Digital Verification for companies that’s portable, and fit for purpose - UK Fintech leads the way

The pursuit of growth in the context of a challenging global economy has been a mantra in the UK for some time, with successive governments identifying this country’s dominance in Fintech as a potential driver.

The Kalifa review, published in 2021 examined this opportunity and set out some key requirements to make it happen. Subsequent work focused on initiatives like the FCA Sandbox where companies can safely test innovative technology, and the Bank of England’s exploration into digital currencies. 

The other key element of this strategy was to create CFIT, the Centre for Finance, Innovation and Technology, tasked with bringing together time-limited “coalitions” of experts to address barriers to Fintech growth. 

Any new technology is only as successful as the business need that underpins it; in this case fraud which costs the UK £219 billion in 2023, despite UK financial services firms collectively spending £38 billion annually on financial crime compliance measures. 

PrivTech was invited to the launch of CFIT’s strategy and blueprint to introduce a Digital Company ID and showcase recommendations for future solutions:

Identity is at the heart of any solution to limit fraudulent transactions and applications, while the duplication and version control errors around current KYC/KYB processes are a drag factor on SME companies getting banked, and growth in general. 

This was echoed in the keynote presentation from Emma Reynolds. Economic Secretary at HM Treasury, making the government’s support clear:

“The UK’s leading financial services sector is key to driving growth and putting money in people’s pockets through the Plan for Change. CFIT’s work in countering fraud demonstrates the UK’s position as an innovator within the global financial ecosystem. I look forward to considering the Coalition’s findings as part of our range of work to grow the sector.”

So far, so good; but the work is just beginning as CFIT moves into delivery mode. Next steps will be to develop a working prototype to be tested and used by industry stakeholders including NatWest, Lloyds and Monzo, roll this out to include government bodies and establish a sound regulatory framework.  

PrivTech, represented in this case by Gilbert Hill, has been appointed a member of the Second CFIT Coalition and specifically the Trust and Governance Framework Working Group. 

This Working Group will define a Trust and Governance Framework for Digital Company ID that will define the data sources, verification and attestation methods used to authenticate the identities of individuals associated with a business such as Directors and Principals. 

The Framework provides the basis by which commercial providers of Company ID verification services can build and deliver Digital Company ID verification services and be independently certified and audited on the implementation of these services, enabling a licensed / certified network of Digital Company ID Providers to be created.

We’re excited to be part of such a high-profile and fundamental initiative for the UK and will be sharing updates here and with our email subscribers.