CFIT to Launch New Coalition Focused on SME Financing in 2025

The Centre for Finance, Innovation and Technology (CFIT) of the UK is set to launch a new coalition in the first quarter of 2025, with the backing of key industry players, including Mastercard and Lloyds Bank. The coalition aims to enhance small and medium-sized enterprises’ (SMEs) access to external finance through the development of targeted technological, policy, and regulatory solutions.

CFIT’s next coalition will build on its previous initiatives, such as the Open Finance coalition and SME Finance Taskforce, with a focus on creating practical tools for SMEs. Planned projects include a digital finance education tool and a digital marketplace tailored to SMEs. The coalition will also explore supply-side innovations, such as an SME resilience index, to improve decision-making for lenders and financial service providers.

The coalition’s objectives align with CFIT’s broader strategy of fostering collaboration across the financial services ecosystem to drive innovation. Since its establishment in 2023, CFIT has engaged in multiple coalitions and taskforces, addressing issues like economic crime and financial inclusion. This new coalition marks a shift to a hybrid funding model, incorporating both public and private investments, as CFIT continues to expand its operations.

Charlotte Crosswell, Chair of CFIT, commented on the initiative, saying, “This new strategic agreement with industry partners positions CFIT strongly for its next phase of growth, and is testament to the success of our coalition-led approach to date. We are grateful for the support of Mastercard and Lloyds Bank and look forward to welcoming more strategic and coalition partners to further advance the progress we’ve already made on SME Finance. We are also working closely with industry on other key projects for 2025, such as smart data schemes in financial services and delivering more inclusive financial service propositions.”

Jane Prokop, Mastercard’s Executive Vice President and Global Head of Small and Medium Enterprises, highlighted the challenges SMEs face in accessing finance: “Small businesses are the backbone of the UK economy, but they are too often reluctant borrowers, deterred from accessing the finance they need to prosper due to previous bad experience or cultural factors such as greater risk aversion than in other markets. When they do seek to borrow, they frequently are unable to receive funds at a reasonable cost or in the needed amount. Mastercard is delighted to lead this next coalition with CFIT and we endorse this collective initiative that will ensure small businesses get the funding that they need. We believe that this is in the interests of all economic stakeholders and that UK GDP growth will result from the coalition’s work programme.”

Elyn Corfield, CEO of Business & Commercial Banking at Lloyds Bank, added, “SMEs play an essential role in our communities, providing services and creating jobs. By entering into a strategic partnership with CFIT for this next coalition, we aim to accelerate the development of the SME finance market, creating smart-data-driven solutions that help SMEs access appropriate funding. If we can improve awareness of different financial options and increase the number of SMEs applying for suitable finance so that they can invest in their infrastructure, products and services, they can better play their vital role in boosting UK growth.”

The initiative underscores CFIT’s focus on delivering actionable outcomes through industry collaboration and is expected to attract additional participants as the coalition develops throughout 2025.