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Banking and Financial Services Taskforce Delivers SME Action Plan to Boost UK Economic Growth Centre for Finance, Innovation and Technology (CFIT) Chair, Charlotte Crosswell OBE, said: “The financial services and fintech industry has worked together to design a comprehensive programme that will energise the UK economy by making the lending experience better for both SMEs and the lenders themselves. “What’s particularly exciting is that this doesn’t require significant public spending. While policy implementation inevitably takes time, there are so many levers that industry can pull with the support of policymakers, to quickly build momentum, boost SME lending and unlock growth.” https://lnkd.in/ee4xMajH Ezechi Britton MBE Hannah Stakes Teresa Lam Mastercard Jane Prokop Henk Van Hulle Open Banking Marion King Christoph Rieche iwoca Martin McTague OBE Federation of Small Businesses (FSB) #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

The SME Finance Taskforce chaired by Centre for Finance, Innovation and Technology (CFIT) have developed an action plan to ENERGISE the UK economy 🇬🇧 🤯 🏪 Lending to SMEs in the UK has FALLEN by 20% in real terms over the past decade and the resulting funding gap prevents SMEs from investing in their firms, improving productivity and making a greater contribution to the economy. 🤝 🏛 The plan will speed up lending AND access to finance for 5.5 MILLION SMEs which deliver over 50% of the UK's economic turnover. Together, the Taskforce is pledged to work in partnership with the 10 Downing Street to grow the UK economy, contribute to policy AND legislative development 👨💻 Henk Van Hulle, Open Banking CEO, said: “I’d like to thank the taskforce for its work on the report, and the substantial recommendations it makes to leverage the success of Open Banking and Smart Data to help the UK’s SMEs access the borrowing they need. In particular, the report’s seven-point plan sets out tangible steps towards a wider smart-data economy that can deliver clear economic benefits for the UK. “OBL is pleased to have played a vital role in the taskforce, providing expert input, taking on the secretariat work and helping to bring a wide range of key stakeholders together. As part of our remit to support wider initiatives, we also hope that we will be able to use our experience in this area to deliver some of the report’s recommendations.” Read the report on the link below! 👇 Charlotte Crosswell OBE Ezechi Britton MBE Hannah Stakes Marion King Mastercard Jane Prokop iwoca Christoph Rieche Martin McTague OBE Federation of Small Businesses (FSB) #CFIT #SMEfinance #openbanking #openfinance #mastercard #smartdata #ukeconomy #economicgrowth #smarteconomy #fundinggap

Last week, we launched an impactful seven-point action plan to enhance funding access for the UK's 5.5 million SMEs. These enterprises employ 60% of the private-sector workforce and drive over 50% of UK economic turnover.   Read more on FF News | Fintech Finance👇 https://lnkd.in/esJnzxDb   📄 Follow the link below to read the SME Finance Taskforce Report here: https://lnkd.in/emPSaaCp    #UKFintech #SmartData #SMEGrowth #SMEFinance #CFIT 

Unlocking the Potential of SME Lending through Smart Data! In the UK, small and medium-sized enterprises (SMEs) play a vital role in driving the economy, accounting for 58.5% of total private sector employment and generating 52.6% of turnover—amounting to £2.36 trillion annually. Yet, a recent report by the Centre for Financial Inclusion and Technology (CFIT) reveals that 900,000 small businesses are at risk due to inadequate access to finance, with a funding gap estimated at £22 billion. To address these challenges, banks and lenders can take proactive steps to enhance finance accessibility for SMEs: 🔹 Open Banking: While the UK leads in Open Banking, there's room for lenders to incentivize customers for sharing their data, streamlining manual processes, and fostering trust through data transparency. 🔹 Commercial Credit Data Sharing (CCDS): By aggregating income and expenditure data from major banks, lenders can quickly assess SMEs’ eligibility for funding, accelerating decision-making. 🔹 HMRC Data: With customer consent, sharing tax information like VAT filings can help reduce information asymmetry and improve lending decisions. 🔹 Open Finance: Leveraging data from accounting packages, global data aggregators can validate financial information, minimizing effort and lowering default rates. It's crucial to remember that customers have the power to control access to their data. While maintaining access might be necessary for the duration of a credit facility, lenders must respect borrowers' rights to rescind access at any time. Empowering SMEs with the financial support they need not only fuels economic growth but also ensures a sustainable future for the private sector. Let's continue to innovate and bridge the finance gap for Britain's thriving businesses! Read the full report: https://lnkd.in/dGAXA38u #SMEs #OpenBanking #FinancialInclusion #Innovation #UKEconomy #BusinessGrowth

Landmark Centre for Finance, Innovation and Technology (CFIT) Report Delivers Kalifa Review Recommendations on Open Finance Ezechi Britton MBE, CEO of CFIT, said: “The prize on offer from getting Open Finance right is enormous. For consumers and SMEs, it means more control of your finances and easier access to more affordable credit. For the fintech sector, it is an opportunity for the UK to set global standards and drive growth worldwide. And it dovetails perfectly with the Government’s wider ambition to build a Smart Data economy. We would like to thank our coalition partners for their outstanding work so far. Having definitively proven the business case for Open Finance, we’re now looking forward to working with government and industry on furthering the case for unlocking the necessary datasets, scaling the proofs of concept developed by the Coalition, exploring use cases beyond credit and identifying the commercial model and future framework that will encourage secure data-sharing across financial services as we embrace Open Finance.” https://lnkd.in/eQN7a4Qi Experian Monzo Bank Revolut Mastercard EY Citizens Advice HSBC Financial Conduct Authority Open Banking iwoca Lloyds Banking Group Ksenia Grant Simon Hanson Teresa Lam Charlotte Crosswell OBE Bim Afolami MP Chris Hayward City of London Corporation #FFNews #Fintech #Finance #Banking #Paytech #Payments #Insurtech #Insurance

Open finance could boost UK GDP by £30.5 billion says CFIT CEO. The Centre for Finance, Innovation and Technology (CFIT) has published its report on the benefits of open finance in line with the Kalifa Review. Finextra spoke exclusively with CFIT CEO Ezechi Britton MBE about the key takeaways from this review. CFIT led an open finance coalition with over 60 finance partners as part of this report. This included Citizens Advice, Experian, EY, the FCA, FDATA, HSBC, IBM, Iwoca, KPMG, Lloyds Banking Group, Mastercard, Monzo, and Revolut. Britton says that from reviewing a number of studies they found that “delivering open finance and personal data mobility could boost UK GDP by £30.5 billion.” Britton links their key findings to two proofs-of-concept. The first is that open finance can provide more SME lending. According to CFIT, a pilot with HSBC UK demonstrated that accessing new datasets and auto-populating business loan applications can lead to a significant boost in SME lending decisions. CFIT reports that a quarter of businesses from a sample of SMEs whose loan applications had been referred for manual underwriting, could be given access to finance had open finance been in place. Additionally, they found it could lead to fewer SMEs giving up on applications. Source: https://lnkd.in/epjh4fDR #fintech #finance #openfinance #paymentsolutions #fintechinnovation #financialtechnology #financialservices #fintechnews

The APPG on Fair Business Banking launched its SME Manifesto in Parliament on Monday. There is cross party consensus around prioritising the growth of the CDFI sector and having policies in place that support investment into CDFIs, in recognition of the vital role CDFIs play in supporting SMEs that are underserved by mainstream finance. 👉 The SME Manifesto mentions CDFIs several times, including as part of three of its recommendations: ⭐ Turbocharging the challenger and non-bank lending sector - The new Government should set a target to increase finance supply to social purpose lenders, such as CDFIs, with potential future mandates through a 'Fair Banking Act'. - The Manifesto emphasises the importance of supporting regionally based lending with a social purpose, highlighting CDFIs' role in targeting deprived areas. - Urges collaboration with Better Society Capital (previously Big Society Capital) and other organisations to encourage banks to invest in CDFIs, including setting a target for additional capital within the first 100 days. ⭐Overhaul the bank referral scheme - Many firms declined by mainstream banks could access credit from alternative lenders, highlighting the need for an effective referrals system. - The current Bank Referral Scheme (BRS) has had limited success in addressing the UK's growth challenge. - New platforms could improve signposting to Community Development Finance Institutions (CDFIs), which have a strong track record of lending to firms rejected by major banks. ⭐ Longer term British Business Bank (BBB) support schemes - Extend the Growth Guarantee Scheme to a 5-year funding period to enable long-term planning and investment by lenders. - This extension is crucial for non-bank lenders, like CDFIs, to scale their offerings and improve lending access for underserved SMEs. - The current 2-year scheme limits the impact due to its short duration, preventing finance providers from planning and investing effectively. You can access the Manifesto here https://lnkd.in/eBJAaWqx #SMEManifesto #SMELending #CDFIs

🔎 In the UK, SMEs play a crucial role, contributing nearly two-thirds of employment and an impressive £2.4 trillion in turnover. However, many are facing significant hurdles, with nearly half finding it harder to secure funding recently. ✔️ Lekshmi Nair from Finastra discusses how traditional banks are struggling with outdated processes, while Finastra is providing innovative solutions to enhance efficiency and support SMEs. Read more about this essential issue here: https://okt.to/7uSfAG #SMEs #Finance #Innovation #FinancialInclusion #Finastra

Discover why 40% of SMEs opt for fintech lenders over banks for finance. Research indicates that 70% rely on alternative finance during crises. Read to learn more about the banks' declining support for SMEs and the need for enhanced funding guidance. #SME #Finance #Economy https://hubs.la/Q02n-bym0

The latest CFIT report makes for interesting reading. The CFIT SME Finance Taskforce report continues to stress one critical point: the future of SME lending depends on access to robust, reliable real-time data. Both banks and non-bank lenders need better insights to support these vital businesses. But access to data alone is not enough - it needs to be transformed into consumable analysis and actionable insights. This is something we have been doing at 9Spokes for years, we're not just in the game - we're setting the pace. Our platform is designed to pull in vast quantities of accurate data, giving lenders and SME service providers a crystal-clear view of their customers. We don’t just show you where a business stands today; we provide the leading indicators that predict where it’s headed tomorrow. If you're in the business of financing SMEs, the choice is obvious: The future of serving SME's isn’t just about more data - it’s about better data-driven insights. And that’s exactly what we deliver at 9Spokes. Centre for Finance, Innovation and Technology (CFIT) 9Spokes Ezechi Britton MBE #SMELending #Fintech #SmartData #9Spokes #FinancialHealth https://lnkd.in/eQ5SWucz