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Current as of 02/12/16 07:39PM NZST

Xero does big deal with US bank

By Aimee Shaw

Xero Chief executive Rod Drury. Photo / Jason Oxenham
Xero Chief executive Rod Drury. Photo / Jason Oxenham

Xero has signed a major deal with one of the United States' largest banks, Wells Fargo, which should provide a big boost to its US expansion plans.

The partnership between the two firms aims to begin a financial web revolution for small businesses by simplifying and streamlining the secure flow of data between banks, accountants and business operations.

Xero chief executive Rod Drury said the deal was a big endorsement for the company and a good sign for investor confidence.

"It's a huge tick in the box and means that we can now establish ourselves outside of the UK and Australia," he said. "For a bank of that scale to actively partner with Xero, that points to how our US strategy is performing and hopefully others will follow."

Drury said Xero has done a lot of US deals, but hopes this one will move the company along.

"Xero is winning globally, but we are still seen as small in the US," he said.

Wells Fargo head of digital virtual channels Brett Pitts said Xero was the first technology company to join its "data sharing journey".

"In an era of increasing concern about the security of electronic financial data, it is time to move towards more secure and more reliable data exchange methods," Pitts said.

"As a result of this agreement, we're creating a much better experience for our small-business customers, who will benefit considerably from the improved process that comes out of this innovative agreement."

Xero first began expanding in to the United States two years ago. Since then it has signed deals with a number of companies including Apple, Google, Silicon Valley Bank, City National Bank, Paypal and Stripe.

It has recently surpassed 700,000 subscribers in more than 180 countries worldwide.

Drury said the company had been using New Zealand and Australia as a "test lab", and hopes the signing of this deal will enable other large-scale opportunities to follow.


- NZ Herald

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