ClearBank enhances financial protection for Chip customers

ClearBank, the cloud-based clearing bank, today announced it has 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.

“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,” said Simon Rabin, CEO of Chip. “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.”

“Fintech is no longer in its infancy—the market is maturing quickly, as are the banking requirements of fintech businesses. And as banking requirements change, so does the way they need to be delivered,” said Charles McManus, CEO of ClearBank. “We are entering the era of Embedded Banking, where pioneering firms like Chip want to integrate innovative banking services without the cost and complexity of becoming a bank. Chip is ClearBank’s first consumer facing BaaS customer and we’re proud to be able to support their growth and ambition with our BaaS platform.”

By connecting to a user’s current account via Open Banking, Chip’s smart AI platform builds savings for its 400,000 users automatically, based on their spending habits and income - with over £600 million saved to date. Chip is growing rapidly. 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.