Open Banking and PSD2
What is Open Banking and PSD2?
Open Banking and the second Payments Services Directive 2 (PSD2) are separate legislation changes that have been introduced in phases from 2018.
From 14 September 2019 the way your accounting software connects to your bank account transactions data, through bank feeds, may change depending on whether they are using services like Yodlee or are already using compatible feeds.
The UK regulator the FCA, has provided a six month adjustment period, which means that UK banks can continue to allow customers to use Yodlee bank feeds from 14 September until 14 March 2020.
What are the benefits of Open Banking?
- Open Banking drives competition within the bank industry to give you more choice and more control of your data.
- These new connections give you faster access to bank and payment information.
- You will gain significantly better security when conducting transactions online or connecting to your bank data through accounting software.
How will my Bank Feeds change?
There are three scenarios that depend on the bank you connect with and if their connection is ready for the changes.
Your connection is Open Banking (PSD2) ready and you can continue as normal
Your connection is not yet ready for Open Banking (PSD2) but your feed will continue to work until at least March 2020
Your connection is not yet ready for Open Banking (PSD2) and your feed will stop working on 14 September 2019
How can you check if your bank is compatible with Open Banking?
Each of the three main bookkeeping applications we support have produced methods for their customers to check bank feed compatibility with Open Banking. Please see these methods below:
