23rd Oct 2025

How H2H Bank Connectivity Helps Meet the UK Corporate Governance Code (2026)

Strengthening internal controls is no longer a “nice to have”, it’s a formal duty. From financial years beginning on or after 1 January 2026, boards of UK-listed companies will need to state how they design, operate, and monitor material controls, and confirm their effectiveness. For finance and treasury teams, that means demonstrating tighter governance over payments, reconciliations, and bank access. Host-to-host (H2H) bank connectivity provides the practical foundation to achieve this: it replaces manual banking tasks with secure, automated data flows, gives leadership real-time visibility, and generates the evidence auditors need. These changes are part of wider changes to the UK corporate governance code, which bring financial operations into sharp focus.

 

Understanding the 2026 UK Corporate Governance Code Requirements

Strengthened internal control statements

The Code now expects boards to explain the scope of their material controls (financial, operational, reporting, and compliance), how they have been reviewed, and where any deficiencies exist. Finance leaders must be confident that their controls are designed well, operating consistently, and leaving a clear audit trail.

 

Annual declarations and board-level responsibility

The shift isn’t just technical, it’s cultural. Boards must sign annual declarations on control effectiveness, supported by clear documentation and management attestations. That requires reliable, centralised evidence rather than disparate spreadsheets or screenshots from banking portals.

 

The link with the ECCTA’s “Failure to Prevent Fraud” offence

The Economic Crime and Corporate Transparency Act introduces a strict liability offence for large organisations that don’t have adequate procedures to prevent fraud. Payment workflows and bank access are obvious hotspots. The right technology makes it far easier to demonstrate proportionate, effectively operating anti-fraud controls. (Still unsure what the UK corporate governance code is? In practice it’s the UK’s principles-based rulebook for listed companies, setting expectations for leadership, effectiveness, remuneration, relations with shareholders, and, increasingly, robust internal control. It sits at the heart of the UK code of corporate governance.)

 

Why Finance and Treasury Operations Are a Key Focus Area

The risk of manual processes and fragmented systems

Many enterprises still rely on staff to key payments into multiple online banking portals, download statements, and re-upload files into Enterprise Resource Planning Software (ERPs). Each manual touchpoint increases the chance of error, delays reconciliation, and makes it difficult to prove that controls work end-to-end.

 

Fraud and error vulnerabilities in payment workflows

Typical weak points include file tampering, credential sharing, and out-of-band approvals. Without consistent pre-submission validation and role-based access, it’s harder to deter insider threats and catch mistakes before funds leave the business.

 

The need for end-to-end visibility of cash and controls

Boards need timely, consolidated insight: where the cash sits, what has been approved, and what’s failed or been rejected, with a defensible record for auditors. That level of visibility is impractical when processes live in siloed bank portals.

 

Introducing Host-to-Host (H2H) Bank Connectivity

What H2H connections are and how they work

H2H establishes a secure, direct connection between your ERP/back-office systems and your banks. Payment files are validated, encrypted, and transmitted automatically; acknowledgements, status updates, and bank statements flow back the same way. No copy-and-paste. No portal hopping. Just straight-through processing. This kind of bank connectivity solution is fast becoming a critical part of the modern internal financial control framework.

 

Core benefits: automation, visibility, and security

With H2H, approvals are embedded in one place, exceptions are flagged in real time, and audit trails are generated as a by-product of the process. You achieve consistent controls across all banking relationships, domestic and international, while reducing cycle times and operational effort. Finance leaders increasingly rely on these bank connectivity solutions to support assurance and compliance.

 

Supporting internal controls and audit trails

Centralised dashboards show who approved what, when, and under which policy. Message receipts prove delivery; reconciliation feeds prove completeness and accuracy. The result is reliable evidence to support board attestations and external audit.

 

Strengthening Internal Controls Through H2H

Automated payment approvals and segregation of duties

Embed multi-eye approvals based on value, beneficiary type, or business unit. Ensure makers, checkers, and releasers are separated, and automatically enforce four-eyes (or six-eyes) for higher-risk transactions. Dynamic workflows keep you compliant without slowing the business.

 

Immutable audit logs and proof of delivery

Digitally signed files, time-stamped message receipts, and system-generated logs provide a tamper-evident record of activity. Auditors can trace a transaction from ERP initiation to bank confirmation in minutes.

 

Reducing insider fraud risk through access control

Remove the need for widespread portal credentials. Role-based access, MFA, and least-privilege permissions are applied centrally. Combined with pre-submission validation (e.g., beneficiary checks, format and scheme checks), this lowers the risk of error and deters internal misuse.

 

How Third-Party H2H Solutions Help Ensure Compliance

Faster implementation vs. in-house builds

Building one-off SFTP connections, file transformations, and UI tooling internally can take 6–18 months per bank. Third-party platforms like AccessPay bring pre-built bank integrations, proven transformation engines, and a ready-made control layer, compressing timelines to weeks, not years.

 

Continuous compliance updates and monitoring

Standards evolve (for example, ISO 20022), banks change specs, and keys expire. A dedicated provider monitors these shifts, updates mappings, rotates encryption keys, and maintains resilience, so your control environment stays current by default.

 

Reducing maintenance burdens and operational risk

24/7 monitoring, incident response, penetration testing, and evidence packs are part of the service. Your team focuses on policy and oversight; your provider keeps the pipes flowing and the proofs available. This is where finance automation compliance becomes easier to achieve in practice.

 

Preparing for the Future: ISO 20022 and Beyond

Adapting to new data enrichment and reporting requirements

High-value payment systems now require richer data: purpose codes, structured addresses, and (in some cases) Legal Entity Identifiers. H2H makes enrichment repeatable and consistently enforced, helping you avoid costly rejections.

 

Minimising failed payments and manual interventions

Pre-validation catches format errors and incomplete references before submission. Automated statement retrieval accelerates reconciliation and exception handling, keeping close processes on schedule.

 

Staying audit-ready as regulations evolve

Whether it’s emerging payment schemes or new governance expectations, an H2H layer gives you the flexibility to adapt without re-engineering your core finance systems. It reinforces the wider internal controls framework that auditors and regulators now expect to see.

 

Key Takeaways for Boards and CFOs

  • H2H is not just a technology upgrade; it’s a governance enabler that turns policies into consistently-executed controls.
  • It creates a single control surface across all banks, making evidence collection fast and reliable.
  • Partnering with a specialist reduces time-to-value and concentrates scarce IT effort on strategic initiatives rather than maintenance. 
Some questions to consider:
  1. Where are the manual touchpoints in our payment and reconciliation processes, and what risks do they introduce?
  2. Can we evidence segregation of duties, approval policies, and proof of delivery for every payment?
  3. How quickly could we adapt to new schemes or bank requirements without compromising control effectiveness?

 

Next Steps

Book a consultation with AccessPay’s H2H experts. We’ll map your banking estate, identify quick wins in control effectiveness, and outline an implementation plan aligned to the Code.

Download the full white paper: Connected Finance: The Business Case for Host-to-Host Bank Connections in Driving Finance Transformation.

Request a demo

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