The SME Finance Taskforce has unveiled its coalition plan aimed at enhancing the UK economy by accelerating lending and improving access to finance for 5.5 million small and medium-sized enterprises (SMEs).
Formed by the Centre for Finance, Innovation & Technology (CFIT) in April, the taskforce has outlined a seven-point action plan in their report:
1. Prioritise the Digital Information and Smart Data Bill
2. Fund and support an SME “Smart Data Challenge”
3. Review and improve HM Treasury’s Bank Referral and Commercial Credit Data Sharing (CCDS) Schemes
4. Accelerate reform of Companies House, with a focus on standardising and verifying company information
5. Unlock private-sector data by providing digital receipts from HMRC and enhancing access to tax data for approved organisations
6. Develop and consult on proposals for an e-invoicing scheme to align the UK with international markets
7. Foster greater trust and understanding in the use of alternative specialist lenders
Central to this plan is the utilization of high-quality data, which will empower SMEs to secure funding for growth and expansion. This report builds upon CFIT’s earlier blueprint on open finance.
Charlotte Crosswell, chair of CFIT, remarked, “The financial services and fintech industry has collaborated to create a comprehensive program that will invigorate the UK economy by improving the lending experience for both SMEs and lenders. Importantly, this approach doesn’t require significant public spending. Although policy implementation may take time, there are various industry leverage points that, with policymakers’ support, could quickly enhance SME lending and stimulate growth.”
Members of the taskforce include iwoca, Sage, OakNorth, Allica Bank, Experian, HSBC, Lloyds Banking Group, Mastercard, the Federation of Small Businesses (FSB), and Revolut.
Economic Secretary to the Treasury, Tulip Siddiq, emphasized the importance of ensuring businesses have prompt and efficient access to finance, stating, “Innovative technologies, such as Open Finance, can play a vital role in unleashing the potential of SMEs across the country, and I will carefully consider the taskforce’s recommendations.”
Jane Prokop, executive vice president for small and medium enterprises at Mastercard, added, “Increasing lending to SMEs strengthens a sustainable economic base by empowering businesses to realise their growth potential. Through our Open Banking and SME divisions, Mastercard is already facilitating innovative financial solutions that address access to finance for SMEs in the UK, providing them with advanced tools for cash flow management. The SME Action Plan to enhance UK economic growth by improving access to data represents a natural progression in advancing financial outcomes for SMEs, and its implementation will encourage the financial ecosystem to invest in the UK.”