As of 14 September, 2019, Hubdoc no longer supports automated document fetching from the following financial institutions in Europe and the United Kingdom:
- American Express
- Bank of Scotland
- First Direct (HSBC)
- Halifax (UK)
- Lloyds Bank
- Metro Bank
- RBS Banks
Due to new legislation, Hubdoc will no longer fetch any documents (statements, CSVs, etc.) from the financial institutions listed above from 14 September 2019. All documents that have been previously fetched from these institutions will remain in your Hubdoc account; however, no new documents will be fetched going forward.
Note: This does not impact banks in regions outside of Europe and the United Kingdom. Hubdoc will continue to automatically fetch documents from the banks listed above in Australia, the United States of America, Canada, and New Zealand, as applicable.
Please see below for more details.
What regulation changes are being introduced?
The second Payment Services Directive, or PSD2, is legislation adopted by the European Union in 2015 to encourage the development and use of new financial technologies, such as Open Banking, which promotes the use of APIs to enable third-party developers to build applications and services around financial institutions.
As part of PSD2 compliance, new EU standards are scheduled to come into effect on 14 September 2019 which impose changes to the way third parties like Hubdoc access data from banks. Specifically, they require that banks must know it's you (not a third party fetching data) that's accessing or authorising the access of your transaction data.
Please note that these new requirements impact the entire industry. Learn more about these requirements here.
What is Open Banking and how does it impact Hubdoc?
Open Banking refers to a system in which a user can be provided with a network of financial institutions’ data through the use of APIs (application programming interfaces).
Open Banking includes the practice of securely sharing financial information electronically with providers. It was set up by the Competition and Markets Authority (CMA) in conjunction with the largest nine UK banks on behalf of the UK Government to bring more competition and innovation to financial services. Open Banking complies to PSD2 legislation and provides the technical framework (gateways or APIs) for the sharing of bank account information with customer consent.
Hubdoc currently uses “robots” (i.e., specialised software scripts) which log in to the bank on your behalf to fetch your documents (please see here for more information about how Hubdoc’s robots currently work). In order to comply with the new legislation changes, Hubdoc will no longer support automated bank fetching. As bank APIs become more available with Open Banking, we will work directly with banks to endeavour to build reliable and compliant connections to facilitate automated fetching.
How can I prepare for this change?
As mentioned, these changes do not only affect Hubdoc, but impact the industry as a whole. Xero has put together a number of resources to help advisors prepare, including an Open Banking Checklist.
With regard to Hubdoc, we recommend that you:
- Implement a revised process for collecting bank statements – our recommended process is set out below
- Notify your clients and onboard them to your new process
Please see below for further details on both of these recommended steps.
Is there a recommended Hubdoc process?
With the legislation change scheduled to take effect on 14 September, we recommend updating your workflow as soon as possible and continuing to use Hubdoc as your centralised source for digital document management and automated data extraction.
Having all documents readily available in one centralised location will help to ensure that they’re easily accessible and discoverable. Moreover, it will help to comply with Making Tax Digital for VAT.
To continue using Hubdoc for managing bank statements, we recommend that you:
- Request and acquire read-only bank account access to your clients’ accounts so you can log in and download statements, then upload to Hubdoc; or
- Ask your clients to download statements and upload them to Hubdoc.
Please see here for instructions on how to manually upload documents to Hubdoc, and please continue reading for recommended communications for contacting your clients about the change and providing a recommended workflow.
Have you communicated this to my clients?
Hubdoc has not communicated this change with your clients; however, we are happy to do so on your behalf – please email firstname.lastname@example.org if you’re interested.
We suggest you speak to your clients to share information about this change and let them know how you will support them. Please see this template for suggested messaging and workflow tips.
We apologise for any inconvenience this update may cause you and your clients. Please do not hesitate to contact our Support Team if you have any questions or concerns.