James Dillon’s Post

The recent CFIT SME Finance Taskforce report underscores the pivotal role of financial organizations in driving business growth and economic resilience. As the landscape evolves, the demand for innovative, data-driven solutions that empower SMBs is more pressing than ever. At 9Spokes, we’re dedicated to equipping financial organizations with the tools they need to empower their SMB customers through informed decision-making and sustainable growth. Reach out to learn how we can help drive your team's data initiatives. #financialservices #smb #opendata #cashflow #openfinance

This year has been declared the ‘Year of the SME’, and at CFIT, we're looking forward to being part of forward-looking initiatives to support the growth of small and medium-sized enterprises across the UK.   Key highlights so far include: 🔹the inaugural meeting of the Small Business Council in February to tackle issues surrounding financial access and growth barriers for SMEs. 🔹addressing the regulatory challenges in March related to using personal guarantees for loans, highlighting the urgent need for reforms in SME financing. 🔹and most recently, the launch of the Open Finance Taskforce driven by CFIT and Chaired by Charlotte Crosswell OBE. These strategic steps strengthen our commitment to utilising Open Finance to support SMEs, aiming to extend the successful principles of Open Banking to broader data utilisation.   Looking ahead, we're keen on identifying key alternative proxy sources of HMRC and Companies House data, which, if shared securely via API, could significantly improve the credit assessment process.   Learn more about how we work towards making 2024 a landmark year for SMEs: https://lnkd.in/dCsK9VBk    #OpenFinance

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

„No risk, no reward“. Embedded finance (EF) might be a business model not only for American but also for European banks to expand their ecosystem and distribution footprint with relatively low operational costs. McKinsey distinguishes three archetypes of banks that have different trade-offs in implementing EF and assesses their opportunities and risks through EF. EF is seen as a multi-billion market potential with double-digit growth. EF is defined as „delivery of financial products, such as loans, insurance and payments, by non-financial entities within the context of a broader non-financial offering.“ Some of the proposed options for banks are: * strategically partner with independent software vendors (ISVs) and marketplaces * specialize in lending as a service * acquire or build a distributor * offer balance sheet and risk services ….and many more. We will discuss the profitability and rentability challenge of European banks during the „Banking Summit 2024 in Vienna“ on April 19th, 2024, where I have the pleasure to contribute as a panelist. #BankingSummit2024, Vienna #BusinessCircle.at #EmbeddedFinance (EF) #Banking #CapitalMarkets #CFO

I'm pleased to share that the Centre for Finance, Innovation and Technology (CFIT) led SME Finance Taskforce has published a comprehensive action plan designed to transform the UK economy by enhancing access to finance for SMEs. The report, developed in collaboration with leading banks, fintechs and industry experts, highlights the critical role of SMEs in driving economic growth and proposes strategic recommendations to bridge the current funding gap. SMEs are the backbone of the UK economy, employing over 60% of the private-sector workforce and contributing over 50% of the UK’s economic turnover. However, lending to SMEs declined by 20% in real terms over the past decade, creating a significant funding gap, estimated at £22 billion. The taskforce’s recommendations aim to reverse this trend, making it easier for SMEs to obtain the financing they need to grow, innovate and thrive. By implementing the suggested recommendations, we can enhance the financial landscape for SMEs, fostering a more dynamic, resilient and inclusive economy. A big thank you to the Open Banking secretariat for their support, as well as all the other taskforce partners and contributors for their dedication and insightful contributions. Read the full report below 👇

Some great insights and recommendations in this new report. I’m particularly a fan of the proposed move to e-invoicing and accelerating the reform of SIC codes! Centre for Finance, Innovation and Technology (CFIT) 👏👏

Great to see the Centre for Finance, Innovation and Technology (CFIT) report launched for how smart data can drive economic growth by improving SME Lending. We are proud to have contributed to finding actionable solutions to overcome the lack of access to crucial data, which hinders SMEs from securing the finance that will allow them to scale. Yapily Founder and CEO, Stefano Vaccino, particularly highlighted the importance to prioritise the Digital Information and Smart Data Bill in his contribution. Read the full report to learn more. #SMELending #OpenBanking #OpenFinance #SmartData #DigitalEconomy

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

We are excited to announce the launch of the CFIT-chaired SME Finance Taskforce report: ‘Smart Data: improving SME lending to drive economic growth’. Following the recent announcement of the Digital Information and Smart Data Bill by The Labour Party Government, the report offers actionable solutions to overcome the lack of access to crucial data, which hinders SMEs from securing the finance that will allow them to scale. Here are our seven key recommendations: 📜 Prioritise the Digital Information and Smart Data Bill. 🧩 Fund and support an SME “Smart Data Challenge”. 💡 Revamp HM Treasury’s Bank Referral and Commercial Credit Data Sharing (CCDS) Schemes. 🚅 Fast-track reform of Companies House, in particular, the standardisation and verification of Company information. 🗝️ Unlock private-sector data by utilising digital receipts from HM Revenue & Customs and improved access to tax data for approved organisations. 📩 Develop and consult on an e-invoicing scheme for the UK to align with international markets. 🏛️ Boost trust in using new alternative specialist lenders. As SMEs make up 60% of the private-sector workforce, enabling them to access the finance they need is essential for the economic growth of the UK. With a significant shift towards challenger banks and alternative lenders, these recommendations are more important than ever as UK SMEs face a growing funding gap. We are very grateful to all our partners, including iwoca, Sage, OakNorth, Allica Bank, Experian, HSBC, Lloyds Banking Group, Mastercard, Federation of Small Businesses (FSB) and Revolut, for their invaluable contributions to the report. We would also like to thank the Open Banking secretariat, who has been a vital part of this coalition. Read the full report and join the discussion: https://lnkd.in/ekvN9mpS #UKFintech #SmartData #SMEGrowth #SMEFinance

When SMEs do well, they lift the whole economy with them, so it's great to see that Sage is on the front foot in helping these businesses thrive. We're going through tricky times and support for SMEs is vital which is why Sage and partners like Swoop must have their voices heard in the corridors of power.