Lloyds plans to sell more customer data to third parties: FT

Lloyds plans to sell more customer data to third parties: FT

Lloyds Banking Group has partnered with open data platform Moneyhub to enhance transaction categorization and personalization across its brands, including Lloyds, Halifax, and Bank of Scotland. The collaboration leverages consumer-permissioned data and Moneyhub's AI-driven categorization engine, which has been refined over a decade with user input, to deliver more accurate transaction insights according to Finovate. Lloyds aims to improve digital banking services by providing customers with deeper spending insights and enabling real-time financial decision-making. The move aligns with the UK's advancing open banking framework, where regulatory support and consumer demand for data portability are driving innovation as reported by Finovate.

While the partnership focuses on data categorization and personalization, it does not explicitly involve the sale of customer data. Instead, Lloyds emphasizes using data with customer consent to enhance service offerings. This initiative complements the bank's broader strategy to expand its corporate and institutional banking business, as outlined in upcoming investor presentations. The bank has also faced scrutiny in the past over data-related issues, including a 2024 incident where customer data was mistakenly shared during union pay negotiations according to the Financial Times.

The partnership underscores Lloyds' commitment to digital transformation, with plans to integrate Moneyhub's technology alongside its in-house generative AI capabilities as detailed by Finovate. As open banking evolves, the bank's approach reflects a balance between innovation and compliance in managing customer data.

Financial Times: Financial Times
Financial Times: Financial Times
Financial Times, Finovate: Financial Times, Finovate