Why Coconut's Current Accounts Are Closing
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Coconut news
3
May 2022

Why Coconut's Current Accounts Are Closing

We recently announced that all Coconut current accounts will be closing on 30th June 2022. Read on to find out more about what this change to our service means, why we’re doing it, and what it means for the future of Coconut.

The Coconut Team
The Coconut Team
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Last week, we announced that we will no longer be offering our current account feature to Coconut customers, and that all current accounts will be closing fully on 30th June 2022. 

Below, we’ll explain what this change to our service means, why we’re doing it, and what it means for the future of Coconut.

TL;DR

  • All Coconut current accounts will be closing on 30th June 2022.
  • Coconut is not closing. Far from it. We’re just no longer offering our current account feature.
  • None of our accounting, tax, or invoicing tools will be affected by this change. 
  • We stopped opening new current accounts back in 2020, so that we could focus on building our simple accounting and tax software for self-employed people and accountants. Our decision to close legacy current accounts will enable us to be even more laser-focussed on making that software the best it possibly can be for our customers, wherever they choose to bank.
  • Our goal has always been the same: to make it easy for self-employed people to manage their finances—particularly as Making Tax Digital 2024 draws nearer. When Coconut started, the only way we could do this was by offering a current account ourselves. But with developments in open banking, we can now provide our accounting and tax tools to all self-employed people, without offering current accounts ourselves.
  • We know that there are better banks out there for self-employed people than Coconut—but our accounting and tax software for self-employed people and accountants is unrivalled. That’s why we believe that self-employed people will get a better banking and tax experience by opening an account elsewhere, and then connecting it back to Coconut.
  • All customers who have been affected by this change have already been contacted; if you think that’s you but haven’t yet heard anything, feel free to get in touch with our team via the in-app chat.

What's happening

From 30th June 2022, Coconut will no longer be offering our current account feature.

That is all that is changing. Customers can continue to use our accounting, tax, and invoicing tools to manage their finances as usual, by connecting their bank and credit card accounts to the Coconut app via Open Banking.

What does this mean for current account users?

All affected customers will be fully supported throughout this change. We’re giving guidance on how to prepare for it, and have also partnered with two banks to offer our active customers exclusive perks and discounts on new current accounts.

We have communicated this information to any customers affected by this update, but if you believe that’s you and you haven’t yet received any information, get in touch with our Support team via the in-app chat and they will be more than happy to help.

Why we’re closing current accounts

We stopped opening new current accounts in December 2020 so that we could focus more of our time and energy on building our simple accounting and tax software for self-employed people and accountants.

Over the past 18 months, we’ve been working hard to:

  • Refine our accounting and tax app for self-employed people, that allows users to connect their bank accounts, categorise their transactions, and capture receipts, bills and invoices, all in one place. 
  • Build our Coconut Portal, which gives accountants instant access to all of that real-time accounting information, whenever they need it (and without needing to chase clients for it).

Our decision to close legacy current accounts will enable us to be even more laser-focussed on making that software the best it possibly can be for both accountants and self-employed people, wherever they choose to bank.

Open banking means we can help even more people prepare for quarterly tax returns

At Coconut, our primary focus is helping self-employed people and accountants prepare for Making Tax Digital 2024 and challenges it will bring: quarterly tax returns, and the requirement to use a digital product to manage your finances.

In fact, a huge 40% of sole traders have told us they still don’t feel at all prepared for the changes.

When Coconut started back in 2018, the only way we could do this was by offering a current account ourselves. But with developments in open banking (which allows you to connect any bank account or credit card to Coconut), we can now provide our accounting and tax software to every self-employed person, without offering current accounts ourselves.

We know that there are better banks out there for self-employed people than Coconut. But our accounting and tax software for self-employed people and accountants is unrivalled. That’s why we believe that self-employed people will get a better banking and tax experience by opening an account elsewhere, and then connecting it back to Coconut.

What this means for the future of Coconut

The closure of current accounts will have no impact on the accounting and tax software we provide. Customers can continue to securely connect their bank and credit card accounts to their Coconut app, enabling them to easily manage their finances in the palm of their hands.

But by refocusing our efforts, we’ll continue providing our business customers and their accountants with a best-in-class service which works for them, regardless of where they choose to bank.

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