Open Banking Security: Why Connecting QuickBooks to a Bank Feed is Safer Than Ever

As a small business owner, your financial data is your most valuable asset. The idea of connecting your bank accounts to any third-party software can understandably raise concerns about security. But with Australia's Open Banking system, known as the Consumer Data Right (CDR), the process of connecting your bank feed to QuickBooks has never been more secure or transparent.

Open Banking is a government-mandated framework built from the ground up using the latest API-technology to protect your data while it is being shared. It's not just a technical update; it's a new, secure standard, involving ACCC-accredited participants, designed to give you, the consumer, complete control.

And when it comes to choosing a partner, working with an accredited provider like Intuit QuickBooks offers an additional layer of confidence.

Here’s a breakdown of the key security protocols that will give you peace of mind when you connect your QuickBooks account via an Open Banking feed, amplified by Intuit's proven commitment to the framework.

Intuit is an ACCC-approved accredited data recipient

This is perhaps the most important detail for your peace of mind. Intuit was the first and is the only in the accounting software industry to achieve this status, specifically at the "unrestricted" level.

What does this mean for you?

• Government-vetted security: The accreditation process is rigorous and the ACCC (as the Open Banking regulator) has in place strict criteria for information security, technical controls, training, governance and complaint management.Intuit’s status as an accredited data recipient is a public stamp of approval from a government body, confirming that it meets the highest standards for handling your data.
• A commitment to compliance: As an accredited data recipient, Intuit is legally bound to follow a strict set of privacy safeguards enforced by the Office of the Australian Information Commissioner (OAIC) and has ongoing compliance obligations to satisfy the ACCC and OAIC. These rules dictate exactly how your data must be handled, stored, and protected.

You're in control, not the application

The most significant difference between Open Banking and older data-sharing methods is the concept of consent. Key features are:

• No password sharing: You will never be asked to share your bank login details with QuickBooks, your accountant or bookkeeper or any other third-party provider. The connection is made directly between your bank and QuickBooks, with your explicit approval. This eliminates the major security risk of sharing sensitive credentials.
• Granular permissions: You get to choose exactly what data you share and for how long. The process is clear and transparent, typically handled through your bank's secure portal where you confirm your identity and specify the data you are consenting to share. You can choose to grant access to transaction history, but not your personal details, for example. 
• A "kill switch" for your data sharing: You have full control to revoke access at any time. If you decide to stop sharing data, you can do so easily through QuickBooks or your online banking portal.

Rigorous accreditation and oversight

CDR is managed by two government regulators: the Australian Competition and Consumer Commission (ACCC) and the Office of the Australian Information Commissioner (OAIC).

• Accreditation isn’t for everyone: Any business, including Intuit QuickBooks, who wants to be an Accredited Data Recipient must go through a rigorous and extensive accreditation process with the ACCC. This process involves meeting strict criteria for information security, privacy, and compliance.
• Privacy safeguards: The OAIC enforces 13 legally binding privacy safeguards that dictate how your data must be handled. These rules, along with the CDR Rules Intuit QuickBooks is subject to, cover everything from what data can be collected to how it must be secured and used.
• No unsanctioned use: The accredited business can only use your data for the purpose you consented to. Your bank account data can't be used for direct marketing or any other unauthorised purpose without your express permission.

A modern and secure technical framework

Open Banking replaces outdated and risky methods with a state-of-the-art technical framework.

• Goodbye screen scraping: Older data capture methods, known as screen scraping, involved logging into your bank account using your passwords. This process was often unreliable and could provide access to more data than you may have intended to share. The CDR's purpose-built API (application programming interface) provides a secure, encrypted, and standardised way to transfer data.
• High-level encryption: All data transferred between your bank and QuickBooks is encrypted. This means that even if the data were intercepted, it would be unreadable, ensuring its integrity and confidentiality.

By connecting your bank feed to QuickBooks through Open Banking, you are leveraging a system that is not only more efficient but is fundamentally more secure than any previous method. You are no longer relying on trust and outdated technology—you are protected by a robust, government-regulated framework designed with your privacy and security as its highest priority.