Yoti and Lloyds Banking Group Partner on a Reusable Digital Identity
Lloyds Banking Group is supporting Yoti in developing a reusable digital identity solution.
The support includes a £10 million (about $12 million) investment in the United Kingdom-based digital identity company. The new product is scheduled to be launched later this year, Yoti said in a Thursday (March 9) press release.
Aimed at preventing identity fraud, a reusable digital identity enables individuals to verify their identity once, sharing only the details they need and then providing their verified details in seconds without showing their identification documents again, according to the release.
“The combination of their expertise in financial services and our digital identity solutions will bring security to even more businesses, people and communities,” Yoti CEO Robin Tombs said in the release. “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.”
PYMNTS research has found that retail banking customers are demanding more secure and user-friendly online identity verification as authentication technologies evolve and consumer awareness of security measures grows.
Thirty-six percent of consumers want their financial institutions to provide more visible security measures for high-risk financial activities, and 27% want them to provide more visible security measures for everyday digital activities, according to “Visible and Invisible Security: Perceptions in Digital Banking,” a PYMNTS and Entersekt collaboration.
The reusable digital identity solution that Yoti is now developing will join the other digital identity solutions that the firm already offers to help consumers and businesses stay safe online, avoid identity fraud and better control their data, according to the press release.
The investment in Yoti is Lloyds Banking Group’s second investment of 2023, following the £4 million (about $5 million) investment in the U.K.-based “all-in-one” car management app Caura announced in January.
“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 U.K.’s financial ecosystem and is a crucial part of how we help Britain prosper,” Lloyds Banking Group FinTech Investment Director Kirsty Rutter said in the release.