Chip, the clever app that automatically saves up money for you, has announced that it has been approved by the Financial Conduct Authority (FCA) as an Authorised Payment Institution.
The authorisation marks a major milestone for Chip, with the next step being an introduction of FSCS protected savings accounts through partner banks.
The news also follows a roll-out of a number of features in response to a large influx of savers using the app to automatically put away safety net funds. In order to make the app experience smoother, smarter and better suited to the current circumstances, Chip has introduced new features and made the following commitments:
• Changes to the manual save limits - users can now make a manual save every day, as many days a month as they like, up to the amount of £10,000.
• Open Banking update - not only does Chip now connect to 18 UK banks, but the update also makes the connection much easier and quicker.
• AI adjustment - thanks to the new Open Banking update, Chip can build on and enhance the machine learning behind auto-saves, so the app can learn from the users’ spending habits and intelligently adjust their automatic saves. If a user skips or adjusts saves, Chip will learn from that and tailor future saves, meaning that the longer you use Chip, the smarter it becomes.
• Uninterrupted service commitment - Chip has contingency plans to keep operating no matter what happens in the coming months.
Chip’s Chief Executive Officer, Simon Rabin, commented: “The FCA authorisation unlocks a wealth of opportunities for Chip. Over the last few days, we have had a spike in saver numbers as well as savers putting money aside for safety net funds. Now more than ever, we need to be agile and innovative in order to meet this demand - and this will enable us to do exactly that.”
“Millions of people in the UK have less than £100 saved up, which leaves them exposed to financial shocks”, Simon continued. “We’ve found that the average Chip saver can put aside around £1,800 a year, without noticing it, which can be a very useful amount of money if you find yourself in a pinch. Thanks to the new features as well as becoming an Authorised Payment Institution, Chip will become an even better and smarter tool for putting money aside - for the serious stuff in life as well as the fun.”
Gerard Hurley, Chief Compliance Officer at Chip, added: “Becoming authorised by the FCA is a massive success for Chip. We had to go through a gruelling application process, but now this means that our customers and partners have even more trust in us. It also means that we can quickly release new products, which is incredibly beneficial as we have a very busy product pipeline ahead. Along with the introduction of new features, we’re entering a new era at Chip, and I’m very excited to see how we can help even more savers make it happen.”