Tide and Coconut leverage open banking to save self-employed ‘time and money’

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The partnership builds on Tide’s Open Access service introduced last year, which opened its services to non-account holders, allowing small and medium-sized businesses to connect their existing bank accounts to its platform.

Image source: Accounting/Pexels.

SMB challenger Tide and Coconut have signed a deal that leverages the benefits of open banking which the two fintechs say will save “time” and “money” for freelancers and accountants.

The partnership builds on Tide’s Open Access service introduced last year, which opened its services to non-account holders, allowing small and medium-sized businesses to connect their existing bank accounts to its platform.

The agreement with Coconut, a tax and accounting app that helps accountants manage clients of self-employed traders, means that self-employed people who open a Tide business bank account can connect their Tide accounts to Coconut through open banking.

The benefits of this are that they will have access to bespoke software to help them, for example, with financial administration and quarterly tax filings.

Sam O’Connor, Founder of Coconut, said: “While we always encourage independent traders to have a business bank account like Tide, and that’s why we’re partnering up, many don’t yet.

“Coconut works just as well if you’re using a business account as if you’re using a personal account. So you can start today and we grow with you as you formalize as a business.

The fintechs believe that the combination of their specialties, Tide’s business banking services for SMEs and Coconut’s expertise in supporting independent traders with accounting obligations, will prove a hit with accountants and independent traders.

With Coconut’s app, accountants can quickly access their clients’ accounting information, so they can spend less time chasing after paperwork.

For example, sole traders often transact on a range of different accounts, and the Coconut app makes it easy to collect data and simplify their finances.

Last year, Coconut stopped opening new checking accounts and instead doubled its flow of bank statements through open banking.

Coconut has launched a new app as part of its open banking pivot to capitalize on being a banking hub, meaning any freelancer can use Coconut regardless of existing banking arrangements.

O’Connor added: “We’re focusing on accounting and tax tools, wherever people are banking, so it makes sense that we’re focusing on that and leaving banking to be done. others, like Tide.”

Earlier this year, Tide said 1,000 business customers signed up for its Open Access service in just a few weeks, exceeding expectations.

Some analysts have announced that this decision could be a game-changer for open banking.

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