The SME Finance Taskforce reveals a series of objectives to improve the UK’s economic growth
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The SME Finance Taskforce, formed in April and chaired by the UK’s Centre for Finance, Innovation, and Technology (CFIT), recently released a plan to boost the country’s economy. The idea is to do it by speeding up lending and access to finance for 5.5 million SMEs.
The SME Finance Taskforce’s plan
The Taskforce released a seven-point plan of action, and the goals include:
- Prioritizing digital information and Smart Data Bill;
- Funding and supporting a SME Smart Data Challenge
- Reviewing and improving HM Treasury’s Bank Referral and Commercial Credit Data Sharing (CCDS) Schemes;
- Accelerating reform of Companies House, especially standardization and verification of Company information;
- Unlocking private sector data by providing digital receipts from HMRC and improved access to tax data for approved organizations
- Developing and consulting on various proposals for e-invoincing schemes that would allow the country to align with international markets
- Enabling greater trust and understanding in using new alternative specialist lenders.
The plan’s core is to use high-quality data and enable SMEs to expand and receive additional funding. This will allow them to grow and scale.
The new SME plan represents an expansion of the CFIT’s blueprint report on open finance from 2023. Commenting on the plan, CFIT’s chair, Charlotte Crosswell, stated that the financial services and the fintech sector have worked together to create this comprehensive program. The goal is to energize the UK economy by improving the lending experience for both the lenders and the SMEs.
Crosswell added: “What’s particularly exciting is that this doesn’t require significant public spending. While policy implementation inevitably takes time, there are so many levers that industry can pull with the support of policymakers, to quickly build momentum, boost SME lending and unlock growth.”
Who is on the task force?
The task force members include a number of high-profile players from the financial sector, including Revolut, iwoca, OakNorth, the Federation of Small Businesses, Sage, Allica Bank, Lloyds Banking Group, HSBC, Mastercard, and Experian.
Another comment from Tulip Siddiq, the Economic Secretary to the Treasury, stated that ensuring that businesses can access finance quickly and efficiently is crucial for their success and growth. “New and innovative technologies, such as Open Finance, can play an important part in unlocking the potential of SMEs across the country and I will carefully consider the taskforce’s recommendations.”
Meanwhile, Mastercard’s executive VP for small and medium enterprises, Jane Prokop, said that Increasing lending to SMEs will help with building a stronger and more sustainable economic base. It supports businesses and allows them to unlock their true growth potential.
