Lloyds Bank and Mastercard are to lead a new Centre for Finance, Innovation and Technology (CFIT) coalition which will develop SME-focused solutions, including an SME finance education tool and a digital marketplace.

CFIT said that the new coalition will build on the work of its Open Finance coalition and SME Finance Taskforce by developing the technology, policy and regulatory solutions to help the UK’s 5.6 million small businesses raise external finance successfully and efficiently.

It added that the coalition aims to boost the supply of SME lending by developing supply-side proofs of concept, such as an SME resilience index that enables lenders and other financial service providers to make more informed decisions.

CFIT said that more organisations are planning to join the coalition later this year.

CFIT was launched in 2023 with backing from HM Treasury and the City of London Corporation to provide taskforces on topics including Open Finance, smart data and Economic crime.

Commenting on the news Jane Prokop, Mastercard executive vice president and global head, small and medium enterprises, said that when SMEs seek to borrow money they are often unable to receive funds at a reasonable cost or in the needed amount.

“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,” she added. “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.”

Elyn Corfield, chief executive, business & commercial banking at Lloyds Bank said that by entering into a strategic partnership with CFIT, the bank aims to create “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,” continued Corfield.

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