Digital company ID could save UK financial sector £1.7B: CFIT

A UK initiative to create a reusable digital identity credential for businesses could save financial institutions £1.7 billion (US$2.2 billion) by reducing the cost and complexity of Know Your Business (KYB) checks and onboarding.

The government-backed industry body has completed a Proof of Concept for a Digital Company ID, a reusable digital credential that allows verified business information to be shared across institutions.

The effort is supported by identity providers Yoti and OneID, which have helped develop and test the concept alongside banks, fintechs and industry participants.

The initiative reflects a broader shift toward reusable organizational identity, allowing verified business information to be shared across institutions rather than repeatedly collected and verified during each onboarding process.

“Through the digital company ID, [we developed] a trust and governance framework that was acceptable to both banks and the orchestration players that we could then hand to [the] government,” Anna Wallace, CFIT chief executive and former FCA executive, told The Banker.

At a recent CFIT roundtable, banks identified account opening as one of the highest-risk areas to pilot. On the demand side, roughly 80 percent of businesses surveyed by the organization said they would pay to use a digital company ID. The commercial structure, however, is still being worked out.

“In terms of the commercial model, who pays and how it will be delivered is the big question and how we can support it to get to scale,” says Wallace. She added that she anticipates “a big shift” on digital ID over the next 12 months, with major players considering deploying the capability.

CFIT describes itself as a “neutral convener” focused on removing bottlenecks in financial services. Banks and industry participants have brought at least 25 projects to the organization, spanning smart data, AI and financial infrastructure modernization.

A minimum viable product is expected to enter the FCA regulatory sandbox, where banks, identity providers and fintech partners will test whether reusable digital company credentials can reduce onboarding friction while maintaining compliance and trust. If successful, the initiative could become a foundation for broader organizational identity infrastructure across the UK financial sector.

Article Topics

Centre for Finance Innovation and Technology (CFIT)  |  digital company ID  |  financial services  |  KYB  |  reusable digital ID  |  UK digital ID