The Centre for Finance, Innovation and Technology has published its detailed plan for introducing Digital Company IDs to tackle economic crime and reduce fraud. This initiative is projected to save UK businesses billions annually by enhancing efficiency, security, and trust.
The Digital Company ID aims to reduce regulatory burdens for businesses, particularly SMEs, while saving financial institutions an estimated £1.7 billion annually in compliance costs. By enabling secure data sharing, the system is also expected to counter the growing £6.8 billion annual cost of fraud in the UK and disrupt fraud networks.
CFIT’s proposal stems from extensive research, data analysis, and consultation with industry leaders, regulators, and policymakers. The coalition has outlined seven key recommendations, including developing a prototype, creating interoperability standards, and appointing a lead authority for governance.
CFIT Chair Charlotte Crosswell OBE emphasized that fraud imposes unnecessary costs on businesses, stifles growth, and hampers the UK’s reputation. The new system, supported by cross-sector collaboration, aims to close gaps exploited by fraudsters and transform the business landscape in the UK.
The coalition calls for government, regulators, and financial institutions to adopt the necessary frameworks to make Digital Company ID a reality, securing its potential to bolster the economy while protecting businesses and consumers.
