It’s just over three years since Open Banking was adopted in the UK and it has changed the banking landscape. But how has it impacted accountants and their clients? Not only does Open Banking give the client a better understanding of their finances and help them carry out financial tasks with more security, it also provides both the accountant and the client with real time payment solutions that make sure accountants get paid on time and clients budget properly.
Why Open Banking?
Through the Open Banking reforms that were enacted in January 2018, UK-regulated banks had to let customers share their financial data with FCA regulated third party providers. Prior to Open Banking, the financial data of customers was only held by their bank and they had to have faith that their bank was presenting them with the information best suited to their financial situations. By giving customers more control over their payment account data, it was hoped that they would be more financially empowered. A world of budgeting, payment, and banking apps would open up to them and help them understand their finances better.
How Open Banking has impacted accountants and clients
Open Banking has had numerous positive impacts on clients and accountants alike.
Clients are more aware of their finances – One of the big positives of Open Banking is that it can give clients a clearer picture of their finances. Budgeting is not always easy, but apps that gather all your banking information in one place can help clients manage their money.
Increase security – Although the thought of sharing financial data sounds dangerous to some, it is secure and regulated as long as the third party is authorised. Open Banking actually makes certain actions more secure than they were in the past. For example, applying for loans or mortgages, tasks that used to require people to print out bank statements or send pdfs, can now be made safer through secure data sharing.
Get paid faster – Payment apps developed out of Open Banking reforms can make sure accountants get paid instantly for their services because the client is paying directly from their bank account. This is better for the accountant because there is no waiting for payments to clear, but it’s also better for the client because if they know exactly how much they have in their account at any time, so they can budget better and avoid overdraft fees.
Do you and your clients want to benefit from the Open Banking revolution? Try Ordo the innovative real time payment app. With Ordo you can invoice your clients and get paid instantly. It’s completely secure and is regulated by the Financial Conduct Authority. Ordo is also the official payments Open Banking partner with Sage and is available in the Sage marketplace, along with also being fully integrated with Xero and Quickbooks too. This means, Ordo not only makes sure you get paid fast, it also saves you time in your reconciliation process. Find out more about how Ordo can help your business and your clients by arranging a demonstration today.
Ordo is the trading name of The Smart Request Company Ltd.
Ordo removes hassle & headache from payments, making getting paid easy. Ordo means reduced costs, immediate money transfer, automatically reconciled payments, invoice security, and happy customers. We’re FCA authorised (FRN836070), invested in by Nationwide Building Society, the former Faster Payments leadership team & CGI partners.