Xero Launches Open Banking API For Accounting, Bringing Faster Financial Data To Businesses With Any Bank
Hong Kong, November 20, 2018 — Xero, the global small business platform, announced at its Xero Roadshow in Hong Kong, the launch of its open banking API, empowering and enabling banks, fintechs and financial institutions to connect to the platform and provide bank feeds faster than ever before for small businesses. Along with this announcement, Xero is partnering with Neat, a provider of fintech services for individuals and SMEs in need of alternative corporate bank accounts, which will be the first fintech in Hong Kong to be integrating with Xero’s API.
This is in line with the Hong Kong government’s recent establishment of the Open API Framework as part of its initiative to drive financial innovation in the banking sector and launch into a new era of Smart Banking. Banks, fintechs and financial institutions can not only connect via Xero’s API to provide bank feeds, but also innovate beyond if they want to.
The launch of open banking API is a significant milestone for Xero. At present, Xero already has partnerships with more than 180 financial institutions globally. These custom-built direct integrations have required specialized development and customization from both Xero and the financial institution.
With the open API, banks and fintechs can now quickly and securely integrate with Xero with minimal development. As a result, automated and high integrity data can be imported via direct bank feeds, allowing for faster reconciliation in Xero. By tapping into the Xero’s bank feeds API, financial institutions will be able to provide new experiences for SME customers beyond just transactions, to lending and payments. This opens up opportunities for banks and lenders to give them a richer, informed view of a business, thereby facilitating a better lending decision, making sure the small business is getting the right product or credit at the right time. This translates to a more optimal customer experience whereby small businesses will have the necessary information they need to make crucial business decisions in one platform.
Small businesses can now sign up to direct feeds from their bank in minutes instead of days and, with bank data flowing into Xero automatically, the time spent manually adding this information to their accounting system is greatly reduced, in addition, time spent reconciling transactions reduces significantly. Having direct access to bank feeds, enabled through the API, will allow small businesses and their advisors to more easily manage cash flow, navigate through tax time, make crucial business decisions and uncover deep insights about performance by having access to up-to-date, accurate data that requires minimal rework by businesses and accountants.
Speaking at the Asia Roadshow in Hong Kong, Xero’s Regional Director – Asia, Kevin Fitzgerald said, “Xero’s open banking API will facilitate a shorter development time for direct bank to Xero connection. This will enhance the speed of banking innovation, ultimately paving the way for a new age of customer intimacy for the banking and financial services sector.”
David Rosa, Co-founder & CEO of Neat said, “Hong Kong has a thriving startup ecosystem and our company is committed to further accelerating the ease of doing business for SMEs that want to put down roots in this market and expand globally. Xero’s platform presented the perfect opportunity for us to achieve this and we’re delighted to be partnering with a company that shares our vision for enabling Hong Kong startups to succeed.”
“This strategic partnership will be a game changer for small businesses. SME owners will now be able to easily and securely understand their financial position, allowing them to improve cash flow, get paid and make payments quicker, and access credit when it is needed,” added Fitzgerald.
Currently, Xero has established banking partnerships in Hong Kong with the Hong Kong and Shanghai Banking Corporation (HSBC) and Development Bank of Singapore (DBS).