Integrating Banklink data
Depending on the method used, there can be risks, points out Richard Reese, General Manager Operations for Banklink in a recent NZ Business magazine article.
There are two methods used to electronically source bank data, one is much riskier and less reliable than the other.
One method requires the business-account holder to provide their internet banking login details to a third party - usually based offshore. The third party then regularly logs into the business's bank account and "scrapes" its transaction data which is then provided to the software provider.
Bankers are warning that if you provide a third party with your login details then you may be breaching the terms and conditions of operating your bank account and be liable for any fraud which occurs on your account.
There are alternatives which are more secure and reliable. A firm such as Banklink will enter into a data supply agreement with each bank or financial institution, meaning that the whole process is carried out with their approval and involvement.
To enable this process you are required to give your bank permission to supply a 'read only' copy of your transactional data to Banklink, who then provide it to your accountant. As it is read only data there is no risk of anyone carrying out transactions on your account.
Banklink currently supplies bank data for more than 300,000 business owners in New Zealand, Australia and the UK. Many of our clients are using Banklink to remove the manual process of recording their bank transactions.