Lloyds Banking Group plans to create 500 high-skilled jobs at a new digital tech hub in Edinburgh.

The bank has begun recruitment of software engineers and data scientists at the hub, based at its Scottish Widows’ headquarters, but will fill some of its new roles with existing upskilled staff.

The hub will be used to develop new technology for Bank of Scotland, Lloyds Bank, Halifax and Scottish Widows customers.

Banking group's digital centre to serve Bank of Scotland, Halifax and Scottish Widows customers.

The move is part of a £3B investment programme which was announced last year and is designed to boost its digital capabilities.

Philip Grant, chairman of LBG's Scottish executive committee, said the group was working to strengthen its tech-based talent pool in Scotland.

"People's expectations are rising rapidly as they want the same experience they're used to with established digital brands,” he 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."

Scotland's Finance Secretary Derek Mackay said he was delighted that the tech hub was bringing new jobs to the area.

"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.

"This commitment sends a strong message that even in these uncertain times, we remain open for business and shows great confidence in Scotland as a centre of excellence for financial services."