CFIT secures public and private funding to drive UK financial innovation

Source: Seven Hills BPI

The Centre for Finance, Innovation and Technology (CFIT) has announced new funding commitments from both HM Treasury and NatWest Group, marking a significant milestone in the organisation’s evolution and reinforcing its role at the centre of the UK’s financial innovation ecosystem.

Building on CFIT’s achievements over the past five years – and following the culmination of its second and third Coalitions on Corporate Digital Verification and SME Access to Finance in recent weeks – this backing represents a strong vote of confidence from both the public and private sectors in CFIT’s ability to deliver meaningful, system-wide change. HM Treasury has committed £1 million in funding, whilst NatWest Group has confirmed a strategic partnership with further investment.

From foundation to maturity

CFIT was established following the landmark Kalifa Review of UK Fintech in 2021, with an initial £5.5 million of seed funding to support its creation and early operations. Since then, it has developed into an independent and established organisation, focused on tackling the systemic challenges that constrain financial innovation.

Through its Coalition model, CFIT has brought together industry, government and regulators to move beyond discussion and deliver tangible outputs – from policy recommendations and technical frameworks to working prototypes that demonstrate real-world application.

With a strengthened funding base and growing ecosystem of partners following the strategic partnerships reached with Mastercard, HSBC and Lloyds Banking Group in 2025, the agreements will enable CFIT to:

• Launch and deliver new coalitions focused on priority challenges
• Support the adoption and scaling of innovative solutions
• Convene government, regulators and industry to align policy and market delivery
• Explore exciting opportunities – including in AI, Smart Data, digitisation of capital markets and financial inclusion

CFIT chief executive officer, Anna Wallace, said: “These commitments from HM Treasury and NatWest are a powerful endorsement of CFIT’s model and the progress we have made since our establishment. We were created to address the systemic challenges holding back financial innovation – and to do so in a way that delivers real, tangible outcomes.

“The support from both government and industry demonstrates the value of that approach. As we move into this next phase, our focus is on building on that momentum – working with partners across the ecosystem to develop and implement solutions that support growth and improve outcomes for businesses and consumers.”

Government backing to support continued delivery

The new agreement with HM Treasury, announced by Economic secretary to the Treasury, Lucy Rigby, at the Innovate Finance Global Summit in London, will provide transitional funding through to March 2027, supporting delivery of CFIT’s core mission: to drive UK economic growth through financial innovation.

This funding will support the UK’s growth agenda by enabling CFIT to:

• Develop policy, technical and commercial solutions to support adoption
• Deliver new workstreams aligned to the UK’s Financial Services Growth and Competitiveness Strategy
• Support the transition to a fully self-sustaining funding model

Economic secretary to the Treasury, Lucy Rigby, said: “Organisations like CFIT play a key role in turning ambition into action through practical, industry-led solutions.

“This new funding reflects our confidence in CFIT’s model and our commitment to making the UK the best place in the world to start, scale and lead a fintech business. As we open Fintech Week, this is exactly the kind of partnership needed to address challenges, boost growth, and support the UK’s position.”

NatWest partnership to accelerate innovation and scale impact

Alongside this, CFIT has entered into a strategic partnership with NatWest Group, supported by its Open Innovation team, to further accelerate innovation across the financial services ecosystem.

This new partnership aligns CFIT with NatWest’s broader innovation priorities, including:

• The use of data and advanced analytics to improve customer outcomes
• Exploring the potential of AI and emerging technologies
• Supporting fintech collaboration and ecosystem development
• Driving innovation in areas such as financial health, sustainability and embedded finance

David Grunwald, director of Open Innovation, NatWest Group, said: “The pace of technological and societal change is reshaping how customers interact with financial services, and it is critical that we continue to innovate to meet those evolving needs. CFIT plays a unique role in bringing together industry, government and technology leaders to tackle complex challenges and develop practical solutions.

“Through this partnership, we look forward to supporting work that leverages data, new technologies and collaborative models to unlock better outcomes for customers and businesses across the UK.”

Further reading: UK Government unveils payments innovation package to futureproof UK fintech