Pandle, Open Banking, and Bank Feeds

The next stage of the Open Banking Regulation is coming into effect on 14^th September 2019, which means an update to the rules on the way that bank account information is accessed and shared.

It’s had an effect on what some bookkeeping software providers are able to offer. But, we’re glad to say that here at Pandle, our full array of Bank Feeds will still be available to our users.

But what does it all mean? Well, we believe in making things refreshingly simple, so read our guide to Open Banking, Bank Feeds, and what it means for accountancy software like Pandle.

What is Open Banking?

Open Banking is basically the UK version of the Payment Services Directive (known as PSD2).

PSD2 is a piece of European legislation which forced banking institutions to share customer data, if the customer gave them permission to do so.

Open Banking is the bit of the rules which says they have to do so in a standard format; a sort of ‘universal language’. Like the name suggests, it’s designed to make banking more open.

Why is Open Banking useful?

There are several reasons why Open Banking is considered important.

Open Banking is a secure way of transmitting data

With so many horror stories about scammers stealing bank details, the thought of Open Banking might be a bit troubling.

Well, with Open Banking, bank customers can actually choose to share their account information with another financial body who has been vetted by the Financial Conduct Authority (FCA) and is compliant with Open Banking rules. This way, customers can be reassured that their data is being securely transmitted, and to a reliable organisation.

As well as sending data, it can be used to make payments straight from a bank account, too.

It’s easier to shop around with Open Banking

Sharing financial information used to mean the customer either supplying unverified figures, or going to the time and effort of obtaining bank statements.

Through Open Banking, customers can temporarily share verified figures with authorised providers (with less hassle).

So, for example:

Open Banking makes it easier to manage money

Having everything in the same ‘language’ allows customers to make the most of software which can pull information from multiple sources, all into one place. Someone with two separate accounts, in different banks, could use this to monitor their finances much more easily.

It’s similar to how some of our business services work. In Pandle we have a feature called Bank Feeds. This automates the process of importing transactions from our users’ bank accounts into Pandle, which is less time consuming than entering the information manually. These automated bank feeds also reduce the potential for data entry errors.

With our Bank Feed Balance Check users can also compare their bank balance in Pandle to their actual bank balance, to ensure there are no discrepancies which could lead to errors in their bookkeeping. It’s essential for accurate bookkeeping and managing cash flow.

Learn more about using Pandle to make business accounting easier. Create an account today and decide what to do with all the extra time you get back.