Better bank feeds, better client outcomes

If you’ve ever spent days chasing a client to get their bank feed connected, navigating paper forms, waiting days for approvals, or accounts that simply aren’t compatible — Open Banking changes that entirely. For accountants and bookkeepers, it’s the biggest improvement to bank feed setup in years. Connecting a new bank account now takes minutes, is entirely digital, and works with more banks and account types than ever before.

But the immediate time savings are just the start. Because Open Banking is built on a standardised API, it opens the door for future develop of features that simply weren’t possible before — like a running bank balance, 12 months of historical transaction data, and richer transaction detail. Open Banking is already available for some new customers in Australia. As MYOB’s Open Banking continues to launch, we’re looking at how it works, the benefits for users, and how to get your clients ready.

Here’s what you need to know:

The ins and outs of Open Banking

Why is Open Banking such a game-changer? It takes a process that has been slow and inconsistent, and turns it into something sleek, modern and user-friendly. It’s also regulated by the Australian government, which means there are clear rules and recourse if something goes wrong.

The process works like this. Customers give permission for their banking provider to share data with third-party software providers like MYOB. The bank transfers data through an approved API to an accredited data recipient (ADR), which may be the banking provider. For example, MYOB’s Open Banking connections are powered by Mastercard’s accredited open finance platform. The ADR manages the API and the transfer process.

All parties involved, including the bank, ADR and software provider, are required to follow rules around security, data privacy, explicit consent and the type of data shared. Customers can only grant consent for a set period, and they can revoke it at any point.

It’s a system set up with transparency, control and consistency in mind.

Where does the CDR fit in?

Open Banking falls under the Australian government’s Consumer Data Right (CDR) framework, which is designed to help consumers share sensitive data with third parties across a range of sectors. It’s strictly regulated by the government and is already well established in banking and energy, with more sectors moving towards the framework.

What do all these technical details mean for you and your clients? They’re about flexibility in your choice of financial services, a reliable flow of data, and security you can trust. It’s a modern process that represents a real step up from previous bank feed methods.

Comparing traditional bank feeds and Open Banking

While Open Banking is relatively new, bank feeds have been flowing into accounting software for years, including MYOB. However, many current feed systems aren’t perfect, with delays, inaccurate data and the need for manual workarounds.

Here’s why Open Banking solves many of those security issues — and more.

Fast, simple setup

Classic bank feeds rely on banks’ own rules and processes, which can mean a long, complicated application procedure. Depending on the provider, applicants may wait 10+ business days for approval. With Open Banking, accredited providers can often gain access to accounts or credit card data in just a few minutes.

• Benefit for your practice: Connect a new client’s bank feed in under five minutes; fully digital, no paper forms, no waiting. That’s time back in your day from the very first client onboarding.

• Benefit for your clients: Offer a quick, straightforward setup process.

Reliable data flow

Traditional bank feeds are built on individual agreements with each bank, which means any change on the bank’s end — a system update, an API change, a shift in access terms — can disrupt the feed. The result is missing transactions or a lag in data that’s hard to diagnose and slow to fix.

Because Open Banking involves direct sharing through a standardised API, it’s less vulnerable to these issues. Clients get regular feed updates, with reliable, up-to-date data.

• Benefit for your practice: Gain a clear, accurate picture of your clients’ financial position and spending.

• Benefit for your clients: A reliable flow of data means accurate financial data with no missing pieces.

Stronger security comes standard

Security is a core element of the CDR and Open Banking. Providers must meet guidelines around data privacy and security, and can only use accredited data recipients and standard APIs. MYOB’s Open Banking connections are powered by Mastercard’s accredited Open Finance platform, meaning the ADR layer meets the highest security standards.

In contrast, older bank feed methods are only as robust as each provider’s internal security rules, with no external regulations for safe data transfer.

• Benefit for your practice: Give your clients a secure data transfer method that they can trust.

• Benefit for your clients: They control their data, with the ability to limit or revoke access as needed.

Answering your clients’ questions

Whenever a new process rolls out or a new technology reaches the mainstream, users have concerns and questions about it. With Open Banking, those concerns tend to focus on the security risk of sharing data with third-party providers. Customers worry that smaller software providers could have weaker security systems, putting their sensitive business information at risk.

Your clients’ questions tend to fall into two camps: concerns about data security, and concerns about disruption to their current setup. Here’s how to address both:

• Highlight regulations and accreditation

Open Banking is governed by strict regulations that control the type of data shared, how it’s transferred, and who can access it. Providers must be approved and accredited before they can work with your data.

• Emphasise bank-grade encryption

Open Banking runs on standardised encryption methods, similar to those used by banks and other financial providers.

• Explain the consent and control rules

Customers must give explicit consent before data can be shared, and it can only be shared for a limited time. They can choose to share only some accounts, and can revoke access at any point.

• Reassure them the switch is optional — and on their terms

Classic bank feeds will continue running as normal alongside Open Banking. There’s no deadline, no forced migration, and nothing that changes for clients who are happy with their current setup. If they do choose to switch, the process is quick and fully digital — and they can do it whenever it suits them, not on MYOB’s timeline.

• Help them check if their account is compatible — and ready to connect

Not all bank accounts are currently supported by Open Banking, and coverage is rolling out in stages. Before your client tries to connect, the CDR Ready tool at app.cdrready.com can confirm two things at once:

• Whether their bank and account type is supported by Open Banking

• Whether their nominated representative settings are turned on at the bank level

This makes it the single best first step before starting any Open Banking setup conversation with a client. If either check fails, you’ll know exactly what needs to be resolved before proceeding — whether that’s waiting for their bank to come on board, or walking them through enabling the nominated rep setting in their banking portal.

Introducing Open Banking with MYOB

MYOB is always looking for ways to better support our accounting customers and partners. The shift to Open Banking is no different. As the market shifts toward CDR-driven bank transfers and regulated security processes, we’re excited about giving our customers an updated data-sharing option. Better security, clearer financial insights, more control – the benefits for our customers, and yours, are clear.

Open Banking offers seamless, ultra-secure access to bank data with a minimal setup process. It gives you and your clients reliable daily bank data, making it easier to keep up with transactions regularly. It gives everyone more insight into cash flow and financial shifts, without taking time away from the business.

Before your clients can opt in to Open Banking, they need to do two simple things.

1. Put their ABN (Australian Business Number) into MYOB, in the ‘Business Details’ or ‘Company Information’ section.

2. Set up a nominated representative for the bank account — they can usually do this via the ‘Manage Users’ section of their banking portal before setup can proceed. Note: this step is unfamiliar to most clients and is the most common point of confusion — it’s worth flagging this proactively when you brief clients on Open Banking.

Here’s what the new setup looks like in comparison with our classic process:

A new level of financial connectivity

Open Banking is fast becoming standard for banks and software providers in Australia. It’s easy to see why. Built on government-regulated CDR standards, it delivers faster, more reliable feeds with a setup process that actually works. For your practice, that means less friction onboarding new clients and fewer ongoing issues to troubleshoot.

And there’s more to come. Future enhancements planned for Open Banking include: a running bank balance updated after every transaction (not just once daily); access to the previous 12 months of bank statements for new connections; and richer transaction data including merchant details and historical balances. These features aren’t available yet, but the architecture of Open Banking makes them possible — something the current bank feed method can’t offer.

For your accounting or bookkeeping practice, Open Banking offers a smoother setup and better access to customer data. It’s also a chance to strengthen your relationships with clients, as you help reassure them about the technology and guide them through the setup process.

Want to get started? Find out more about Open Banking here.

Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.

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