Savings app Chip raises £4m in crowdfunding record
Chip’s latest round of crowdfunding attracted over 7,000 investors, beating the UK’s previous record held by challenger bank Monzo.
In the UK the average adult saves less than 2 per cent of their income and receives less than 1 per cent interest, according to Chip. The app automatically transfers money in to a savings account, the value of which is determined by an AI-powered algorithm.
The algorithm calculates how much the account holder can afford to save each month and transfers it in to the account which offers up to 5 per cent interest.
The raised capital will go towards launching the company’s latest products in 2019, including ChipX.
Competing with the UK’s credit market, ChipX will enable its users to gain a return by lending to other users attempting to reduce their overdrafts.
Alex Latham, Chip CMO, said in the announcement: “We are becoming the challenger bank for savings and the enthusiasm of our savers to invest in the company is a fantastic endorsement.”