Lloyds Banking Group (LON:LLOY) has struck a deal with a cyber security start-up as it looks to comply with looming antifraud legislation, the Financial Times has reported. The update comes ahead of the bailed-out lender’s interim results due out on July 31.
Lloyds’ share price has been little changed in London this Thursday, having inched 0.14 percent lower to 57.89p as of 09:57 BST. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index having climbed 0.21 percent to 7,546.19 points. The group’s shares have given up more than seven percent of their value over the past year, as compared with about a 0.6-percent fall in the Footsie.
Lloyds strikes cyber security deal
The FT reports that Lloyds has struck a deal with cyber security start-up Callsign to provide digital identification and authentication of online payments, as required by an EU directive that takes effect on September 19. The Second Payment Services Directive will require most online payments above €30 to go through an extra level of verification such as entering a code received via a text message.
“Our solution will enable the bank to go even further in maintaining a premium customer experience when it comes to identification, traditionally a challenging thing to achieve,” Zia Hayat, chief executive and founder of Callsign, commented, as quoted by the newspaper.
Analysts on bailed-out lender
HSBC, which rates the bailed-out bank as ‘neutral,’ set a target of 58p on the Lloyds share price this week, while last week, Royal Bank of Canada, which is bullish on the group with a ‘buy’ rating, set a valuation of 75p. According to MarketBeat, Lloyds currently has a consensus ‘buy’ rating and an average price target of 70.69p.
Jefferies recently reaffirmed the FTSE 100 lender as a ‘buy’ as a survey by the broker has revealed that mortgage pricing remains relatively stable, with Lloyds offering the lowest rates.