The Centre for Finance, Innovation and Technology (CFIT) has announced the founding members of its ‘Open Finance Coalition’, which aims to leverage financial data to improve outcomes for small and medium enterprises (SMEs) and consumers.
CFIT’s CEO, Ezechi Britton MBE, discussed the coalition’s rapid formation, ambitious agenda, and objectives for enhancing the UK’s status as a global fintech leader. The establishment of the coalition aligns with the recommendations from the Kalifa Review of UK Fintech, which highlighted the importance of targeted fintech policies to scale the sector. CFIT, supported by the government but guided by the private sector, focuses on ‘Inclusion and Recovery’, bringing together banks, tech companies, data providers, fintech firms, and policymakers to tackle challenges like financial inclusion and SME lending.
Britton emphasized the coalition’s mission to empower SMEs and consumers by providing greater access to and control over their financial data, which could unlock an estimated £1.5 trillion currently held in SME bank accounts. The coalition comprises a diverse range of initial members including the Association of British Insurers, Amazon Web Services, Experian, HSBC, Innovate Finance, Monzo, Revolut, and others, with support from the Financial Conduct Authority (FCA).
CFIT anticipates its coalitions will last between six to twelve months, with the first Open Finance Coalition targeting a six-month timeline. Britton highlighted the importance of tight deadlines, stating that this approach has allowed for swift collaboration among partners, a process that typically would take much longer.
The organization’s role centers on innovation through collaboration, ensuring a level playing field that overcomes barriers to scaling. Britton expressed a vision for the UK to become the leading destination for fintech startups and growth.
Since his appointment as CEO in February 2023 and assuming the role in April, Britton and his team have made significant strides in assembling the coalition. He noted that they have quickly established the organization, developed a core team, and are actively recruiting new talent.
Britton also emphasized the importance of action, encouraging firms or institutions interested in future coalitions to engage with CFIT. He called for collaboration in addressing existing challenges and laying out a roadmap for future innovations.
In a press release about the initiative, Andrew Griffith, MP and Economic Secretary to the Treasury, remarked on the UK’s leadership in adopting Open Banking, highlighting the goal of creating an inclusive financial data-sharing market. He expressed enthusiasm for CFIT’s efforts through the coalition, which aims to enhance consumer and SME outcomes.
Jessica Rusu and Sheldon Mills from the FCA echoed this sentiment, reaffirming their commitment to support competition and innovation in financial services through collaboration with the coalition.