Importing MT940 files manually? This costs you more than you think

MT940 is disappearing. SWIFT is phasing out MT940 until it is fully discontinued in 2027. BNG Bank already stopped supporting it last February. If your bookkeeping still runs on manual MT940 imports, this is the moment to look ahead to the modern generation of bank connectors.

What exactly is MT940?

MT940 is a file format for bank statements. It was developed in the 1980s by SWIFT, the international payment network, and became the standard for loading business bank transactions into accounting software.

The principle is simple. You download a file from your bank, import it into your accounting software, and process the entries. Millions of companies do this daily. Or weekly. Or, and this is where the problem starts, whenever they think of it.

Why MT940 is being replaced

SWIFT is replacing MT940 with CAMT.053, an XML-based format with more data per transaction. Think of more extensive payment references, structured address details and better support for international payments.

But the real story runs deeper. MT940 is a child of the batch era. You download a file, drag it into your bookkeeping and hope everything is correct. In a world where payments run in real time, that is no longer sustainable. Instant payments have become the norm within the EU.

CAMT.053 is better than MT940. But it remains a file that you have to download and import manually.

The hidden costs of manual importing

It sounds harmless. Downloading and importing an MT940 file takes five minutes. That seems like nothing.

But add it up. An average SME with two bank accounts spends 30 to 45 minutes a week on the complete process: logging in to the bank, selecting the right date range, downloading the file, importing it into the bookkeeping, checking whether everything was loaded, and correcting any errors.

Over a year that is 26 to 39 hours. For an office with ten administrations you are talking about 260 to 390 hours a year. That is one and a half to two months of full-time work.

And that does not even include the indirect costs:

• Delay in your figures. As long as you do not import, your bookkeeping misses transactions. With weekly imports you are routinely three to five working days behind.
• Prone to errors. Selected the wrong date range? Imported twice? File from the wrong account? It happens more often than you think.
• Dependence on people. Who does the import when the bookkeeper is ill or on holiday? With manual processes there is always a single point of failure.

Switching to CAMT.053 does not solve the real problem

Some software vendors present CAMT.053 as the solution. The format is indeed better: richer data, better structure. But the import process remains identical.

You still download a file. You still import it manually. You are still behind.

Our experience is that switching from MT940 to CAMT.053 gives companies a false sense of modernisation. You have a newer file format, but the same outdated process.

PSD2: the real step forward

PSD2, the European payment directive, makes it possible to connect bank accounts directly to your accounting software. No more files. No more manual imports. Transactions flow into your bookkeeping automatically.

This works through so-called Open Banking APIs. You give permission once, and from that moment on the connector retrieves your bank entries automatically. Daily, or even several times a day.

The difference is fundamental:

What does this mean for you?

If you use MT940 now, you have two options. You can switch to CAMT.053 and continue the same manual process. Or you can make the move to an automatic bank connector via PSD2.

We think the choice is clear. CAMT.053 is a band-aid. PSD2 is the solution.

An automatic bank connector costs from 7.50 euros per month. Compare that against the hours you now spend on manual importing. At an hourly rate of 50 euros you earn back the investment in the first week.

The connector is operational within a day. You do not have to install any software and your bank details stay with your bank, the connector only reads along.

ISO 27001: what to look out for

A bank connector touches your most sensitive company data. That is why you should choose a provider with an ISO 27001 certification, the international standard for information security. This means the party is audited annually on how they store, process and protect data.

Also check whether the connector is PSD2-compliant. That guarantees the connection runs through your bank's official API and that your login details are never shared with third parties.

The deadline is approaching

MT940 is stopping. That is not a prediction, but a fact. SWIFT has set the end date and banks such as BNG are following. Whether you switch today or in six months, you have to do something.

The question is not whether you need to move away from MT940. The question is whether you switch to yet another file format, or to a structurally better solution.

Want to know more about the different options for your bank connector? Read our comparison in Exact Online bank connector: your options.

Do the math yourself. View our bank connector →