Chip Automatic Saving

Money, investing, mutuals etc
William Joseph1
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Re: Chip Automatic Saving

Post by William Joseph1 » Tue Nov 20, 2018 2:53 pm

RonFlorabud wrote:
William Joseph1 wrote:
RonFlorabud wrote:You said that already.
Another example of your spamming with duplicate 5hit
And your rude comments and constant bickering are not another form of spam?
Haha, you'd know all about that.
I was expecting such a riposte. For your information it was a question and not a statement.
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Re: Chip Automatic Saving

Post by axelandpixel » Tue Nov 20, 2018 6:55 pm

planteria wrote:is anyone here saving with Chip?
I don't use it but I've seen it on a crowdfunding platform as I invest in startup companies. It's similar to Plum and is raising £1m but has now reached £3.6m with almost 6k investors. I haven't seen any complaints about it on the discussion so it's pretty much legit.

Here's a bit of their intro on their pitch:

"Since launch Chip has grown rapidly to 75,000 users, processed over £58m of saves, has £36m of deposits & is connected to accounts with £130m of outstanding debt."

"From January 2019 ChipX offers returns of up to 8% powering Chip's community lending. OpenBanking and Chip's AI algorithms empower consumers to earn better returns by eliminating the bank's margins."

"Funding is required to onboard the waiting list & roll out all new features including instant saves, transaction roundups, FSCS protection, base interest of 1.5%, smart goals, squad goals, save matches and the best returns possible with ChipX."

planteria
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Re: Chip Automatic Saving

Post by planteria » Wed Nov 21, 2018 9:00 am

Boro Boy wrote:Yes, I saw this; what a statement: "You can save even when you're overdrawn, making it easier to build up savings and use them to pay off your overdraft all in one go."

How does that work...!?! :think:
it Is a bit of a classic Boro Boy. i suppose it's a feature that Could be used to advantage, by some.. but it all depends upon what rates are involved. fwiw i have a couple of 0%od facilities, but i very rarely use them.

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Re: Chip Automatic Saving

Post by planteria » Wed Nov 21, 2018 9:13 am

and..
axelandpixel wrote:"Since launch Chip has grown rapidly to 75,000 users, processed over £58m of saves, has £36m of deposits & is connected to accounts with £130m of outstanding debt."

..is that a direct quote? doesn't make complete sense to me.. does it mean 'We have processed over £58m of Savings for customers, £36m of which we currently have on deposit' and 'we have customers who have £130m of outstanding debt - therefore we have easy access to further demand for our money' ??

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Re: Chip Automatic Saving

Post by axelandpixel » Wed Nov 21, 2018 3:16 pm

planteria wrote:

..is that a direct quote? doesn't make complete sense to me.. does it mean 'We have processed over £58m of Savings for customers, £36m of which we currently have on deposit' and 'we have customers who have £130m of outstanding debt - therefore we have easy access to further demand for our money' ??
I'm not sure what they mean with their last line but before that paragraph, here's they what say:

"Chip connects to your current account, saves automatically, provides the best possible returns and can reduce the cost of borrowing."

So I guess because they're connected to accounts with outstanding debt, their product can work on helping them to reduce the cost.

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Re: Chip Automatic Saving

Post by planteria » Wed Nov 21, 2018 4:25 pm

that still doesn't make sense to me :geek:.

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Re: Chip Automatic Saving

Post by parchedpeas » Wed Nov 21, 2018 5:16 pm

The mid-term plan for them is to link to people's current accounts and then, when people go overdrawn, they will use the other funds 'on loan' from people in credit to stop people going O/D.

Suppose the app will pop up with a message saying "You're about to go overdrawn at Lloyds / Halifax etc. Either pay the £5 a day fee, or borrow £xx today at x% and don't get hit with the fees"

Then the Chip users in credit will get a return on their savings raked off the back of that.
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Re: Chip Automatic Saving

Post by planteria » Thu Nov 22, 2018 1:38 pm

i see. ok. interesting concept.

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Re: Chip Automatic Saving

Post by AAAlphaThunder » Fri Nov 23, 2018 1:41 pm

Certainly a "unique" idea.
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Re: Chip Automatic Saving

Post by Constantine » Fri Nov 23, 2018 4:24 pm

parchedpeas wrote:The mid-term plan for them is to link to people's current accounts and then, when people go overdrawn, they will use the other funds 'on loan' from people in credit to stop people going O/D.

Suppose the app will pop up with a message saying "You're about to go overdrawn at Lloyds / Halifax etc. Either pay the £5 a day fee, or borrow £xx today at x% and don't get hit with the fees"

Then the Chip users in credit will get a return on their savings raked off the back of that.
That might be the plan, but Chip currently cannot use the money from people in credit to fund loans to those who are overdrawn. It does not have a banking licence. It can only lend its own money, and as at 30 April 2018 it only had £330,991, which is fuck all really. And as it happens, Chip is very limited as to what it can do, as in they don't have FCA permission to do anything at all, they are merely an agent for Prepaid Financial Services Ltd, who presumably do all the processing. Chip only had 3 employees in FY 2018.

See;
https://register.fca.org.uk/ShPo_FirmDe ... 047TqmEQAS

So when they say "we have customers who have £130m of outstanding debt - therefore we have easy access to further demand for our money" they are doing nothing more than signalling the potential for future lending to these customers. As in the 'ChipX community lending' due to launch in January 2019. From looking at the summary of their crowdfunding pitch it looks as if they have all sorts of ideas as to what they want to do including getting 'FSCS protection', but I haven't read the actual documents to get a real understanding.

But it seems to me to be a very niche service, targeted at dumb millennials who are too stupid to realise that you can open a Tesco Bank account and get 3% on your money, without any mucking about with referrals. Their might be enough dumb millennials around to build a business. I don't really know. It's only one of a number of app based fintech companies who are supposedly challenging the status quo. My best guess would be that most of them will fail, and flog their customer base to somebody else.

Some of us remember Interweb Mk1, and how Egg Banking was going to sweep all before it. :)

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