Digital savings platform Chip adds FSCS protection with ClearBank partnership

UK-based digital savings account provider Chip has selected ClearBank’s Banking-as-a-Service (BaaS) solution as it looks to enhance its savings and investments platform.

Chip CEO Simon Rabin

ClearBank’s BaaS offering will provide Chip’s savings accounts with Financial Services Compensation Scheme (FSCS) protection on deposits up to £85,000. It will also give users the ability to deposit and withdraw funds in real time.

The level of trust such accreditation affords is invaluable to customers, Chip says.

The digital saver quotes government research that shows 81% of consumers are more confident in their financial decisions knowing their money is FSCS protected.

Chip CEO Simon Rabin says as a banking partner, ClearBank offered the requisite security the fintech needed, “and provides a springboard for our expansion into the rest of Europe”.

ClearBank CEO Charles McManus adds: “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.”

“We are entering the era of embedded banking, where firms like Chip want to integrate innovative banking services without the cost and complexity of becoming a bank.”

Last year, Chip broke crowdfunding records by raising £10 million in 48 hours via the UK government’s Future Fund, gathering 6,420 investors in the process.

The company claims it has helped users save over £600 million to date.