[apatters]

Can't stress enough how valuable this is for small business. Auto-importing and auto-classifying transactions from financial institutions completely changes the way that bookkeeping functions. It also gives you real-time understanding of your financial situation and lowers cost/time.

Our accounting software auto-imports all of our transactions daily via the Plaid API and our classifying ruleset categorizes 95% of them automatically. All that's left for our bookkeeper is to spend a few hours a month going over the unusual ones and doing some general accuracy/sanity checks. In addition we get dynamically generated reports every week which are ~90% accurate. Prior to these features the model was "bookkeeper manually imports a bunch of transactions from multiple sources and does a ton of work at the end of each month and produces one monthly report." Automation here has been a huge win, lower costs and better results.

As much as I appreciate and prefer FOSS software I would never go back to the old way of doing things, the last thing a founder wants to spend a lot of time or money on is bookkeeping.

[kkfx]

Personally I hope a day enough people join to push a law that impose banks to have a standard open API (like SEPA OpenBank, witch is mandatory here in EU BUT only open to institutions not private citizens) open to any customer NOT ONLY as read-only but also for disposing transactions to avoid the need of crappy web-banking porcals.

Unfortunately too many use computers every days without even understanding how can they work for their user profit instead of some third parties mostly employing the human customer as a data cow and small-microfinance bank...

[apatters]

If we legally mandate this what will the consequence be for small businesses that can't afford the cost to comply? (Even if you mandate it for only the big players - what if there end up being only three players who can afford it, they do it well, no one else does and you end up with only three banks?)

I'm super supportive of banks opening up their data for the reasons in my prior post. But the second order effects of regulation are often overlooked--this is exactly what has gone wrong in the US financial industry where we used to have thousands of credit unions across the country and since 2008 most of them have been driven out of business by compliance costs. Naturally the handful of banks that remain are the ones that were the biggest and had the best lobbying effort in Washington...

[kkfx]

What "small businesses", the smallest bank I know can afford such change, indeed they already have anything in place because OpenBank is mandatory here, only artificially limited to just business operators. There is no costs for no one else.

[pylua]

There sort of is in the us, (ofx) but it is old and poorly supported. Most banks do not implement the newer versions of it.