Freelance banking app Coconut is pivoting away from opening current accounts to double down on bank statement feeds through Open Banking.
The shift away from current accounts means that any sole trader can now use Coconut to track income, claim expenses and work out how much tax they owe throughout the year, irrespective of their existing banking arrrangements.
Cocounut's new tax app for freelancers, launched in 2021, enables self-employed people to connect securely with 25+ bank accounts and credit card providers, and automatically pull in bank statements and transactions.
Sam O’Connor, CEO & Co-founder of Coconut, says he no longer believe that combining a current account with a tax tool is the best solution for freelancers.
"Open Banking has completely transformed the financial landscape, and by requiring customers to switch to your bank account, you limit their choice and risk not meeting their needs," he says. “Most self-employed people have business transactions in their personal accounts or credit cards. Using Open Banking, we can help them unmuddle these two worlds; and by ensuring they have real-time information at their fingertips, keeping on top of their finances will require much less manual effort from both them and their accountants.”
To date, Coconut has raised £9m from over 6,000 investors through Crowdcube, in three successive campaigns