According to the bank, the sandbox will enable it to accelerate its collaboration with new fintechs and the development of any products and services that result from the partnerships.

The bank also states that a number of experiments have already been conducted in the sandbox.

The move is in line with research conducted by Lloyds in 2021, that said almost half (46%) of financial services firms plan to work more closely with fintechs.

Karan Jain, CEO of NayaOne, told Finextra, “We are extremely proud to be working with Lloyds Banking Group on their Innovation Sandbox. It is clear this will enable the bank’s growth strategy through technology-led innovation, strengthen the UK financial ecosystem and deliver on the Fintech Delivery Pledge.”

"We are working to maximise the value of the Sandbox and increase the velocity of technology-led innovation in supporting our growth strategy," said Vic Weigler, chief technology officer at Lloyds Banking Group.

Changes were made to this article post-publication to add quotes from NayaOne.