UK auto-saving app Chip lands authorisation from FCA
Chip, a UK-based auto-saving app, has just been approved by the Financial Conduct Authority (FCA) as an authorised payment institution, UK Tech reports.
This means the fintech can now introduce savings accounts protected by the Financial Services Compensation Scheme (FSCS) through its partner banks.
“The FCA authorisation unlocks a wealth of opportunities for Chip,” says CEO Simon Rabin.
“Over the last few days, we have had a spike in saver numbers as well as savers putting money aside for safety net funds.
“Millions of people in the UK have less than £100 saved up, which leaves them exposed to financial shocks.”
In response to the influx of savers using its platform amid fears over the impact coronavirus is having on the economy, the UK fintech has rolled out several new feature updates.
These include a change to manual saving limits so users can save up to £10,000 every day, an open banking update which makes it quicker to connect to 18 different UK banks, and an AI adjustment so the app can set automatic saves in accordance with users’ historic activity in the app.
The free service currently connects to banks including Barclays, Danske, HSBC, Lloyds Bank, Monzo, Natwest, Revolut, and Starling.
“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,” says Rabin.
“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,” he adds.