The UK is making strides toward the creation of a digital company ID, aimed at enhancing business efficiency and reducing fraud, according to the Centre for Finance and Innovation Technology (CFIT).
Over 70 organizations, including major financial institutions, technology companies, and regulators, have contributed to the initiative. Key participants include Lloyds Bank, NatWest Group, Monzo, Mastercard, Visa, HSBC, Barclays, Experian, and the FCA, among others.
The initiative proposes a virtual passport model, enabling businesses to securely verify their identity for accessing finance and conducting daily operations.
Anticipated Benefits
Research conducted by the coalition indicates that a digital company ID could:
- Prevent fraud by reducing vulnerabilities in identity verification.
- Boost operational efficiency for banks and businesses.
- Cut compliance costs for financial institutions.
- Facilitate the growth of a secure smart-data economy.
The Chancellor of the Exchequer highlighted the potential of digital ID systems in the National Payments Vision, published in November. The government pledged to consider CFIT’s findings to support innovation in combating economic crime.
Future Milestones
CFIT Chair Charlotte Crosswell announced that the coalition would reveal its recommendations and next steps in March 2025. She emphasized the urgency of combating economic crime, stating:
“Economic crime remains a major threat to the UK’s economic security and has a profoundly distressing impact on consumers and businesses. At CFIT, we are committed to addressing this and making the financial services industry more robust against fraud.”
The initiative underscores the UK’s ambition to leverage smart data and digital ID technologies to strengthen its financial ecosystem and drive economic growth.