Xero, a cloud-based accounting software platform geared for SMEs, announced the launch of its open banking API in Hong Kong, which would link up banks, fintechs and financial institutions.
Xero has 1.6 million subscribers in over 180 countries including Hong Kong, and a thriving ecosystem seamlessly integrating with 700+ apps.
Neat, an SME-focused Hong Kong account provider, will be the first Hong Kong fintech to be integrating into Xero’s API and partnering up with Xero for their API.
This follows Hong Kong government’s recent establishment of the Open API Framework as part of its initiative to drive financial innovation in the banking sector. Banks, fintechs and financial institutions are able to join Xero’s API to provide bank feeds, and also innovate beyond that if they want to.
At present, Xero already has partnerships with more than 180 financial institutions globally, with the most recent being their partnership with fintech darlings like Transferwise and Revolut. These custom-built direct integrations have required specialised development and customisation from both Xero and the financial institution.
The goal of open banking is to enable banks to securely share their data via direct bank feeds, which could overall help the fintech scene in a region, from financial institutions to fintech startups, to grow the ecosystem together without jeopardising their data.
Currently, Xero has established banking partnerships in Hong Kong with the Hong Kong and Shanghai Banking Corporation (HSBC) and Development Bank of Singapore (DBS).
Open Banking Hong Kong — How Open is Open?