Automating bank feeds

Introduction

Reconciling bank statements against invoices might seem like a straightforward daily routine. But as your business grows, this manual task—downloading statements, copying transaction data into spreadsheets, and matching payments one by one—rapidly transforms from a minor chore into a major operational bottleneck.

This isn’t just about lost time. Manual reconciliation introduces unnecessary complexity, increases the risk of human error, and diverts finance teams from higher-value strategic work. Each copied row is a potential mistake, and every delay in reconciliation can distort your real-time cash position and financial insights.

Automating bank data integration and reconciliation is no longer a luxury—it’s a necessity for scaling efficiently and maintaining financial accuracy.

Every time a team member logs into a separate bank portal to export data, they’re not just spending valuable time—they're navigating a maze of security tokens, KYC checks, and varying statement formats. This fragmented process makes it nearly impossible to automate reconciliation in systems like NetSuite. As a result, many companies reconcile weekly or even monthly, rather than daily. The consequence? Outdated cash flow visibility, limited insight into in- and outflows, and reduced control over liquidity when it's needed most.

And if you’re managing accounts across multiple banks, currencies, or entities, that complexity multiplies fast. Finance teams end up spending more time on administrative cleanup than on analysis and decision-making. In today’s environment—where real-time insight, accuracy, and control are non-negotiable—that’s a competitive disadvantage you simply can’t afford.

For finance professionals who already understand the basics of bank feed—or bank statement—automation, the next step is finding a smarter, more scalable solution. Tools like Saltedge offer a starting point, but they often come with duplicate transactions, delays, frequent re-authentication needs, and limited bank coverage across countries. Direct bank integrations may offer more control, but they're time-consuming to set up, difficult to maintain, and rarely support both statements and payments end-to-end—especially when managing multiple banks with different formats and protocols.

This article offers a practical blueprint for taking control: how to centralize, automate, and optimize your bank connectivity in a way that scales with your business, not just for today, but for the banking landscape five years from now. It’s about moving beyond patchwork solutions to build a resilient, future-proof foundation for cash visibility, control, and efficiency.

What are bank feeds - really?

At its core, a bank feed is a live or scheduled data connection that automatically imports transaction information from your bank accounts into your ERP, accounting, or treasury system. It replaces the need for manual downloads, spreadsheet uploads, or email-based statement sharing.

But here’s the nuance that matters to finance professionals: not all bank feeds are equal. While the basic goal is the same—move data from Point A (the bank) to Point B (your financial system)—the method and structure of that flow determine how much value you actually get from the automation.

There are generally three types of bank feeds you’ll encounter:

1. Legacy file-based feeds

   These include formats like MT940, BAI2, or CSV, usually delivered via SFTP or direct downloads. While functional, they tend to be batch-based (e.g., daily), less flexible, and often require IT involvement to map fields or handle exceptions.

2. API-based feeds

   API-based bank feeds offer faster access to balances and transactions, but they come with real limitations. Coverage varies by country and bank, connections can be unstable, and some accounts or transaction types may not be supported. For companies with more complex banking needs, APIs alone don’t offer the reliability or completeness required for full automation.

3. Screen - scraping feeds
   The most scalable solutions combine legacy file support and modern API integration, all under one platform. This hybrid approach is especially useful for businesses operating across regions, banking partners, and varying system capabilities.

When implemented correctly, a centralized, automated bank feed system offers:

• Transaction imports, eliminating lag between bank activity and internal visibility

• Trigger-based reconciliation, linking payments and receipts to invoices as they post

• Multi-bank oversight, consolidating data across accounts and currencies in one interface

• Reduced dependency on manual uploads or IT scripting, saving time and reducing error margins

When the connection is seamless, secure, and synchronized with your internal systems, finance teams can shift their focus from data collection to decision-making.

The multi-bank challenge

Now, let’s talk about the reality most finance teams face: multiple banks, multiple formats, and fragmented workflows.

If your company operates internationally, manages subsidiaries, or uses different banks for different treasury functions (e.g., one for payments, another for FX), then automation isn’t just nice to have—it’s essential.

Here’s what finance teams typically deal with in a non-automated, multi-bank setup:

1. Multiple login portals = wasted time and risk of errors

The problem:
Manually logging into multiple banking portals to check balances or download statements isn’t just tedious—it delays financial insight. Because it’s so time-consuming, many teams only do it weekly or monthly. That means cash visibility is outdated, fragmented, and unreliable. Without timely data, finance teams can’t forecast accurately, mitigate FX risk, optimize idle cash, or ensure liquidity is where it's needed for internal investments. In today’s fast-moving environment, delayed visibility doesn’t just waste time—it limits your ability to act strategically.

How Cobase solves it:
Cobase consolidates access to all your bank accounts in one secure, centralized dashboard. With a single login, you gain real-time visibility into balances, statements, and transactions across all your banks globally. But it goes beyond convenience. By automating data flows to your ERP and centralizing payment control, Cobase gives finance teams the ability to actively manage liquidity—whether it’s mitigating FX risk, reallocating surplus cash to higher-yield accounts, or funding internal investments. This isn’t just about saving time. It’s about transforming how your business uses cash as a strategic asset.

2. File format chaos = manual conversion headaches

The problem:
Each bank delivers transaction files in its preferred format—MT940, CAMT.053, BAI2, CSV, or proprietary structures. Most ERP and accounting systems can only support one or two. As a result, finance teams are forced to manually convert files, write custom scripts, or rely on IT to patch things together.

How Cobase solves it:
Cobase automatically normalizes all incoming bank data into a consistent, structured format tailored to your ERP, TMS, or accounting system. Whether your bank sends CAMT.053 or a custom CSV, Cobase cleans, maps, and standardizes the data before it reaches your system—no manual conversion or reformatting required. You get plug-and-play compatibility, without touching a line of code.

3. Integration exhaustion = expensive, unstable connections

The problem:

Directly integrating each bank with your ERP or treasury platform is costly, time-consuming, and unstable. Banks frequently change file structures, security protocols, or API endpoints—breaking the integration and causing delays that IT needs to fix.

How Cobase solves it:
Cobase acts as the middleware layer between your banks and internal systems, shielding your infrastructure from changes. We maintain the connections with your banks—via SWIFT, APIs, SFTP, EBICS, or host-to-host—so your team doesn’t have to. If a bank updates its format or protocol, Cobase absorbs the change and continues feeding standardized data into your systems without disruption.

4. Inconsistent data = broken automation and poor insight

The problem:
Even when automated feeds are in place, the content of transaction data can vary significantly between banks. Differences in value dates, reference formats, or payment descriptions make it difficult to automate reconciliation or accurately categorize transactions.

How Cobase solves it:
Cobase enriches and harmonizes transaction data through advanced data mapping and rule-based transformation. You can set custom rules to categorize transactions, align value dates, or recognize patterns for reconciliation. Our platform ensures that the data flowing into your ERP or TMS is not just consistent—it’s also intelligent and automation-ready. That means fewer exceptions, faster closes, and more reliable financial insight.

The Result?

A centralized solution—like Cobase—solves this by aggregating all your bank feeds through a single, normalized interface, handling both legacy files and modern APIs, and connecting directly into your ERP or TMS with minimal IT lift. It gives you control, consistency, and clarity—without compromise.

• No more logging into multiple portals

• No more format juggling or broken integrations

• No more data cleansing before reconciliation

• One platform, one standard, total control

The solution: centralized, automated bank feeds via Cobase

Handling bank feeds shouldn't be a daily puzzle to solve. Cobase simplifies and centralizes your entire bank connectivity landscape by serving as a single, secure interface between your financial systems and all your banking partners—regardless of geography, file format, or technical standard.

Whether you’re dealing with legacy formats, regional bank protocols, or modern API infrastructures, Cobase brings it all together into a unified, scalable solution.

Expansive bank connectivity

One of the biggest challenges in financial operations is managing connections to multiple banks across different regions, formats, and technologies. Each institution comes with its own protocols, file types, and authentication models—making integration a technical headache and ongoing maintenance a costly burden.

Cobase eliminates this complexity by offering direct, secure connectivity with banks worldwide, covering both global institutions and regional banking partners. Our platform provides a unified entry point for all your banking data, no matter where it originates or how it's delivered.

• Corporate banking APIs: 

  Cobase connects directly to banks using secure Corporate Banking APIs tailored for enterprise needs. These dedicated connections enable access to account balances and transaction data without manual processes. By eliminating the need for repeated logins or manual file downloads, Cobase delivers continuous and accurate cash visibility—empowering finance teams to make timely, confident decisions with ease and efficiency.

• SWIFT (MT940/MT942): 

  Cobase enables seamless global bank communication by supporting standard SWIFT messaging formats like MT940 for end-of-day reporting and MT942 for intraday liquidity updates. Clients can use Cobase’s SWIFT BIC Code to connect with banks worldwide—eliminating the need to set up and maintain their own SWIFT infrastructure. For those that already have a SWIFT BIC, Cobase can connect through SWIFT Cloud as well. This flexibility allows companies to manage international accounts, cross-border transactions, and group-wide liquidity from a single platform, with minimal setup and full compliance.

• SFTP / Host-to-Host Transfers: 

  While APIs may seem like the future, they often fall short—lacking support for batch payments, cross-currency transactions, or salary runs. That’s why many banks worldwide still rely on secure file transfers via SFTP or host-to-host (H2H) protocols. Cobase fully supports these globally accepted standards, with proven reliability across regions and institutions.

  The key? Clients don’t need to choose how to connect—Cobase does it for them. Our experts evaluate and implement the best available connection method, whether that’s API, SFTP, H2H, or a combination. We also maintain our own H2H connections with several banks, enabling faster onboarding, and we continuously monitor API developments to adopt them when they truly add value. With Cobase, you’re always connected in the smartest, most scalable way—without the technical burden.

• EBICS (widely used in DACH region): 

  Cobase is EBICS-native, offering built-in support for this widely-used protocol in Germany, France, Switzerland, and other parts of the DACH region. EBICS provides secure, structured, and compliant access to bank statements, payment confirmations, and transaction logs—often a legal requirement for firms operating in those markets.

One platform, zero complexity

What does this mean for your finance team?
No more juggling:

• Multiple technical specifications

• Different onboarding processes for each bank

• Ongoing maintenance when a bank changes its file structure

• IT tickets every time something breaks

Cobase handles it all behind the scenes—bank-specific quirks, format conversions, and security protocols—so your team can focus on strategic finance, not data plumbing.

Whether you're operating across five countries or fifteen, with three banks or thirty, Cobase ensures that your banking infrastructure is consolidated, compliant, and completely under control.

Standardizing formats

The biggest hurdle in bank feed automation isn’t just getting access to data—it’s making that data usable, reliable, and actionable across all your internal systems. In multi-bank environments, raw bank data arrives in a variety of formats, structures, and levels of detail. Without standardization, you're left with a messy patchwork of information that creates friction in reconciliation, reporting, and forecasting.

That’s why Cobase puts data normalization at the core of its platform. We don’t just connect to your banks—we translate, refine, and reshape the incoming data to fit seamlessly into your finance and treasury workflows.

Here's how Cobase simplifies the complexity:

1. Converts diverse file types into a single, usable format:

Cobase supports a wide range of industry-standard and bank-specific file formats—including MT940, BAI2, CAMT.053, and various CSV or proprietary exports. These are automatically transformed into a unified, structured format, so your internal systems don’t have to handle multiple parsing rules or file mappings.

Whether one bank sends MT940 and another sends CAMT.053, Cobase ensures the output looks and behaves the same on your end.

2. Tailors output to your ERP or TMS requirements:

Every ERP, TMS, or accounting system has its own requirements for field mapping, structure, and frequency. Cobase customizes the output format to fit your existing architecture, whether you're using SAP, Oracle NetSuite, Microsoft Dynamics, or a custom-built solution.

This ensures zero disruption to your workflows—no custom code, no middleware, and no need to manually massage the data before it’s usable.

3. Intelligent metadata mapping for categorization & reconciliation:

Cobase doesn’t just process raw data—it adds intelligence. Our platform maps transaction metadata (like payment references, counterparty names, value dates, and transaction types) to help drive downstream automation in:

• GL account assignments

• Cash application

• Invoice matching

• Intercompany reconciliation

• Bank reconciliation logic

This ensures consistency across all banks and significantly improves your ability to automate core financial processes.

4. From raw data to business insight:

Without normalization, automation only goes halfway. Finance teams still end up cleaning up transactions, reconciling inconsistencies, or correcting errors before closing the books.

With Cobase, your bank data arrives in your system clean, consistent, and ready for automation—regardless of how messy or fragmented the input might be. This translates into:

• Less time spent on data correction

• Fewer exceptions during reconciliation

• More accurate and timely cash reporting

• Full audit traceability of data transformation

Note: The chart was designed to visually represent the concept of Cobase's data normalization—specifically, how it standardizes inconsistent bank feed formats from different sources into a unified, clean output.

Common pitfalls to avoid

Even when the business case is clear, many companies fall short on implementation. Here’s how to sidestep the most common issues:

Choosing a limited solution

Some vendors only support a handful of banks or basic formats, forcing you to manage others manually.

Fix: Use a truly multi-bank solution like Cobase that integrates with hundreds of institutions globally and adapts to your existing infrastructure.

Skipping onboarding & training

Even powerful tools underperform when users don’t fully understand them.

Fix: Invest in onboarding and provide different access levels based on roles. Cobase includes training and support to ensure rapid adoption across your finance team.

Stopping at the feed

Many companies automate data import but still reconcile manually, missing the full ROI.

Fix: Leverage Cobase's reconciliation logic to automatically match transactions to invoices, payroll, or internal rules—closing the loop.

PYMNTS and Corcentric study

Future-proofing: what’s next?

Bank feed automation is the foundation—but Cobase goes further by enabling you to build a future-ready financial ecosystem. Here’s what we’re helping clients achieve:

Predictive cash flow management

Leverage real-time and historical data to project cash availability across multiple time horizons, identify potential shortfalls, and optimize working capital usage.

Payment automation and control

Streamline payment processes with rule-based workflows, central authorization, and tracking—enhancing accuracy, security, and efficiency across all payment types.

Why Cobase?

Cobase isn’t just another bank feed provider. We’re a strategic partner helping you modernize your financial infrastructure without disrupting what already works.

Here’s what sets us apart:

• One login, all banks: Centralize your entire cash ecosystem

• Flexible integration: ERP, TMS, accounting—whatever you use, we adapt

• Security & compliance: SOC2, ISO 27001, PSD2-ready

• Custom logic & rules: Automate categorization, matching, and exceptions

• Vendor-neutral: No need to change your banking relationships—Cobase overlays them

Conclusion

Want to find out what Cobase can do for you?

Frequent Asked Questions (FAQs)

1. Can I use automated bank feeds for personal finance?
Yes. Many personal finance apps also offer automated bank feed features. They help track your spending, categorize expenses, and provide a clear overview of your budget.

2. Do I need a separate tool if my accounting software already offers automated feeds?
Most robust accounting platforms come with built-in automation features. If yours does, you likely don’t need a separate tool. However, if you require specialized reporting or integrations beyond what your platform provides, third-party solutions might be beneficial.

3. Are there any risks involved with linking my bank account to software?
Security should be your top priority. While it’s generally safe if you use reputable software with encryption and two-factor authentication, nothing is 100% risk-free. Always ensure you choose credible providers and keep your passwords secure.

4. How often are my transactions updated in an automated feed?
This varies based on your bank’s policies and the software’s refresh intervals. Some update in real-time, while others refresh once or twice a day. Check the settings in your software to see if you can customize the frequency.

5. Can automation handle currency exchange rates for international transactions?
Many platforms do offer automated currency conversions, but accuracy can depend on live data feeds. If you regularly deal with multiple currencies, look for a platform that updates exchange rates in real-time to ensure accurate reporting.