By Busola Bamidele
The SME Finance Taskforce, led by the Centre for Finance, Innovation and Technology (CFIT), has proposed creating mechanisms for easier data sharing to enhance cash flow for small UK businesses.
The taskforce, comprised of major players like Sage, OakNorth, Revolut, Lloyds Bank, HSBC, and Experian, suggests a legislative framework for “smart data schemes” similar to the open banking model.
In their recent SME Action Plan report, they argue that enabling SMEs to access their own data from suppliers could streamline the process of securing external financing.
The current manual data collection adds unnecessary costs and complexity for lenders. Comprehensive datasets from SMEs could guide better funding decisions.
The proposed policy might be implemented through the Digital Information and Smart Data Bill, as noted in the King’s Speech. CFIT chair Charlotte Crosswell highlighted the initiative’s potential to energize the UK economy without substantial public spending.
The taskforce also called for improved digital tax data access, a reformed Companies House, and aligned digital invoicing practices.
