Xero have just announced exciting changes to the 90 day reauthentication rule for bank feeds.
Bank feeds automatically import transactions from your bank or financial institution directly into your Xero organisation, eliminating the need to import transactions manually. Once the bank feed has been connected, statement lines appear in your bank account in Xero ready for you to reconcile each day. Xero bank feeds streamline reconciliation and offer better visibility of cash flow. However it can be frustrating that bank feeds have to be re-authenticated every 90days. Last year, Xero amongst others, asked the Financial Conduct Authority (FCA) to change this rule.
The FCA have now updated it's rules around the use of strong customer authentication for Open Banking connections. Once the change has been fully implemented the requirement to re-authenticate will no longer be in place and instead you will only need to re-confirm consent for bank feeds to continue. This means you will no longer have to to rely on your client's login credentials.
Xero are working closely with Tink, their Open Banking provider who are making these changes with each bank and will announcing the timelines for these changes as soon as possible.