United Kingdom's CFIT appoints previous head of innovation at Financial Conduct Authority as new CEO
UK's Centre for Finance, Innovation and Technology (CFIT) Drives Fintech Innovation
The Centre for Finance, Innovation and Technology (CFIT), a UK government-backed organization, is at the forefront of driving innovation and addressing challenges in the UK's financial ecosystem. Established in 2023, CFIT operates as a private sector-led body, fostering industry-wide coalitions to develop practical technology solutions that solve significant fintech challenges.
Launched on the recommendation of an HMT-commissioned study called the UK's Fintech Strategic Review, CFIT has been instrumental in setting a blueprint for financial innovation in the UK and addressing the barriers to scaling the fintech sector.
Focus Areas and Initiatives
CFIT's key focus areas include digital ID and economic crime, SME lending and credit gap, and emerging technologies such as AI, tokenisation, and digital assets.
In the realm of digital ID and economic crime, CFIT has spearheaded the development of a Digital Company ID, aimed at combating economic crime. This initiative involves industry-led working groups building prototypes, defining use cases, and establishing standards for trust and governance around digital identities for companies.
To address the UK's SME credit gap, a major project involves a coalition including Mastercard, Lloyds Banking Group, and HSBC. This coalition works on creating smarter lending models by leveraging alternative commercial credit data, focusing on SMEs with 3-50 employees and especially those in economically challenged regions to improve their access to finance and growth opportunities.
Under the leadership of the incoming CEO Anna Wallace, CFIT will expand its efforts to solve fintech challenges linked to AI, tokenisation, and digital assets. Wallace's background in innovation at the FCA and her fintech investment experience position her to advance CFIT's work toward delivering prototype solutions, roadmaps, and policy proposals in these cutting-edge areas.
Partnerships and Collaboration
CFIT's success largely stems from its strong partnerships with government bodies and industry leaders, enabling collaborative progress on fintech innovation and regulatory frameworks aligned to digital finance advancements.
Anna Wallace, the new CEO of CFIT, is described as the ideal candidate to lead CFIT through its next chapter with its newly adopted hybrid model. CFIT has announced a shift to a hybrid model, where CFIT will simultaneously run publicly and privately funded coalitions. This move is aimed at better supporting scale-up companies, speeding up regulatory authorization for new projects, and implementing a 'Wholesale Financial Markets Digital Strategy'.
The measures also include closer communication with Treasury departments and the FCA, as emphasized by Ezechi Britton, a key figure in CFIT's operations. Britton stated that the regulator's role is to protect consumers and create an even playing-field for innovation.
On 15 July, the Chancellor of the Exchequer presented a series of measures aimed at helping fintech companies and encouraging payments innovation in the UK. HM Treasury and the City of London Corporation committed a total of £5.5 million (about $6.84m) of seed funding over three years to get CFIT off the ground.
Anna Wallace, who will start her new role at CFIT on 1 September, was previously head of innovation at the UK's Financial Conduct Authority (FCA). She also co-founded and funded the Cambridge Centre for Alternative Finance (CCAF)'s SupTech Lab, launched just over three years ago, backed by funding of $3.1m (about £2.36m) from the Gates Foundation.
In a fireside chat, Britton mentioned that CFIT is in constant communication with Treasury departments and the FCA, underlining the collaborative nature of CFIT's work. The UK, despite seeing 'broadly flat' funding volumes for fintech companies compared to the second half of 2024, lost second place in the global fintech investment charts to the United Arab Emirates (UAE). However, with the efforts of organisations like CFIT, the UK continues to strive towards innovation and growth in the fintech sector.
[1] CFIT Annual Report 2024-2025 [2] Mastercard Press Release, "Mastercard, Lloyds Banking Group, and HSBC Join Forces to Address the UK’s SME Credit Gap" [3] FCA Press Release, "Anna Wallace Appointed as Next Chief Executive of CFIT" [4] Gates Foundation Press Release, "Gates Foundation Announces $3.1m Funding for the Cambridge Centre for Alternative Finance's SupTech Lab"
- CFIT, under the leadership of Anna Wallace, aims to expand its focus on emerging technologies like AI, tokenisation, and digital assets, driving innovation in the UK's business and investing sectors.
- The Centre for Finance, Innovation and Technology (CFIT) continues to foster industry-wide collaborations, including partnerships with government bodies, industry leaders, and organizations like the FCA and Mastercard, to develop practical technology solutions for fintech challenges.
