SME Taskforce Reveals UK Growth Strategy
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A taskforce formed in April by the Centre for Finance, Innovation & Technology (CFIT) has published a report with a seven-point agenda. It aims to put the Digital Information and Smart Data Bill at the top of their list.
It also wants to fund a “Smart Data Challenge” for small businesses, and make improvements to HM Treasury’s bank referral and credit data sharing systems. It also plans to quickly update Companies House to make sure company information is more uniform and verified.
The Proposals Include UK E-invoicing Aligning Internationally
The report covers plans to open up private-sector data by offering digital receipts from HMRC and improving access to tax information for approved organizations. Additionally, it includes working on proposals for an e-invoicing system in the UK to match with other countries and help people trust and understand new alternative lenders better.
The main focus of the plan is to use high-quality data to help small and medium-sized businesses (SMEs) grow and get funding. This report for SMEs builds on CFIT’s earlier report on open finance from this year.
Charlotte Crosswell, the chair of CFIT, stated that the finance and fintech industries have teamed up to create a complete plan that will boost the UK economy by improving the lending process for both small businesses and lenders.
Charlotte also highlighted that what is particularly exciting about the program is that it does not need a lot of public spending. She acknowledged that while implementing policies will take some time, there are many actions the industry can take with the help of policymakers. These actions can quickly build momentum, increase lending to small businesses, and unlock growth.
The Taskforce Includes Organizations Like The Federation Of Small Businesses
Among the taskforce members are the Federation of Small Businesses (FSB), Allica Bank, Lloyds Banking Group, Mastercard, Sage, OakNorth, HSBC, Revolution, iwoca, and Experian. Tulip Siddiq, the Economic Secretary to the Treasury, said one important factor to business growth and success is ensuring it has quick and continual access to finance.
Recent and improved technologies are now available, an example is Open Finance which can play a crucial part in unfolding the hidden abilities of small and medium enterprises all over the nation. He said he would carefully look into the recommendations of taskforces.
The Executive Vice President of small and medium enterprises and Mastercard, Jane Prokop, commented that lending more to small and medium enterprises has greatly helped in building a stronger economy.
Helping businesses to grow and unlock their potential, he said this is possible via the Open Banking and SME. He further said the SME division Mastercard is helping, improving, and creating monetary solutions for small and medium enterprises all over the United Kingdom, giving more detailed tools for easy cash flow.
The firm plans to boost the United Kingdom’s economic size via access to resources. This is its future step in boosting the financial results for SMEs. This move will make other financial systems invest in the United Kingdom.
