Chip adds FSCS protection to savings accounts with ClearBank

By Joy Dumasia

ClearBank, the cloud-based clearing bank, announced it had been selected by Chip, the digital savings account, to enhance its market-leading savings and investments platform. Through ClearBank’s banking-as-a-service (BaaS) proposition, Chip savings accounts are now covered by the Financial Services Compensation Scheme (FSCS) on deposits up to £85,000 and connected to Faster Payments for real-time withdrawals.

FSCS protection is critical to bolstering consumer trust, with Government research showing 81% of consumers are more confident in their financial decisions knowing their money is FSCS protected. By offering each of their customers an individual Chip Savings Account that is FSCS protected and powered by ClearBank, Chip’s users can be assured that their savings have the highest levels of safety and security.

Chip is growing rapidly. By connecting to a user’s current account via Open Banking, Chip’s smart AI platform automatically builds savings for its 400,000 users based on their spending habits and income – with over £600 million saved to date. And to ensure sustainable growth, Chip is introducing new offerings, including moving from electronic money accounts to fully-fledged bank accounts with greater financial protection for its customers and working with new partners, including BlackRock, to democratise investing.

Simon Rabin, CEO of Chip, said: “As we continue on our mission to build the best savings app in the world, we needed a banking partner to improve our offering with better security, a seamless customer experience, and provide a springboard for our expansion into the rest of Europe. We found this and more in ClearBank. As we have evolved, ClearBank has been with us at each step, ensuring that our savings account is the last one consumers will ever need.”

Recently, IBS Intelligence reported that Chip, the digital savings account, has raised a total of £11.5 million from 12,954 investors, making it the biggest equity crowdfunding of the year and the biggest equity crowdfund held on Crowdcube of all time.