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Leading finance and technology firms have formed a coalition in the UK to tackle economic crime via enhanced digital verification, according to an announcement by the Centre for Finance, Innovation and Technology (CFIT).
The coalition includes prominent companies Amazon Web Services (AWS), Barclays, HSBC, Mastercard, and Revolut, as well as UK regulators the Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR).
It aims to develop innovative solutions to protect businesses and consumers from fraud.
CFIT chief executive Ezechi Britton MBE expressed his enthusiasm for the initiative, saying, "I am delighted that so many leading companies will be uniting to combat fraud, which can have a devastating impact on businesses and place immense stress on individuals."
Britton emphasised that the coalition's collective technical expertise will be instrumental in creating effective solutions to enhance the UK’s economic resilience.
The coalition's focus will be on the development and testing of a digital corporate identity, a move that CFIT is hoping will reduce the opportunities for criminals to exploit financial systems.
This initiative follows CFIT’s successful inaugural coalition on Open Finance, which highlighted the potential of data-sharing technology to improve financial outcomes for UK consumers and businesses.
The new coalition will conduct data-driven research to pave the way for enhanced digital verification, with input from industry heavyweights such as Lloyds Bank, NatWest Bank and Monzo.
The final blueprint, expected in March 2025, will provide recommendations for implementing a digital verification solution across UK institutions.
The value of tackling fraud
Fraud now accounts for 40 percent of all crime in the UK and poses a significant threat to both consumers and businesses.
Sam Edge, global head of Fintech for Startups at AWS, stressed the importance of countering fraud effectively to ensure the continued growth of the UK economy, saying AWS is committed to working alongside the coalition to deliver viable solutions.
The coalition's efforts are not just about technology but will also focus on fostering a safer and more secure financial ecosystem.
"The FCA is supportive of the new coalition and welcomes collective initiatives toward reducing financial crime," said Sheldon Mills, FCA executive director.
Mills acknowledged the evolving nature of fraud and the crucial role of innovation and technology in addressing this challenge, adding that the initiative is key to driving economic growth across the UK.
Santander CEO Mike Regnier echoed these sentiments, emphasising the importance of secure payments in building consumer and business confidence.
"Payments must be safe and secure to ensure our customers have protection against fraud, and businesses have the confidence to trade with them," he said.
Cutting-edge tech
The digital identity initiative is seen by those involved as a crucial step in safeguarding the future of the UK’s financial sector.
Robin Tombs, CEO of Yoti, said that inadequate digital identity processes hinder economic growth and free trade. "The work that CFIT is leading will help to address this key issue," he added.
As the coalition moves forward, its work will be informed by cutting-edge identity management tools such as the Legal Entity Identifier (LEI) and the verifiable LEI (vLEI), which are central to the global fight against financial crime.
"By enabling the unique identification and automatic verification of legal entities across different economic sectors and jurisdictions, the LEI and vLEI not only enhance transparency but also fortify the integrity of the global digital economy," explained Alexandre Kech, CEO of GLEIF.
The initiative has also attracted the support of data provider Dun & Bradstreet. The Head of Europe for Dun & Bradstreet, Ed Thorne, highlighted the role of the firm’s D-U-N-S number in supporting the UK Digital ID.
"We welcome the opportunity to join the CFIT coalition’s work to strengthen digital verification for businesses and help protect UK Financial Service businesses from financial fraud and economic crime," he stated.
