Digital savings account Chip has chosen cloud-based clearing bank ClearBank’s banking-as-a-service (BaaS) proposition to ensure its savings accounts are protected by the Financial Services Compensation Scheme (FSCS).
Chip is ClearBank’s first consumer-facing BaaS customer, ClearBank CEO Charles McManus said.
It will now be able to offer customers an individual Chip savings account that is FSCS protected on deposits up to £85,000 and powered by ClearBank.
Through ClearBank’s BaaS proposition, Chip savings accounts will also be connected to Faster Payments for real-time withdrawals.
“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.
ClearBank said that research by the UK Government has found that 81% of consumers are more confident in their financial decisions knowing their money is FSCS protected.
“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 McManus.
“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’s smart AI platform builds savings for its 400,000 users automatically, based on their spending habits and income, using Open Banking.
Hayley Viner, products lead, UK payments at ClearBank, is taking part in a panel debate on the payments stage at this year’s Open Banking Expo UK in London on 4 November.