Lloyds Banking Group has invested £10 million in Yoti, a digital identity company that uses an app to let people prove who they are, both online and in person.
With Yoti’s Digital ID app, users can create a verified digital ID to prove their identity by taking a biometric selfie and adding a government-issued ID document. Once the digital ID is created there is no need to show ID documents or share an excessive amount of personal data.
According to a statement, the investment from Lloyds Banking Group will support Yoti’s development of a new “reusable digital identity proposition” that is set to launch later this year. The aim is combat the growing risks of identity fraud, although no further details have yet been released.
Kirsty Rutter, FinTech Investment Director at Lloyds Banking Group, said: “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.”
Digital IDs are a UK government-approved form of identification for right to work, right to rent and criminal records checks. Yoti’s Digital ID is also accepted as proof of age at UK cinemas,and for the sale of lottery tickets, energy drinks and tobacco.
The investment in Yoti is Lloyds Banking Group’s second investment of 2022. It is headed up by the Group’s recently formed Fintech Investment team, which focuses on identifying and exploring opportunities for investment into fintech at Seed to Series B.
Robin Tombs, CEO at Yoti added, “The combination of their expertise in financial services and our digital identity solutions will bring security to even more businesses, people and communities. 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.”