There’s been a lot of questions recently around our new Monzo/Starling/Revolut/N26 integration, why these new challenger banks only connect to Chip via your bank card, and what this means for your saves.
Currently, you connect Chip to Monzo, Starling, Revolut & N26 using just your bank card, which means we don’t have access to your transaction data.
Instead, we use average data from all Chip savers (we’ve analysed well over 180 million transactions). We cross reference this data against your profile (age, your bank, where you live, etc…), to calculate how much you should put aside.
We hope you won’t even notice the difference. We think it’s a pretty smart algorithm!
Of course, this means that the automatic saves are not personalised using your data, and this is still something we’re working towards. Also, importantly, whilst we’re pretty confident Chip won’t take you into your overdraft, we can’t guarantee it like we do when we have a full bank connection. However you will have time to cancel any saves before the money leaves your bank account.
So, why have we only released card saves for these new banks, and not full bank connections?
The fact is, integrating these challenger banks requires onboarding a new service provider, which in turn means a long-winded regulatory / compliance sign-off process. This is because there’s a bit of uncertainty around open banking and re-authentication of your account.
We thought that it would be much better to release card saving now, rather than keep you waiting for even longer until bank connections are ready. Also, in the case of Revolut which is only a card and not an account, we wanted a way for their users to be able to use Chip.
As mentioned, we are working on those bank connections, but we do need you to be patient for a little longer. Until then, give the card saving a try!
If you’ve got any other questions or want some more clarity into any of these points, ask away!