National Australia Bank (NAB) to allow

National Australia Bank (NAB) to allow payments through Xero

The National Australia Bank has made a pioneering move in a step towards open banking. The move will enable business customers to make payments directly through the cloud accounting software, Xero...

Previously, to pay an invoice,

Xero customers would have to log onto the bank, enter the invoice details and then authorise the payment. Now, customers will be able to pay invoices at a click of a button within Xero. This evidently has huge economical advantages to customers, giving them the ability to invest their time elsewhere.

“What we are trying to do here is say let’s step beyond what might be the regulations and actually understand how we deliver real customer value. If that goes beyond what the regulator says, then that’s great,” says Jonathan Davey, Executive General Manager Digital & Innovation at NAB.

Over the next week, NAB and Xero will be meeting with Xero clients on their National Roadshow. They will be giving further details on how this integration will work in practice. In February the software development will move into a closed beta trial before becoming more widely available later in the year.

The deal will see the bank rise as competitors to newer, innovative banks and tech companies, keeping them in the game. Furthermore, they will gain insights into customers financial positions via Xero, which will in turn help NAB to improve their services, i.e. in speeding up the process of loan applications. Mr Davey explains, “We are taking some of the data that currently only exists in Xero

Jonathan Davey, NAB’s head of digital and innovation, with Trent Innes, MD of Xero Australia

and providing a dashboard in our we are trying to do is deepen the internet banking channel,” relationships that we have, and if that means the customer, in some However, some concern has been cases, will perform their banking raised about banks opening through third-party channels, then their doors to ‘fintech’ solutions that’s fine.” (computer software and technology used to support or enable banking and financial services). Jonathan Davey of NAB says, “If the NAB customer is operating in the “If the NAB customer Xero ecosystem is operating in the Xero and we can ecosystem and we can provide value to provide value to that that customer customer by making it by making it easier for them, I can’t easier for them, I see why you wouldn’t can’t see why you do that” wouldn’t do that,” he said. “There are schools of thought that say there is a risk of NAB becoming a utility in that case, but I think what