Chip adds FSCS protection to savings accounts with ClearBank
By Joy Dumasia
- Bank as a service
ClearBank, the cloud-based clearing bank, announced that it had been selected by Chip, the digital savings account, to enhance its market-leading savings and investment platform. Thanks to ClearBank’s Bank as a Service (BaaS) proposal, smart savings accounts are now covered by the Financial Services Compensation Scheme (FSCS) for deposits up to Â£ 85,000 and connected to Faster Payments for real-time withdrawals.
FSCS protection is key to boosting consumer confidence, with government research showing 81% of consumers are more confident in their financial decisions knowing their money is protected by FSCS. By offering each of their customers an individual Chip savings account protected by FSCS and funded by ClearBank, Chip users can be assured that their savings are receiving the highest levels of safety and security.
Chip grows rapidly. By connecting to a user’s current account through Open Banking, Chip’s artificial intelligence platform automatically generates savings for its 400,000 users based on their spending habits and income, with more than 600 million sterling saved to date. And to ensure sustainable growth, Chip is introducing new offerings, including moving from e-money accounts to full-fledged bank accounts offering better financial protection to its customers and working with new partners, including BlackRock, to democratize the business. ‘investment.
Simon Rabin, CEO of Chip, said: âAs we continue our mission to create the world’s best savings app, we needed a banking partner to enhance our offering with better security, a seamless customer experience and a springboard for our expansion in the rest of Europe. We found this and more in ClearBank. As we have evolved, ClearBank has been with us every step of the way, ensuring that our savings account is the last that consumers will need. “
Recently, IBS Intelligence reported that Chip, the digital savings account, raised a total of Â£ 11.5million from 12,954 investors, making it the largest equity crowdfunding of the year and the largest crowdcube equity fund of all time.
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