More than eight in ten small and medium-sized enterprises (SMEs) in the UK are open to paying for a Digital Company ID service, according to research from the Centre for Finance, Innovation, and Technology (CFIT).
The study, conducted by Opinium, surveyed 1,000 decision-makers in UK businesses with fewer than 250 employees. The results indicated that larger businesses are more inclined to invest in a Digital Company ID.
Key benefits identified by respondents include enhanced fraud detection, simplified regulatory compliance, and streamlined account onboarding. Half of those surveyed believe that a Digital Company ID would lead to more secure payments and help prevent payment scams. Nearly 60% felt it would reduce the time needed to submit company accounts, complete tax returns, or apply for necessary licenses or permits. Additionally, 65% believed it would lead to cost savings when opening a bank account.
Rob Haslingden, head of impact assessment and engagement at CFIT, commented: “As the SME Digital Adoption Taskforce outlines its recommendations for increasing tech adoption among SMEs, our research indicates strong demand for a Digital Company ID. This interest is expected to grow as consumers become more accustomed to personal Digital IDs, following the recent passage of the Data (Use & Access) Act and the launch of the GOV.UK Wallet. These developments will enhance business verification by establishing the identities of directors and employees.”
In March, CFIT’s coalition on combating economic crime through Digital Company ID released a blueprint report that found this verification method could help mitigate the £6.8 billion annual cost of fraud to the UK economy. It emphasized the importance of unified and secure data-sharing in disrupting fraud networks.
CFIT has established three industry-led working groups focused on identifying additional use cases, developing a viable prototype, and defining the necessary trust and governance requirements. These groups are expected to report their findings and recommendations in December.