Chip, an AI-powered automatic savings account mobile app, has successfully secured its initial £600,000 funding target through its equity crowdfunding campaign on Crowdcube. The initiative was launched just a couple days ago and has already attracted more than 2050 investors.
Chip is described as a savings app that is designed to help users save money and feel good about it. It’s an automatic savings app which does all the hard work to make saving money as easy as spending it. Since launch earlier this year, Chip has processed £6.7m, analyzed over 10 million transactions and had 25,000 people open an account. It is aiming to become a challenger bank for savings:
“The average UK adult saves 1.7% of their income, whilst spending 3.7% on debt interest payments. We’ve built an intelligent savings account that helps you save more of your money and spend less of it on overdraft and credit card fees. Chip’s proprietary AI connects to your current account and analyses transactions. Then every few days, calculates what you can afford to save based on recent spending. Saves are automatically transferred to Chip where they are put towards goals, withdrawn, or used to reduce borrowing. In just 10 months we’ve processed £6.7m of savings, had 25,000 people open accounts with Chip, analysed approximately 10 million transactions, have £2.4m on deposit and approximately £40m of consumer credit to optimise.”
The company also reported:
“2018 will see Chip launch it’s plugin overdraft feature, empowering consumers with their own data to reduce borrowing costs and maximise their savings. By the end of 2020, Chip plans to have 500k active savers, £500m saved and over £1.4bn of borrowing reduced to the lowest possible cost.”
All funds from the Crowdcube campaign will be used to continue Chip’s app development and expansion. The funding round is currently set to close at the end of December.
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