Impact
CMRC works with business, government, and financial institutions to generate evidence that informs practice and shapes policy. The Centre’s impact is grounded in rigorous empirical research applied to real-world financial systems, with outputs used to support decision-making in areas including credit risk, business finance, and economic policy.
Financial Innovation and Credit Risk Practice
CMRC collaborates with industry partners to improve credit risk assessment and lending decisions. Recent work with Novuna Consumer Finance examined the application of artificial intelligence in credit scoring.
This research involved working with large-scale consumer credit datasets to replicate existing modelling approaches and develop enhanced AI-based models. The objective was to improve predictive performance in application scoring, supporting more accurate credit decisions and more effective risk management. The work demonstrates how advanced analytical methods can be translated into practical tools within live lending environments.
Equity Finance and UK Economic Policy
A major area of CMRC impact lies in its research on equity finance gaps and business investment.
Research led by Professor Nicholas Wilson has provided detailed empirical evidence on the financing requirements of high-growth firms in the UK. Using firm-level and deal-level data, this work identifies businesses with strong growth potential that do not access external equity, allowing systematic estimation of unmet demand for venture capital and growth finance.
This research has informed UK policy development and has been cited in the Autumn Statement 2023. The analysis identifies a substantial equity finance gap—estimated at approximately £11 billion—and highlights pronounced regional disparities in access to finance, with firms in the North of England and the Midlands significantly less likely to secure equity investment than comparable firms in London.
These findings have contributed to policy discussions on pension reform and institutional investment, aimed at increasing the supply of long-term capital to UK businesses. By improving the allocation of equity finance, such reforms are intended to support innovation, productivity growth, and the development of high-growth sectors including artificial intelligence, clean energy, and financial technology.
More broadly, CMRC’s work demonstrates that equity gaps are not solely driven by firm demand, but reflect structural features of financial markets, including information asymmetries, investor concentration, and the geographic distribution of capital.
Policy Engagement and Advisory Work
CMRC maintains ongoing engagement with government departments and policy institutions, contributing analysis and evidence to support the design and evaluation of financial interventions.
This includes work with HM Treasury and the Department for Business and Trade on business finance policy, modelling, and evaluation. The Centre’s research has also contributed to understanding the performance of government-backed lending schemes and the broader functioning of SME finance markets.
Across these activities, CMRC provides an evidence base for policy decisions relating to business investment, regional development, and financial system effectiveness.