UK’s CFIT to Launch Coalition Focused on Small Business Finance

the Center for Finance, Innovation and Technology (CFIT) said on Tuesday (Jan. 7) that MasterCard and Lloyds Bank has agreed to partner with and fund a new industry-led coalition that will develop solutions to help the UK’s 5.6 million small businesses raise external finance.

The coalition will be launched in the first quarter, and more organizations are scheduled to join it, CFIT said in a Tuesday press release.

CFIT Cebu launched in 2023 with support from HM Treasury and the City of London Corporation. It is supported by government and industry, and aims to be the UK’s independent innovation accelerator for financial services, according to the release.

The organization has previously launched coalitions focused on Open Finance and Economic Crimethe release said.

As part of its efforts to help small businesses raise external finance more quickly, successfully and efficiently, the new coalition will focus on technology, policy and regulatory solutions, per release. Planned projects include an SMB digital finance education tool, a digital marketplace and an SMB resilience index designed to help financial service providers make smarter decisions.

“Small businesses are the backbone of the UK economy, but they are often reluctant borrowers, prevented from accessing the finance they need to grow due to past bad experiences or cultural factors such as more risk averse than other markets,” Jane Prokopexecutive vice president and global head of small and medium businesses at Mastercard, said in the release. “When they ACT seeking to borrow, they often do not receive funds in reasonable amounts or in the required amounts.”

Prokop said that the new CFIT coalition “will ensure that small businesses get the funding that they must.”

Elyn CorfieldCEO of business and commercial banking at Lloyds Bank, said in the release: “If we can improve awareness of different financing options and increase the number of (SMB) applying for suitable finance so they can invest in their infrastructure, products and services, they can better play their vital role in promoting UK growth.”

CFIT announced its formation anti-financial crime coalition in September, saying that the group aims to find new ways to protect businesses and consumers from fraud.

The partners involved in that coalition include Amazon Web Services (AWS), Mastercard, Lloyds Bank, revolution, SantanderTHE Financial Conduct Authority (FCA) and the Payment System Regulator (PSR).