Money-saving app Chip secures FCA authorisation

Charlie Spargo's picture

Money-saving app Chip has announced its approval by the Financial Conduct Authority (FCA) as an Authorised Payment Institution, as well as launching a selection of new features.

The app has seen a recent influx of users, leading it to develop a range of new solutions for automatic saving on the platform. There is now the option to make a daily manual save of funds, as many days as a user likes, up to a limit of £10,000. What's more, it's made changes to its AI capabilities thanks to a recent Open Banking update - meaning the app can learn from users’ spending habits and intelligently adjust their automatic saves, including if a user skips or adjusts saves.

Chip automatically saves up money for you, using artificial intelligence to calculate an affordable amount each user can save without impacting their daily spending habits. Its next stated aim is to introduce FSCS protected savings accounts through partner banks.

Chip CEO, Simon Rabin, said: “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. 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.”