Open banking explained for property management
Open banking uses the EU PSD2 directive to securely connect your bank account to property management software. It automatically detects rent payments, matches them to tenants and flags late payments — eliminating manual bank statement reconciliation entirely.
Open banking is a game-changer for property management. Instead of manually checking bank statements each month, the software:
- Reads incoming transactions in real time (read-only access)
- Matches payments to the correct tenant based on amount, reference and sender
- Flags missing payments automatically after the due date
- Records payment dates for accurate financial reporting
- Generates payment history for each tenant
How to set up open banking
Setting up open banking with property management software involves:
- Select your bank from the supported list (most Belgian banks are supported)
- Authenticate via your bank’s secure login (eID, itsme, bank app)
- Authorise read-only access — the software can only read transactions, never initiate them
- Map tenants to expected payment patterns (amount, reference)
- Activate monitoring — the software starts reconciling payments automatically
The connection must be renewed periodically (typically every 90 days) for security purposes, as required by PSD2.
Ask your tenants to use a consistent payment reference (e.g., “RENT + property address + month”). This helps the software match payments more accurately and reduces manual corrections.
Security and privacy
Open banking is subject to strict EU and Belgian regulations:
- Read-only access: the software can only read transactions, never move money or access other services
- PSD2 compliance: all providers must be licensed and supervised by the NBB (National Bank of Belgium)
- Encrypted connections: all data transfers use bank-grade encryption
- GDPR compliance: tenant payment data is protected under EU data protection law
- Revocable access: you can disconnect your bank at any time
The technology is fundamentally different from sharing your bank login credentials (which should never be done). Open banking uses secure APIs provided by the banks themselves.
Regional specifics
Brussels-Capital Region
Open banking works identically across all Belgian regions. For Brussels properties under the Ordinance of 27 July 2017, automatic payment detection helps ensure timely rent tracking.
Wallonia
For Walloon properties under the Decree of 15 March 2018, open banking provides the same benefits. All major Walloon banks support PSD2 connections.
Flanders
For Flemish properties under the Flemish Housing Rental Decree of 9 November 2018, open banking functions identically. KBC, Belfius and other major Flemish banks all support open banking.
PSD2 Directive (EU 2015/2366) transposed into Belgian law by the Law of 11 March 2018. Open banking providers must be licensed by the NBB (National Bank of Belgium) or an equivalent EU authority.