Xero, the small business platform, recently announced the coming launch of its open banking API, aimed at enabling banks, fintechs and financial institutions to offer their customers faster access to bank feeds.
The API, available soon, lets banks integrate with Xero’s platform and as a result, data can be imported via direct bank feeds, allowing for near real-time reconciliation in Xero. This direct access to the feeds, via the API, will allow small businesses to have up-to-date data without requiring major reworking by accountants.
By using the new API, Xero aims to give financial institutions the ability to provide new experiences in lending and payments for their small and medium-sized enterprise (SMEs) customers, thus moving beyond the traditional transactions space. As more information is made available about a business through the use of the API, banks and lenders can use this to make better informed lending decisions.