UK fintech startup Chip, which offers an app that automatically puts money into savings, has raised £2.5 million in a crowdfunding campaign on Crowdcube, from a total of 4,240 investors. The private round targeted £1 million and exceeded that “within hours,” says the London-based company, which just raised £7.3 million last November.
The app, which can be downloaded for free, uses AI to decide how much to save, sends users a notification about the amount to be put aside (with an option to cancel), and then automatically transfers the savings to a Chip account.
Since that last funding round, in the first three months of 2020, Chip’s user base has increased over 40 percent. In March the startup received full authorisation by the Financial Conduct Authority (FCA), which allows it to launch FSCS interest-bearing accounts, made possible through an unnamed partner bank.
“Following on from the FCA authorisation, our next big milestone will be the launch of an FSCS protected savings account, giving our users an even more efficient tool to save up for their goals – whatever they might be,” says Simon Rabin, the fintech startup’s CEO.
Users’ reported goals have shifted since the coronavirus pandemic began, says the company. “Safety net fund” has knocked off “holiday” to become the most popular saving goal in the app, as average monthly savings increase by 13 percent. In a press release, Chip said part of the new funding will help develop new features to accommodate such changing behaviours.
Photo: CEO Simon Rabin