Cloud accounting company Xero and US financial data aggregator Yodlee have formed a partnership to tackle accounting services giant Intuit.
“The way we view this partnership is that we have the best of breed data platform, these guys (Xero) have the best of breed accounting technology, and together there’s a lot of mutual parties that have adverse interests that we are taking on together,” said Joe Polverari, chief strategy and development officer for Yodlee.
“It’s a really a nice match. It’s great for our business and hopefully good for (Xero’s) business as well, as they’re knocking off QuickBooks which is owned by Intuit who is our competitor,” Polverari said.
Intuit held over 80 percent of the market for small business accounting software in the US and sold a data aggregation service that competed against Yodlee. Yodlee supplied bank feeds to Xero for 10 percent of Australian bank accounts held by Xero users and a much larger percentage of international bank accounts.
“Look at QuickBooks which has dominant market share in the US right now. Xero has a better product. We have better data. And we can help them move very fast,” Polverari said. “We’re going to help them innovate in a market that is very lucrative and is ripe for disruption. This time it will be at the expense of QuickBooks if we’re doing both of our jobs right.”
Competition between Xero, Yodlee and Intuit would produce better products for customers, Polverari added.
“Better data plus better technology on the accounting side equals a better solution for accountants, bookkeepers and users equals a better market. That’s what’s happening, right?” he said.
Yodlee, which has relationships with thousands of banks and financial institutions, said it wasn’t introducing Xero to banks in the US.
“Right now we won’t, (Xero) are doing great on their own. Even though we have the world’s greatest bank relationships inside the US,” Poverari said.
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