Cloud accountancy software player Xero has signed a deal with US bank Wells Fargo to integrate financial transaction feeds for clients.
Wells Fargo says Xero is the first major technology company to help the bank create a more customer-focused model of sharing the data of common customers with other companies.
“In an era of increasing concern about the security of electronic financial data, it is time to move toward more secure and more reliable data exchange methods,” says Brett Pitts, head of digital for Wells Fargo virtual channels.
Wells Fargo serves more than three million small businesses and one in three households in the US.
The deal is a milestone for Xero in the US and its global growth plans.
Xero, a New Zealand-founded and ASX-listed company, has 717,000 subscribers around the world. North America is the company’s fastest growing market with more than 62,000 subscribers.
“Together with Wells Fargo, we will help small businesses capture a true picture of their financial standing and empower our mutual customers to better access financial services, giving them greater control over their data,” says Xero CEO Rod Drury.
“We believe this will fundamentally rewire how small businesses operate, and light a fire in the engine room of our economies.”
Xero last month posted a 67% rise in full-year revenue to NZ$207 million and added more subscribers than in any other year.
Drury says the financial web is the very important connection between secure bank feeds and accounting.
“It enables small business owners, working in the cloud, to do their bank reconciliations on their mobile phone while riding the train into work, or capture a real-time view of their cashflow ending the monthly stress of catch-up,” he says.
In the US, Xero has relationships with Silicon Valley Bank and City National Bank. It also integrates with Paypal and Stripe.
In the UK, the company has five of the top six banks already running direct feeds , giving coverage for more than 90% of small businesses there.
In Australia, Xero has connections with 50 Australian financial institutions.