At a glance
- Open banking lets clients securely share bank data via authorised software, with improved security.
- Challenges include client confusion, security fears, and inconsistent data formats between banks.
- Request access during onboarding, reassure clients, and recommend trusted, FCA-registered software.
Getting a grip on a business’s digital banking permissions can be a sensitive moment. It often happens under pressure – tax deadlines are looming, for instance, and you need access to prepare a report or arrange payments.
Historically, gaining entry to client accounts was a headache, fraught with security and access concerns. To solve this, the UK introduced open banking in 2018. The goal was to streamline data sharing between clients, accountants, and banks.
What does open banking do?
Open banking is a protocol, a set of rules that allows clients to connect their bank account to financial management software authorised by the Financial Conduct Authority (FCA). That software includes Xero, QuickBooks, or FreeAgent. Businesses using these apps can then invite their accountant into the system. Open banking gives the accountant access to the client’s bank feed within the software, without them having to access the bank account itself.
“Doing this upfront prevents delays and helps normalise access as a routine, secure step.”
Andrea Richards
This has several advantages. It limits the information an accountant can see, reduces the need for them to constantly bother their client, and lowers the risk of frauds both accidental and deliberate. Access is strictly controlled, encrypted, requires explicit client consent, and can be revoked at any time.
Is open banking worth it?
Open banking seems a good bargain for most businesses. Adoption hit a record high in 2025. Research from Open Banking Ltd (OBL) found 13.3 million UK consumers and small businesses actively using the protocol in March 2025 – roughly one in five.
For Kate Hayward, UK managing director at Xero, open banking-enabled digital feeds save time for clients, who no longer have to manually enter data or upload bank statements. It also provides reliable, real-time data on a business’s cash flow, which helps in making better decisions. “Today, we believe the UK has some of the best bank feeds in the world,” she says.
Andrea Richards, a bookkeeper and the CEO of Accounts Navigator, agrees that the UK is ahead of the pack on open banking, thanks to strong regulation and wide integration with fintech tools. It’s a different story elsewhere. “Patchier regulation and lower uptake make similar access far less common, especially where providers aren’t locally registered,” she notes.
Open banking is now available in 69 countries. But others, including the US, lack a government-mandated regulatory framework, In these nations, the bank-accountant-client relationship can be trickier. Without a single declared open banking framework, many US businesses fall back on risky practices. One report found that 32% of US business owners still grant their accountants full, unfettered account permissions. This exposes them to unnecessary risk, including potential violations of their bank’s terms of service.
As Ian Benton, a senior analyst at Javelin, points out, US online banking can offer businesses granular control over an accountant’s access. While this gives them more authority, it can also create confusion, especially for new business owners. The lack of a standardised system puts more responsibility on accountants to communicate best practices for sharing financial information safely.
What are the challenges in getting access?
Open banking is not all smooth sailing, even in the UK. Richards says that full automation isn’t quite there yet. Gaps in standardisation remain, with inconsistencies in data formats, field coverage, and transaction histories that require extra work.
There’s also a notable reluctance to grant third-party access – from clients and, sometimes, from accountants themselves. “Security concerns and client hesitation also continue to slow wider adoption, as many accountants remain hesitant to adopt fully API-based sharing,” Richards adds.
Confusion is another hurdle. A recent NatWest study revealed that 28% of businesses said they hadn’t implemented open banking because they didn’t understand it.
Finally, the data shared via bank APIs isn’t always consistent. Different banks provide different data fields and cover different time spans. “On top of that,” Richards says, “clients use a wide range of internal accounting systems, often leading to incompatible formats.” This means data often needs to be cleaned and standardised before it can be properly analysed, limiting automation and the benefits of audit analytics.
What can you do to improve the process?
Timing is everything, Richards says. She urges accountants not to wait until deadlines are breathing down their necks. Instead, she recommends requesting bank access as part of the standard client onboarding process. This should include:
- getting clients to set up view-only access;
- connecting bank feeds to accounting platforms;
- adding the accounting firm as a user; and
- authorising any open banking tools that the accountant uses.
“Doing this upfront prevents delays and helps normalise access as a routine, secure step,” she advises.
Reassuring clients about security and value is also critical.
Richards recommends making it clear that the process is regulated by the FCA, encrypted, and revocable. And most importantly, accountants need to explain that open banking will lead to more accurate, faster work and better advice. For clients who are less financially confident, visual aids or onboarding videos can help.
Accountants should also recommend that clients use trusted, FCA-registered software with direct bank integrations. This will offer the most reliable connections and the smoothest re-authentication process.
Finally, Richards says investing in team training is invaluable. To make the most of live data, accountancy teams need to sharpen their skills in forecasting, analytics, and troubleshooting access issues.
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