After concluding there wasn’t enough competition in the banking sector, the Competition and Markets Authority (CMA) ordered the nine biggest banks by customers (the CMA9) to allow third-parties access to their data.
This, according to advocates of Open Banking, hands this data from the bank over to the consumer, allowing a personal customer or small business to share their data securely with other banks and third parties. The aim is to make it simpler to control and manage your funds, compare products and use the data to more easily access financial services like loans.
The PSD2 directive that brought in the Open Banking epoch came and went on 13 January, and although change has been slow the first ideas and products are beginning to emerge.
But what is the role of the accountant in all this? And how will it affect the way firms are run? Isn’t there a risk that if tech firms hive off a lot of the low-end tax work accountants will lose control?And as a professional, is increasing the risks to clients by moving away from ‘safe’ banking incumbents in favour of startups a good move? Do we risk a tech wild west?
To discuss this AccountingWEB editor Tom Herbert was joined by Dr Louise Beaumont, co-chair of the techUK Open Banking working group, Paul Windmill, director of accounting firm Myers Clark, and Tim Fouracre, formally of Clear Books and now founder of CountingUp, a new fintech startup founded with the aim of merging business banking and accounting software.
The podcast panel address the questions raised above, as well as many others in an action-packed 20-minute discussion, which you can listen to by clicking the play in the window at the top of this page, visiting our Soundcloud page or subscribing to this podcast via iTunes, aCast, Soundcloud or your podcasting app of choice.
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