In a concerted effort to crack down on economic crime, some of the biggest names in finance and technology have joined forces under a new coalition led by the Centre for Finance, Innovation and Technology (CFIT).
This initiative, which first came to light in June, is focused on developing advanced digital verification systems to safeguard businesses and consumers from the rising threat of fraud.
Among the companies now participating are Amazon Web Services (AWS), Barclays, HSBC, Mastercard and Revolut. Key regulators, including the Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR), have joined the coalition, signalling its wide-ranging influence and ambition.
CFIT action
The coalition aims to develop a standardised digital identity system for implementation across the financial sector, with the goal of significantly reducing fraud, especially in the increasingly sophisticated realm of online transactions. The urgency of this initiative is underscored by the staggering £1.2billion lost to economic crime in the UK last year, with a large proportion attributed to authorised push payment (APP) fraud.
CFIT’s coalition will conduct research and testing over the coming months, focusing on making digital verification more robust and interoperable across different financial institutions. It plans to publish the findings and recommendations in a comprehensive report by March 2025, offering a blueprint for adopting digital verification solutions across the UK.
This initiative builds on CFIT’s previous efforts, including its work on open finance, which highlighted the potential benefits of enhanced data-sharing within the financial sector. By leveraging these insights, the new coalition aims to deliver practical, industry-led solutions that can strengthen the UK’s defences against economic crime and support a more secure and resilient financial ecosystem.
Comments on the coalition
Ezechi Britton MBE, CEO of CFIT, expressed optimism about the coalition’s potential to address the significant impact of fraud on businesses and individuals alike. He noted that the combined expertise of the participating companies would “empower CFIT to produce effective solutions that will protect organisations and consumers and make the UK economy more resilient”.
Sheldon Mills, executive director at the FCA, also highlighted the importance of such collective efforts with fraud a continuously evolving threat. He pointed out that innovation, particularly in regulatory technology, will play a ” positive role to play in addressing fraud”.
Echoing these sentiments, Santander’s CEO, Mike Regnier, stressed that secure payment systems are vital for consumer protection and business confidence. He views digital verification as essential to achieving these objectives, a sentiment also echoed by Elyn Corfield, Lloyds Banking Group’s CEO of business and commercial banking, who expressed delight that “fraud mitigation lies at the heart of its work”.
Sam Edge, global head of fintech for startups at AWS, also highlights the broader economic stakes, stating that “fraud must be effectively countered with industry-led solutions”.
While adding to this, Rory Tanner, head of UK government affairs at Revolut, stressed the importance of developing solutions that are more than just innovative, but “are empirically sound and fully tested to ensure that they deliver the protections that businesses across the UK need to succeed”.
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