The fintech app Chip is celebrating its fourth birthday after helping people save over £165 million since its inception. Over the years, Chip’s auto-saves have grown by 237%, manual deposits by 412% and the total amount saved by Chip users has increased by 150%.
The fintech originally launched in beta in October 2016 before officially introducing the saving app to the public in February 2017. Since then, Chip has evolved from an app that helps people save their spare cash into a wealth builder, helping users put aside over £165 million along the way.
In those four years – from October 2016 to October 2020 – automatic saves made by Chip’s AI grew 237%, manual deposits grew 412% and the total amount saved by Chip users increased by 150%. In fact, in just a year from 2019 to 2020, the average monthly auto-save amount grew 28% despite the global pandemic – as people became more focused on financial security and stability.
Since the launch of the Goals feature in September 2017, allowing users to set a goal for their savings, a total of 87,767 goals have been created. In the three years that the feature has been live, Chip has helped fund:
- 31,453 holidays
- 28,102 financial safety nets
- 10,598 new homes
- 10,212 Christmases
- 7,879 debt-clearing funds
- 4,990 new cars, including 12 Porsches and 26 Teslas
- 2,337 weddings
- 740 baby funds
- 556 driving lessons
- 291 life-changing surgeries
- 165 engagement rings
- 31 Masters degrees
- 21 IVF treatments
As Chip grew, its audience also matured. The average age of a Chip user has gone up by three years from October 2019 to October 2020, from 29 to 32, respectively. In the process, saver priorities also changed. As they put aside more, savers started saving for bigger, longer-term goals. “Holidays”, the top goal set by Chip users until recently, constitutes 36% of all goals ever created. However, in light of the pandemic and the subsequent focus on financial security, “safety net funds” claimed the number one spot in February, maintaining the top position ever since. It now constitutes 32% of all goals created and is set to become Chip’s top saving goal of all time.
As part of Chip’s evolution into a wealth-building product, the fintech launched a number of new features aimed at helping users maximise their savings and earn market-leading returns automatically. This summer, Chip launched its Interest Accounts platform to overwhelming demand, offering savers access to market-leading returns and technology that can negotiate the rates on savers’ behalf. In April this year, Chip also rolled out Payday Put Away which has so far helped users put aside an additional £4,742,508. The company is now gearing up to expand its roster of returns products, all while continuing to work on the premium offering, ChipX, due to launch next year.
Chip’s Founder and Chief Executive Officer, Simon Rabin, commented: “We started out by automating savings in order to make putting money aside as effortless and simple as possible, and now we’re on track to revolutionise wealth building by making it automatic.
“2020 has been an incredibly big year for us. Not only did we double the user base, triple the team and close our biggest funding round to date, but we also launched features that allow our users to build wealth and save for the longer term. On top of that, we hit a major milestone this spring when we secured our full FCA authorisation and brought access to FSCS-eligible savings accounts into the app, in the form of Interest Accounts. In short, we’ve come very far since our auto-saving chatbot days.
“This isn’t it, of course. We have big plans for the remainder of the year as well as 2021. Next year, we have our sights set on unveiling ChipX and shaking up the investments market, but all I can say on that is watch this space.”