Savings app Chip sees record growth under lockdown

By Aisling Finn on Thursday 27 August 2020

Savings and Investment

In just two months, Chip’s assets under management grew by 40 per cent and its user base nearly doubled this year so far.

Savings app Chip sees record growth under lockdown
Image source: Chip

AI-powered savings app Chip says customers put away 103 per cent more money under lockdown, both through its auto-save function and manual deposits. 

According to the fintech, customers put the most money away in Chip’s history in June, with the average customer manually stashing £257.55 away, an increase of 355 per cent compared to June 2019. 

Throughout lockdown, each month saw significant increases, in March customers saved £74.79 on average, in May users saved £114.69 on average and in July the auto-save amount increased by 42 per cent to £106.33. 

As well as auto-saving seeing a significant increase, the average monthly annual deposits saw a 356 per cent increase compared to last year. 

Simon Rabin, CEO of Chip, said: “This year has been without a doubt one of the most turbulent in our lifetimes. The events of 2020 have really highlighted the importance of having a financial buffer and taking control of your finances.” 

“As Chip continues to grow, our focus is on providing more people with the tools for making saving easy, effortless and rewarding. We’re committed to opening up the exclusive world of the traditional savings industry and building the digital app-based future of savings.” 

As a result of its huge growth, Chip actually had to start charging its customers if they saved too much back in June, with the fintech making users pay a small £1 fee if they saved over £100 in a 28-day period.  

At the end of July, Chip also launched an interest savings account for its 250,000-strong customer base with an easy access rate of 0.90 per cent AER and FSCS protection. 

It has also been rumoured that Chip is on the lookout for a Series A funding round that would see it valued at around £100m, as per Business Insider. 

AltFi reached out to Chip for comment on the alleged funding round, but it declined to provide one. 

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