UK SMEs signal strong demand for digital company ID

More than 8 in 10 UK small and medium-sized enterprises (SMEs) say they would be willing to pay for a Digital Company ID service, according to new research commissioned by the Centre for Finance, Innovation and Technology (CFIT).

The survey, carried out by Opinium among 1,000 business decision-makers, found that 85% of SMEs would pay an annual fee for the service, highlighting strong commercial potential for the UK’s growing digital identity sector. Larger SMEs were the most open to adoption, reflecting the importance of efficiency and compliance at scale.

Respondents identified fraud detection, regulatory compliance and smoother onboarding as the top benefits of a Digital Company ID. Half said it would lead to more secure payments and reduce scams, while nearly 60% believed it would cut time spent on filing accounts, tax returns or license applications. Two-thirds expected cost savings when opening a business bank account.

“Our research shows that we will be pushing at an open door, if we can offer businesses a Digital Company ID product that improves efficiency, security and trust,” said Rob Haslingden, Head of Impact Assessment and Engagement at CFIT.

“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 Wall.”

The research underscores growing opportunities for the UK’s digital identity industry, which now comprises more than 250 firms employing 10,000 people and generating £2 billion in annual revenues. The sector is expanding at 12% annually, according to analysis from the Office for Digital Identities and Attributes.

CFIT has convened three industry-led working groups to accelerate adoption: developing a prototype Digital Company ID, defining governance standards, and exploring new use cases. Findings and recommendations are expected in December.

Digital Company ID is also viewed as a powerful tool against fraud, which costs the UK economy £6.8 billion annually. CFIT’s earlier blueprint report concluded that widespread adoption would enhance data sharing across companies, helping to disrupt fraud networks and close gaps in verification.