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New research from the Centre for Finance, Innovation and Technology (CFIT) has revealed overwhelming demand among small and medium-sized enterprises for a Digital Company ID, with 85 per cent of firms saying they would pay for such a service.
The findings highlight both the commercial opportunity for providers and the strategic importance of digital identity infrastructure in strengthening the UK’s business environment.
Digital Company ID
Strong appetite for Digital Company ID
The survey, carried out by Opinium among 1,000 decision-makers at companies with fewer than 250 staff, underscores the appeal of digital identity as a tool for improving efficiency, reducing fraud risk and widening access to credit.
Larger SMEs were found to be especially receptive to the idea, reflecting the greater administrative burdens they face and the potential scale of savings.
For businesses, the most valuable benefits were identified as enhanced fraud detection, simplified regulatory compliance and easier customer or account onboarding.
Half of respondents said a Digital Company ID would support more secure payments and reduce exposure to scams.
Meanwhile, 59 per cent pointed to time savings in completing tax returns, filing accounts or applying for regulatory licences. Nearly two-thirds believed such a system could lower the costs associated with opening a bank account.
These results arrive against a backdrop of rapid expansion in the UK’s digital identity sector.
According to the Office for Digital Identities and Attributes, more than 250 firms now operate in the space, three-quarters of them UK-headquartered.
Collectively, they employ over 10,000 people and generate more than £2bn in annual revenues, growing at 12 per cent year-on-year.
SMEs’ willingness to pay for identity services suggests a strong tailwind for further market growth.
Rob Haslingden, Head of Impact Assessment and Engagement at CFIT, said the findings show clear alignment between SME needs and industry ambitions.
“If we can deliver a Digital Company ID product that improves efficiency, security and trust, we will be pushing at an open door,” he commented.
He added that the increasing comfort of consumers with personal digital IDs, supported by the Data (Use & Access) Act and the launch of the GOV.UK Wallet, would further boost adoption.
Fraud Prevention
The fraud prevention angle is particularly compelling.
CFIT’s earlier blueprint identified Digital Company ID as a tool to help mitigate the £6.8bn annual cost of economic crime in the UK, through secure data-sharing that disrupts fraud networks.
For this to be effective, however, a critical mass of businesses must participate—making SME uptake central to success.
CFIT has now convened industry-led working groups to develop a prototype, establish governance standards and explore additional use cases.
Their recommendations, due in December, could mark a decisive step towards embedding Digital Company ID into the UK’s financial and regulatory infrastructure.
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