The bank has started recruiting software engineers and data scientists for the hub, which will be based at its Scottish Widows' headquarters.
Edinburgh is fast becoming one of the UK's most competitive tech hubs...Derek Mackay MSP , Economy Secretary , The Scottish Government
LBG said it was responding to a shift in customer behaviour towards digital services. The hub will be used to develop new technology for Bank of Scotland, Lloyds Bank, Halifax and Scottish Widows customers.
The move is part of a £3bn investment announced by Lloyds last year to overhaul its digital services.
Philip Grant, chairman of LBG's Scottish executive committee, said: "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..."