Home » Xero Accounting Software Blog » Nab Joins With Xero To Speed Up Business Loan Approvals

Nab Joins With Xero To Speed Up Business Loan Approvals

March 24, 2021
Bill Kimball

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So if you have any missing transactions around this period, these will need to be manually imported. Even worse, Xero doesn’t flag that the bank feed statement balance does not match the transaction balance. If I look at the Bank Statements tab, and select to show “Statements”, the Statement shows the correct balance.

Your business must be registered for GST and have a turnover of at least $75,000 p.a. Any shareholders of companies listed in the application must be individuals, and not companies. This loan is only available for sole traders, business partnerships with 2 or less individual partners, companies with 5 or less directors borrowing in their own right or an eligible discretionary trust. It is not available for joint borrowers who are not partnerships, or partnerships where one or more partner is a company. You need to be at least 18 years or older to apply and hold Australian citizenship or permanent residency. Instant answer online and funding subject to credit assessment and verifications. For the NAB Vehicle & Equipment Loan we use the asset itself as the security to provide you with competitive rates.

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NAB and Xero are on a national roadshow this week to brief Xero customers on the innovation, ahead of a closed beta trial in February and roll-out to the broader market mid-year. A DBM Consultants survey released last week found NAB has improved its business satisfaction rankings in recent months. Xero is also in discussions with insurer CGU, which is understood to be interested in payroll data captured by Xero to better assess workers’ compensation premiums. Facebook has banned the sharing or viewing of our news articles on its platform. For independent journalism straight from the source, download our app and sign up to our newsletters. Craig Kelly will only support a freeze to the super guarantee if it included a mandated pay rise.

If you’re using your online bank portal to make single payments to suppliers, their account details are kept in a separate database operated by the bank. If you’re doing batch payments through your accounting software, you need to update changes to bank accounts in two locations. Xero NAB Payments is set to be a game changer for accounts payable thanks to a more automated process that sends payment instructions directly from Xero to Australia’s largest business bank. Now payments originate in the accounting software, and approval status transmitted via API, your accounting software is another step closer to becoming a real-time record of your bank balance. For example, businesses often have scheduled payments for rent, wages and other recurring payments in your online banking portal. Aside from reducing fraud, accounting software companies can innovate in payments much faster than the banks can. NAB will pay Xero a small commission for any referrals from the accounting system to the bank.


You can simply send the bill payment instruction from Xero to the linked eligible NAB account, then the authorised NAB account approver can approve the payment in the NAB mobile app. Your Xero account is only as powerful as the information you put in and NAB offers the best range of bank feeds with over 35 NAB account types, including credit cards. Once reconciled, you’ll get a daily up to date view of your business cash flow. Simply connect Xero with NAB Internet Banking and you’re set. NAB and Xero have invested significant time and resources to create a simpler, faster and more secure way to send payment instructions. We think it’s great value when you consider the time savings and security, but we recognise that some customers will opt to continue uploading ABA files. Simply put, Xero NAB Payments enables small businesses to pay multiple bills quickly, seamlessly and securely.

Also, I recommend filtering your transactions in NAB internet banking for INTNL TRAN FEE so you only import the missing fees. We’ve collaborated with Australian Owner Manager to offer our business banking customers a limited number of partial scholarships for an exclusive business course for mid-sized private companies. Discover what unsecured business finance is and how to apply for it online. This loan is only available for loans which are wholly or predominantly for business purposes.

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Connect Your Feeds To Your Xero Organisation And Inputted Bank Accounts

Presumably this is because NAB is receiving the instructions as if it were the batch payment file. Xero businesses in the UK can pay their bills via fintech company, Transferwise. You can register for the beta herein the form at the bottom of the page. (Xero will launch the feature later in 2020.) However, there are three clear differences between the Transferwise and NAB versions.

nab xero

But in Europe, open banking will allow third parties to make payment instructions. The Reserve Bank has suggested that Australia could ultimately move in that direction.

A bookkeeper can now set up all outstanding bills and lodge them for payment through the accounting software. They no longer need access to the online banking portal to approve payments; the business owner or manager can do this on their mobile phone. Now accounting software is emerging as the payment gateway for all business transactions. It bypasses the need to go to an online banking portal, with the bank playing a reduced role as an approval platform operated through the bank’s smartphone app. It allows small businesses to instantly connect their loans, offset accounts and credit cards between the two organisations. Giving up bill payments cedes part of the payment experience from the bank to the accounting software. That means less opportunity to market the bank’s services, shunts the bank to a transactional role, and otherwise loosens its “ownership” of the customer.

You make a batch payment in Xero, approve the invoices on the bank’s mobile app, Xero auto-updates the bill as paid and it’s ready for reconciliation. Banks have been slow to invest in their online banking portals and the user experience lags well behind online accounting software. From conversations with current and former banking executives, the reason for this is that it’s extremely expensive and risky to make even small changes. It’s usually fairly simple for a hacker to find a way into a business’ poorly protected network.

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NAB will get access to customer working capital levels held by Xero. “We are taking some of the data that currently only exists in Xero and providing a dashboard in our internet banking channel,” Mr Davey said. “If the NAB customer is operating in the Xero ecosystem and we can provide value to that customer by making it easier for them, I can’t see why you wouldn’t do that,” he said.

  • “I think we will look back one day and say ‘I can’t believe we used to take payment information from our desktop and import it manually into banking software’,” Mr Innes said.
  • We’ve joined forces to deliver better everyday business banking that’ll make managing your money simpler.
  • “Banks have a competitive advantage given the size of their customer bases, but are also under threat from those tech players who could offer the platform.”
  • A simple online application that can be completed in as little as 20 minutes.
  • I reported this to support but have heard nothing since and they are still missing.
  • You need to be at least 18 years or older to apply and hold Australian citizenship or permanent residency.

A router with outdated firmware, an old server operating system, or a gullible employee clicking on dodgy email links. A hacker can then alter an invoice so that payments travel to a bank account controlled by the hacker. Instead, Xero NAB Payments sends your payment instructions from Xero directly to the bank.

They will have to spend the millions on building APIs, both for internal efficiencies and new customer experiences. Similarly, if a particular supplier doesn’t require payment one cycle, there’s no pause button either. You have to manually change the date to the next payment window. EFTSure use a crowdsourced database to verify bank account details; this is exactly what Xero could create here.

Download and complete the application form that can be found on the Xero help page. Complete a separate form for each of the organisation’s Bank Feeds you wish to activate in Xero. Alternatively, there is an application form for users without Internet Banking, available through the Xero help page. NAB Internet Banking is the fastest way to setup Bank Feeds to Xero. You’ll need to add your NAB account number in Xero first. You can do this in by logging in to your Xero Accounting Package and clicking on Select Bank Feeds.

With NAB Payments you can send payment instructions for amounts of up to $40,000. There will be a digital record of all payments in xero, so you won’t need to manually mark the invoices as paid.

Xero charges a similar way for Transferwise and NAB; select a payment tier to suit the number of bills you pay each month. Today this feature is only available in Australia, and only with NAB Bank. You can send payment instructions of up to $40,000, depending on your daily limit with NAB. The NAB payments feature does not currently support pay roll use case – however, we are looking at straight through payments within Xero so please watch this space.

Like with batch payments you select the bills you want to pay and select batch payment. However, instead of downloading the ABA file you are able to connect directly to NAB.

Working from Melbourne, she will be held responsible for expanding Xero’s partnerships with banks and other financial services providers. Former NAB executive for personal everyday banking Leigh O’Neill has taken the newly created role of executive general manager for financial services. In other countries, online accounting software could provide the verification layer for bank account details. Shifting bank account details to online accounting software opens up the possibility of interesting network effects. Transferwise is not a major bank that provides primary banking services to millions of business customers. It is a service for sending and converting money between two currencies/countries. With this new bill payments integration, remove the hassle of manually downloading and uploading ABA files.

Meanwhile, Danielle Smith, former client director for NSW government at KPMG Australia, will join as Xero’s head of financial partnerships . Accounting software provider Xero has recruited two major bank veterans. We’ll assume you’re ok with this, but you may change your preferences at our Cookie Centre. I’m sorry but there’s nothing much we can do to help with bank feed issues on Community.

Australian Ethical Goes On Hiring Spree

When you consider that time is money, the value of Xero NAB Payments is clear. That’s why we’ve created three payment tiers to best suit the number of bills you pay each month. Xero NAB Payments allows accountants and bookkeepers to see both sides of their client’s transaction. This means they’re working with accurate, near real-time data to better understand cash flow and can provide deeper advisory services. Jonathan Davey, executive general manager of digital and innovation at NAB, said even though some believed the move could make banking more like a utility, it was worth the risk to make life easier for customers. Many small-business bank customers find it difficult to compile the information required by banks to get loans, Mr Ridd said.

Thousands of businesses have already linked their NAB accounts with Xero. Bank feeds make reconciling invoices faster and easier and they give your a clear view of your bank balances and activity. Create business payments directly from Xero, and then approve them easily within the NAB app. Find out the moment payments arrive with notifications you set up in the NAB app. Then, easily match payments to invoices you’ve already setup in Xero. When setting your business up in Xero you’ll need to export bank transactions from your bank.

Xero has also established relationships with fintech companies, including ASX-listed foreign exchange disrupter OzForex and the online business lender Moula, to build automated banking products that integrate with Xero’s software. “We were at the forefront of large banks investing equity capital into technology start-ups,” NAB chief executive Andrew Thorburn said. Xero was supplying NAB with a much richer set of data about its customers, in real time, he said. “What we are receiving through that electronic supply is all their latest data and accounting information – live, up-to-date, electronic, a good step forward,” he told the Australia Israel Chamber of Commerce last week.