UK-based Lloyds Banking Group is looking to acquire more fintech companies to bolster its digital offerings.
Speaking to Bloomberg TV, Lloyds CEO Charlie Nunn said the bank, which has agreed to buy wealth platform Embark Group and Cavendish Online, a protection firm, will “definitely continue to look” at future acquisitions.
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The bank is looking for deals to improve its core business, which is developing new digital offerings “in a way no fintech can,” Lloyd’s bank chief said in an interview.
Lloyd’s says its caters to more than 19 million online customers and claims that it is the largest digital bank in the UK.
It has partnered with Swedish fintech Minna Technologies to allow customers to manage their spending on subscriptions via the bank’s app as inflation pressure keeps mounting.
“There is a sub-segment in the UK that are going through a really challenging time,” Nunn said.
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By GlobalData“20% are having to really adapt their spending to make the space for the increase in costs and energy, foods and fuel, but circa 1% cannot make ends meet and that is where we are focused.”
The bank said it also keeping a close watch on developments in the buy-now-pay-later space but has stayed away from the lucrative market.
It has reported a profit before tax of £3.7bn during the six months to June, which is lower than the previous year’s £3.9bn.
Despite the lower earnings and inflation-hit UK economy, the bank has raised its dividend and annual profitability forecast.
