The group said the new facility, which forms part of an investment programme worth £3 billion overall, would help "transform the digital experience" for Bank of Scotland, Lloyds Bank, Halifax and Scottish Widows customers.
Lloyds added that the new hub would boost Scotland’s tech scene with as many as 500 new software engineering roles in the capital, as part of a wider drive to promote technology careers in financial services.
Philip Grant, chair 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."
Derek Mackay, Finance and Economy Secretary, added: "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."
Like many of its peers, the lender has been cutting down the size of its traditional branch network and cutting jobs as an increasing number of customers choose to bank online.