LLOYDS Banking Group is to create 500 jobs at a new tech hub in Edinburgh.
The bank said the hub would help transform the "digital experience" for Bank of Scotland, Lloyds Bank, Halifax and Scottish Widows customers.
It is creating 500 new software engineering roles in the Scottish capital, with recruitment taking place over the next 18 months.
The move is part of a £3 billion investment programme announced last year to boost the bank's digital capabilities.
Philip Grant, chairman of Lloyds Banking Group's Scottish Executive Committee, said: "We're working with the industry to strengthen our tech-based talent pool in Scotland, which will not only benefit customers of Lloyds Banking Group, but support the development of technology, skills and talent in the fastest growing digital economy outside London.
"People's expectations are rising rapidly as they want the same experience they're used to with established digital brands.
"In our tech labs, we are designing what customers will need in the future, making products and services that can adapt to their lives and making it easier for them to connect with their finances."
Scotland's Finance Secretary Derek Mackay welcomed the news.
He said: "I am delighted that Lloyds Banking Group is investing in a new tech hub in Scotland's capital city, creating 500 new jobs.
"Edinburgh is fast becoming one of the UK's most competitive tech hubs, with growth in agile start-ups, offerings from its world-leading universities and new digital academies providing greater scale and choice for careers in the industry.
"Lloyds' investment will be a major boost towards growing the workforce of the future in Scotland, helping create a more dynamic and innovative side to its thriving financial sector.
"This commitment sends a strong message that even in these uncertain times, we remain open for business and shows great confidence in Scotland as a centre of excellence for financial services."
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