figures. You can use your initiative if you start from scratch.

Thanks (0)
avatar
By JD
08th May 2022 17:57

The ones that are suggesting that there are benefits are the profiteering martketers of itc, apps and loans and the like, rather than the professional accountants who are place their clients first

Thanks (0)
Replying to JD:
avatar
By Hugo Fair
08th May 2022 19:13

Based on the responses so far, it looks like those marketers need to avoid any claims that they're propheteering - so sticking to profiteering is probably sensible!

Thanks (1)
By Michael Beaver
09th May 2022 11:24

For people who were already connected to banks via cloud software it hasn't made much difference, other than perhaps being a bit more stable.

We have clients who aren't on software and we use standalone open banking tools such as Armalytix to request electronic bank statements from clients. It's useful for quarterly VAT records, and also getting a whole year's transactions to check that the feed hasn't failed in the cloud software.

It's also useful for those clients who would normally drag their feet getting statements to us, but are happy to press a few buttons on their phone.

I wouldn't say life changing, but it has certainly improved our efficiency in certain use cases.

Thanks (0)
Replying to michaelbeaver:
avatar
By Winnie Wiggleroom
09th May 2022 12:42

michaelbeaver wrote:

We have Armalytix to request electronic bank statements from clients.

Looks like it could get quite expensive?

Thanks (0)