Lloyds Banking Group has won a contract to provide banking services for over 30 UK governments and public sector bodies.

The deal involves processing a range of different payments on behalf of Government Banking, who provide a shared banking service across central government and wider public sector customers.

Following a competitive tender, the bank will supply services to the Department for Transport, Driver and Vehicle Licensing Agency, HM Revenue & Customs and the Ministry of Housing, and local government.

Lloyds said the contract is for eight years, with an option to extend up to a further four years.
The commencement of banking services by Lloyds will take place through a phased approach from 2025.

Lloyds said it will focus on providing a smooth transition and ensure organisations’ payment services continue to operate as normal.

The bank added that it has been investing significantly in its cash management and payment systems as part of its digital transformation.

Lloyds said its Gem platform uses cutting-edge technology to handle large numbers of complex transactions with ease, while also providing advanced analytics and self-service tools to support clients.

“We are delighted to have won this prestigious contract,” said John Winter, chief executive of corporate & institutional banking at Lloyds Banking Group. “We know that providing banking services for multiple government departments comes with great responsibility.”

Winter continued: “Our investment in technology has enabled us to deliver new and innovative solutions for our clients, and reinforces our commitment to helping Britain prosper now and for the future.”

Earlier this week, Lloyds announced it has added a new feature to its app which allows customers to deposit cash at over 30,000 payment locations.

Through the app, users generate a barcode which is scanned at a PayPoint location.

The barcode is valid for two hours after activation in the app.

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