CFIT begins work on prototypes, use cases and governance for digital company ID

The formation of the working groups represents the crucial next step in CFIT’s strategy to fight economic crime through digital verification. The three groups will focus on building a viable Digital Company ID prototype (with an exchange of real data between partners), identifying additional use cases for Digital Company ID and defining the necessary trust and governance requirements.

The working groups will be led by the financial service associations UK Finance and the Financial Data and Technology Association (FDATA); the financial technology company Select ID; and the global law firms A&O Shearman and Skadden. A range of other industry-leading organisations, including key partners such as Barclays, GLEIF, Lexis Nexis Risk Solutions, Mastercard, Monzo, Moody's, Skadden, Transunion will participate and provide crucial insights.

These working groups take forward the work and recommendations of CFIT’s second industry-wide coalition, which published its blueprint report ‘Fighting Economic Crime Through Digital Verification’ last month. The report outlined seven recommendations for implementing Digital Company ID, two of which will be directly addressed by the work of these three groups.

Research undertaken by the coalition demonstrated that widespread adoption of Digital Company ID would help mitigate the £6.8bn annual cost of fraud to the UK economy, boost efficiencies for banks and other financial institutions and reduce financial services compliance costs by £1.7bn annually. Furthermore, it will support the creation of a secure smart-data economy and aid economic growth.

This marks a significant moment for the UK financial sector. By bringing together leaders across banking, technology and government, CFIT is creating the conditions for a trusted, operationally viable Digital Company ID to take shape. This collaboration is not only key to tackling the rising costs of fraud, but also to improving the ease and security of doing business in the UK - with the ultimate aim of supporting sustained economic growth.

Leon Ifayemi, Director of Coalitions & Research at CFIT, said: “These three working groups reflect the collaborative effort required to build a Digital Company ID, and the collective determination to thwart fraudsters entering the financial system. By focusing on real-world applications, market testing and robust governance, we aim to make the UK a global leader in economic crime prevention and drive innovation. We are extremely grateful to UK Finance, FDATA, Select ID, A&O Shearman and Skadden, as well as all our other partners, for their continued investment in this critical issue, and we’re excited about what we can achieve together.”

Nikki Johnstone, Partner at A&O Shearman and Co-Chair, Trust & Governance Framework Working Group, said: “A Digital Company ID has the potential to revolutionise how businesses and financial institutions interact, significantly reducing fraud and helping to oil the wheels of economic growth. However, this vision can only be realised with strong legal and regulatory frameworks in place. Our working group, which combines legal and sector experts, is committed to creating a standardised, secure method for data sharing, enabling us to foster innovation while ensuring compliance with the highest regulatory standards."

Aysha Fernandes, Director, Commercial Finance at UK Finance and Co-Chair, Market Opportunity Working Group, said: "The market opportunity for Digital Company ID is vast. It will offer businesses and SMEs a more effective way to combat fraud as well as making some of the day-to-day realities of doing business quicker and easier. Our small businesses are the backbone of our economy, and by implementing Digital Company ID, we can equip them with the secure, efficient tools they need to thrive in a competitive global market. This working group will focus on evaluating the commercial viability of Digital Company ID. By examining priority use cases and testing commercial models, our working group will ensure that this initiative not only combats economic crime but also unlocks significant growth opportunities for our small and medium-sized businesses.”

Simon Toms, Partner at Skadden and Working Group Secretariat, said: "We expect the Digital Company ID to greatly improve and streamline the verification and transaction processes for businesses. We’re proud to be secretariat to these working groups, which will deliver alongside CFIT’s MVP consortium to build, test and validate a working Digital Company ID prototype to support SMEs and financial institutions. This group will help ensure that Digital Company IDs are not only secure and efficient, but also truly scalable. This approach will not only strengthen businesses but also reinforce the UK’s position as a global leader in fintech innovation.”