The Centre for Finance, Innovation and Technology (CFIT) said Tuesday (Jan. 7) that Mastercard and Lloyds Bank agreed to partner with it and fund its new industry-led coalition that will develop solutions to help the United Kingdom’s 5.6 million small businesses raise external finance.
The coalition will be launched during the first quarter, and additional organizations are set to join it, CFIT said in a Tuesday press release.
CFIT was launched in 2023 with backing from HM Treasury and the City of London Corporation. It is supported by both government and industry, and it aims to be the U.K.’s independent innovation accelerator for financial services, according to the release.
The organization previously launched coalitions focused on Open Finance and Economic Crime, the release said.
As part of its efforts to help small businesses raise external finance more readily, successfully and efficiently, the new coalition will focus on technology, policy and regulatory solutions, per the 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 more informed decisions.
“Small businesses are the backbone of the U.K. economy, but they are too often reluctant borrowers, 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,” Jane Prokop, executive vice president and global head of small and medium enterprises at Mastercard, said in the release. “When they do seek to borrow, they frequently are unable to receive funds at a reasonable cost or in the needed amount.”
Prokop said the CFIT’s new coalition “will ensure small businesses get the funding that they need.”
Elyn Corfield, CEO of business and commercial banking at Lloyds Bank, said in the release: “If we can improve awareness of different financial options and increase the number of [SMBs] applying for suitable finance so that they can invest in their infrastructure, products and services, they can better play their vital role in boosting U.K. growth.”
CFIT announced the formation of its anti-financial crime coalition in September, saying the group aimed 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, Revolut, Santander, the Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR).