Savings app provider Chip recorded a 222% increase in the total amount put aside by savers in January 2021 compared to the same month in 2020.
Along with increased deposits, Chip also noted a sharp rise in the average user age—41 in January 2021 compared to the average age of 32 as recorded in October last year. In fact, the oldest user to join Chip this January was 93 years old.
These are some of the trends pointing towards the maturity of Chip as a financial product. The company, which saw record growth last year, introduced a number of wealth-building features in 2020, such as Payday Put Away (PDPA), and plans to roll out investments in 2021.
The fintech provider looked at PDPA and analysed the difference in average monthly savings for users who use the feature, allowing them to save a custom amount of money the day they’re paid, versus those who do not
Chip found that those who use PDPA end up saving 114% (or £168.47) more per month on average, which can amount to an extra £2,021.64 per year.
The financial priorities of users also reflect this trend, with savers putting money aside for longer-term, bigger financial goals. The top goals set up by Chip savers so far this year include a financial safety net, house and car deposits, clearing debt, and weddings.
Simon Rabin, founder and chief executive officer at Chip, comments: “In 2020, we not only saw a surge in user growth and a sharp increase in the amounts put aside, but we also noticed a shift in customer priorities with a greater emphasis on financial security and bigger, longer-term goals.”
“This year, we are seeing the trend continue on the same trajectory. January is notorious for being ‘the’ month for financial planning, and it’s definitely the case this year, with it being our biggest January on record.”
He adds: “As a product, Chip has matured immensely and it’s reflected in how our savers use the app—from the sharp increase in the overall amount put aside, to user goals and priorities. One thing that hasn’t changed, however, is our goal—it was and still is to enable our savers to grow their wealth.”