CFIT secures industry partners to lead next coalition

The Centre for Finance, Innovation and Technology (CFIT) has secured funding partnerships from Lloyds Bank and Mastercard for its next industry-led coalition.

Given the strategic support received from both industry and government to date, and with CFIT’s second coalition on tackling economic crime through a company digital ID reaching its conclusion, its next industry-led coalition is expected to launch in the first quarter of 2025.

The next coalition will be led by industry partners, including Mastercard and Lloyds Bank, with other blue-chip financial institutions set to join as strategic industry partners this year.

The coalition will build on CFIT’s Open Finance coalition and SME Finance Taskforce by developing the technology, policy and regulatory solutions to help the UK’s 5.6 million small businesses raise external finance “more readily, successfully and efficiently”.

The forthcoming coalition is tasked with developing “SME-focused solutions”, such as an SME digital finance education tool and a digital marketplace.

CFIT chair Charlotte Crosswell

It will also focus on boosting the supply of SME lending by developing further supply-side proofs of concept, including an SME resilience index that enables lenders and other financial service providers to make more informed decisions, building on CFIT’s prior work in this area.

CFIT is shifting to a “hybrid model”, under which it will simultaneously run publicly and privately-funded coalitions, marking the beginning of the organisation’s next phase of growth, which will see it continue to diversify its revenue sources throughout 2025 and beyond.

Charlotte Crosswell, chair of CFIT, said: “This new strategic agreement with industry partners positions CFIT strongly for its next phase of growth, and is testament to the success of our coalition-led approach to date.

“We are grateful for the support of Mastercard and Lloyds Bank and look forward to welcoming more strategic and coalition partners to further advance the progress we’ve already made on SME finance.”

Crosswell added: “We are also working closely with industry on other key projects for 2025, such as Smart Data schemes in financial services and delivering more inclusive financial service propositions.

“This agenda is closely aligned with the Government’s Industrial Strategy, National Payments Vision and ambitions – including manifesto commitments – on Smart Data, and especially Open Banking and Open Finance. All of which will be crucial to helping the UK regain its leadership in financial services innovation and fintech amidst intensifying global competition.”

CFIT launched in 2023 with initial backing from HM Treasury and the City of London Corporation.

Jane Prokop, Mastercard executive vice president and global head, small and medium enterprises, said the UK’s small businesses are often “deterred” from accessing the finance they need to prosper due to previous bad experience, or cultural factors, such as greater risk aversion than in other markets.

“When they do seek to borrow, they frequently are unable to receive funds at a reasonable cost, or in the needed amount. Mastercard is delighted to lead this next coalition with CFIT and we endorse this collective initiative that will ensure small businesses get the funding that they need,” she added.

“We believe that this is in the interests of all economic stakeholders and that UK GDP growth will result from the coalition’s work programme.”

“By entering into a strategic partnership with CFIT for this next coalition, we aim to accelerate the development of the SME finance market, creating Smart-Data-driven solutions that help SMEs access appropriate funding,” said Elyn Corfield, chief executive officer, business and commercial banking at Lloyds Bank.

In December last year, CFIT’s second industry coalition revealed it has been working on a digital company ID which could add £600 million annually to the UK economy.