Xero has partnered with Plaid, a fintech company, to enhance US bank feeds and improve the connection between business bank accounts and Xero.

The partnership aims to assist businesses in saving time and gaining a clearer view of their financial status. This reflects Xero’s dedication to providing intuitive tools for small and medium-sized enterprises (SMEs) as well as accounting practices, supporting growth in an ever-changing financial environment.

Enhanced Bank Account Solutions

This collaboration brings several benefits to Xero’s users, including a greater variety of bank feeds. With this partnership, businesses will have access to triple the number of bank feeds currently available, enabling more reliable connections with a wider range of financial institutions in the US, such as smaller banks and credit unions.

The initiative also focuses on improving data accuracy and providing insights through Plaid’s support for a portion of Xero bank feeds used over the next year. This will enhance decision-making and offer better understanding of money flow and cash management.

Both companies are prioritizing security by transitioning to more reliable direct bank feeds using OAuth, an open standard protocol that allows users to grant third-party applications access to their resources without sharing their credentials. OAuth connections use tokens built with the bank systems, providing a safer alternative to older methods. Xero will move its existing feeds to OAuth equivalents where possible, ensuring better protection and stability of financial data.

Xero and Plaid are committed to making financial management more precise, enabling accountants, bookkeepers, and SME owners to save valuable time so they can focus on growth, client experience, and overall wellbeing. The new bank feed options will be rolled out in phases beginning late 2025, with clear instructions provided to users during the transition process.