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The online accounting solution provider, Xero, has been connecting to its partner banks via direct feed APIs since at least 2015. 

I agree with Alexander that new middleware approaches can modernize legacy systems, particularly by creating internal APIs to expose data to front-end developers. Most next generation middleware solutions include API creation, management and security and will be able to connect with the UK Open Data API framework, once defined and developed.

Chris - The industry has been talking about this convergence for a long time and I like your insight on why it hasn't yet been widely adopted; a focus on the end customer. Doh! There is also a reluctance on the LoB and IT silos to work together at financial services firms or "Quelle horreur", use the knowledgeable and skilled resources of a third-party firm to put the pieces together.  

Interesting observation, Chris as I have seen this example in the real world. But some of us have made the leap from being a banker to a solutions provider, bringing along a wealth of industry and product knowledge.

As Gary mentions in his comment, there are other ways for banks to connect with their corporate and financial conterparties, notably commercial networks such as GXS and SAP FSN. All of these networks, including SWIFT, are interconnected so that SWIFT no longer is the "only game in town" and value added services becomes the differentiator.

I don't think people should be blaming Swift The article states that the  European Council put in its orders some very specific language that seems targeted at Swift: "specialised financial messaging services". Swift is subject to the same laws as any other organization. If you feel that the action was unwise, blame the European Council.