More than eight in ten of UK small and medium-sized enterprises (SMEs) would be willing to pay for a Digital Company ID service, according to research commissioned by the Centre for Finance, Innovation and Technology (CFIT).
The polling, conducted by research firm Opinium, canvassed the views of 1,000 decision-makers at UK businesses with fewer than 250 employees. Their responses also showed that the larger the business, the more open it was to paying for a Digital Company ID.
Respondents ranked improved fraud detection, simplification of regulatory compliance and easier account onboarding as the key areas in which potential efficiencies and savings would justify the expense. Half those surveyed said Digital Company ID would lead to more secure payments and avoid payment scams. Just under 60% thought it would help reduce the time taken to submit company accounts, complete tax returns or apply for a license or permit for compliance purposes. And 65% thought it would save money when opening a bank account.
Rob Haslingden, head of impact assessment and engagement at CFIT, says: "With the SME Digital Adoption Taskforce having recently set out its recommendations for driving up tech adoption by SMEs, our research shows that we will be pushing at an open door What’s more, demand should only increase further, as consumers become more comfortable with individual Digital ID, following the recent passage of the Data (Use & Access) Act and the roll-out of the GOV.UK Wallet. This will improve the accuracy of business verification by proving the identity of individual directors and employees.”
In March, CFIT’s industry-wide coalition on fighting economic crime through Digital Company ID published its blueprint report. It found that the verification method would help mitigate against the annual £6.8bn cost of fraud to the UK economy, including through unified and secure data-sharing that disrupts fraud networks and closes exploitable gaps.
CFIT has convened three industry-led working groups, one of which is focused on identifying additional use cases, while the other two are looking at building a viable prototype and defining the necessary trust and governance requirements. These working groups will report their findings and recommendations in December.