UK-based Lloyds Banking Group has invested £10 million in digital identity company Yoti, as it prepares to develop a reusable digital identity proposition that will tackle the growing risks of identity fraud.
The investment from Lloyds will fund the development of the new solution by Yoti, which is due to launch later this year.
Yoti already offers a range of digital identity solutions, including a free Digital ID app, which enables individuals to prove their identity from their phone instantly, without the need to show ID documents or share an “excessive amount” of personal data.
The app is available in English, Spanish, French, German, Portuguese and Polish, and has been downloaded by 13 million people globally.
Robin Tombs, chief executive officer of Yoti, called the investment from Lloyds “significant”.
“The combination of their expertise in financial services and our digital identity solutions will bring security to even more businesses, people and communities,” Tombs added.
“We will make it easier and safer for individuals to prove who they are and enable businesses to have more trust and confidence in the identity of their customers.”
Kirsty Rutter, fintech investment director at Lloyds Banking Group, said: “We are thrilled to be supporting Yoti and their experienced, passionate team with their work to further protect people online, through developing and growing digital identity solutions.
“We know how important fintechs and technology partners are for delivering better outcomes for our customers and this investment represents another step forward in our plans to strengthen the UK’s financial ecosystem and is a crucial part of how we help Britain prosper.”
Lloyds Banking Group’s recently-formed fintech investment team is focused on identifying opportunities for investment into fintech at seed to Series B.
In January, the team made its third fintech investment and its first of 2023, committing £4 million to Caura, a car payments management app.
Last year, the banking group released an ‘Innovation Sandbox’, with support from NayaOne, to boost its collaboration efforts with fintechs.