Novo, the no-fee banking platform for modern entrepreneurs, today announced a partnership with Xero, the global cloud accounting provider for small business, to become the company’s first U.S. digital banking platform partner.
This comes at a time of unprecedented growth of small businesses and entrepreneurship, reflecting market demand for 21st century solutions to a self-service business operating model. By alleviating the huge pain point of accounting for small businesses, entrepreneurs can now manage expenses seamlessly and securely on Novo’s banking platform, reducing cost and increasing operational efficiency.
A Xero report found that half of small businesses go out of operation within 5 years, but when partnered with an accountant using a tool like Xero, there’s an 85% chance they will still be in business after 5 years.1 To help cash-strapped small businesses increase accounting capabilities and do more with less, this new integration will allow Novo customers to automatically update business transactions directly in Xero to get a real-time view of cash flow.
“The small business landscape is changing, and modern entrepreneurs are opting for mobile-first, on-demand solutions which will enable them to run their businesses in a more self-sustaining way. By being the first digital U.S. banking platform to integrate with a trusted industry leader such as Xero, Novo is paving the way for a new model of banking where banks are no longer stand-alone entities; they are “financial watchtowers” which will seamlessly incorporate the everyday tools essential to a small business.” says Michael Rangel, Co-Founder and CEO. “We are proud to announce this integration with Xero as they have helped millions of business owners, and look forward to expanding our integrations to drive the evolution of modern banking and fintech solutions.”
Currently, the majority of small businesses still spend a substantial amount of time reconciling financial statements manually, increasing their exposure to accounting errors and compliance risk. Integrating with Xero gives entrepreneurs on-demand access to their business’s financial health data, directly impacting their bottom line.
Xero’s direct bank feeds allow small businesses and advisors to receive transaction data frequently and directly in the Xero platform, which cuts down on time spent reconciling transactions and increases data accuracy. With the Xero bank feeds API, financial institutions can dramatically improve time-to-market for direct integrations as they gain access to a consistent development platform to serve their customers. By leveraging the Xero bank feeds API, Novo’s integration with Xero will allow business owners who are already adapting to cloud-based technologies to access their balance sheet with more efficiency and accuracy, helping them re-allocate their time towards scaling their business.
“As the first digital banking platform in the U.S. to leverage our bank feeds API, Novo integrates to our platform to enable businesses and their advisors to access the financial information they need to make crucial business decisions,” said Tony Ward, President of the Americas, Xero. “While innovations in financial services haven’t accelerated as quickly as the needs and demands of a modern business, digital challenger banks like Novo are leading the charge.”
SOURCE Bank Novo