UK savings app Chip plans Series A on back of 2020 growth
UK savings fintech Chip is planning to a Series A funding round valuing it at around $130 million.
According to Business Insider sources, the fintech expects a cash injection in the tens of millions. The firm has raised £14.6 million across six funding rounds. Its last round saw it nab £2.6 million in April.
Chip offers an automatic savings app which it claims uses AI and open banking technology to calculate how much users can afford to put away.
The app transfers funds from a customer’s current account to their Chip savings account every few days.
Chip received Authorised Payment Institution status from the Financial Conduct Authority (FCA) in March.
It rolled out a bevy of services in response to the coronavirus pandemic. These included a change to manual saving limits, an open banking update, and an AI adjustment.
According to the fintech, it saw its highest savings rates in June. Users saved an average of £214 using its app, a 138% growth compared to 2019.
“The events of 2020 have really highlighted the importance of having a financial buffer and taking control of your finances,” says Simon Rabin, Chip CEO.
“Our assets under management grew 40% in just two months […] and our user base nearly doubled this year.”