UK-based savings and investment platform Chip has selected banking-as-a-service (BaaS) provider ClearBank to add Financial Services Compensation Scheme (FSCS) protection to its savings accounts.
The arrangement will cover Chip savings accounts with FSCS coverage on deposits up to £85,000. The accounts will also be connected to Faster Payments to enable real-time withdrawals.
The FSCS protection ensures that the customers will be compensated up to the amount, in case the financial institution fails.
According to Chip, the move is expected to help the platform in building consumer trust.
Chip CEO Simon Rabin said: “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.
“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.”
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By GlobalDataClearBank CEO Charles McManus said: “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.”
