Chip Investor Event Update

So the investor event level 39 Canarywharf was a great setting and was super excited but left a bit deflated with a bit more to be desired.

The Q&A was quite short but appreciate the timings had to be kept with the guest speakers coming into speak.

Met the Man himself and had the chance for a couple of questions but he was a bit more distracted and focussed on his angel investor than a small investor like myself (might I add we small investors make up a large part of your investor pool for your crowdfunding campaigns)

Anyways but as an investor as user as a millennial saver I did feel a bit more to be desired when I asked some of my questions reposting here based on my conversation

  1. Is Chip making money now/ if not when are we expected to break even ?

Did not get a straight answer so I presume Chip is not making money now as the main revenue stream is expected of targeting the existing user base and convert all of them (hopefully … as the target is to get 500,00 users signed up for Chip by largely just via the existing users bringing in more users and limited or no marketing or TV ads) in to active ChipX users at £3.49/monthly fee.

No update on how many ChipX users does ChIP need to break even on an annual basis. (Note this does create the risk of Chip burning through their investment and go back to the market for additional funding which also dilutes the value of the shares from the crowdcube campaign.)

I also then requested clarification if the products offered in ChipX will beat the market products offered by the highstreet bank and the answer was again vague so at a premium of £3.49 the ChipX products offered are not really guaranteed to be market beating it’s almost a similar approach like moneybox/plum/Wealthsimple that offer putting a portion of your savings away by investing in different funds and share and bonds for X returns with a decent education of how risk of each investment.

While there is no plan in ChipX to risk educate how these financial products are selected by Chip and what risk they carry besides a statement in fine print drafted by their CTO that everyone was proud off. I did mention if Chip can assign a Chip risk category to each financial product within ChipX it would be helpful.

I did also challenge if Chip whole revenue model is only ChipX what is the USP other than ease of use of the app and what is stopping a highstreet bank like HSBC / santander to incorporate something similar on their app - no clear response . Did highlight to the Big Man behind Chip that not exact similar but speaking on the ChipX fee if a Chip user that they will make up their ChipX monthly fee not many users may convert to ChipX users gave the example of a santander 123 account for a £5 monthly fee guarantees you 1% & 2% and 3% returns with no risk and it’s a saver cum current account for me personally and I easily make back my fee I pay to santander not a like for like comparison but it was around the fee and the reward of return …however the Big man of chip And his angel investor insisted the ease Of the Chip platform people will pay for the premium monthly fee(Time will tell and I hope for all of us i am wrong and hope this model is sustainable) Chip on the other hand need to really ensure that ChipX is tempting and rewarding to convert existing chip users to ChipX users or it will be a disaster as when Monzo launches their premium accounts and the shut them down.

The basic Chip saver again with the brilliant AI to assess how much money is saved on a weekly basis is a USP but it would be more brilliant if we are awarded an interest on the savings instead of the referral scheme (now withdrawn but maybe back again in the future)as the sole way of earning something more on your Chip saving is ChipX but it comes with a high risk /reward which is not guaranteed as any financial product investment.


I was unable to make the event but I have been asking similar questions for a year without proper response. For example and maybe you can help

  1. How will Chip X work for a consumer wanting to borrow money? What rate of return will they pay? How long will they borrow for? If rates of return for investors are up to 8% for they’re to be a profit margin it must be higher than that.

  2. Was there any concrete plans announced of when chip X will launch, FSCS protected accounts and any other updates? My concern has been that chip leadership never meet deadlines and without a plan they cannot be held to account.

  3. Was there any mention of the bugs and issues that have been identified by customers and when they will fix these?

Looking forward to any clarity you can provide

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No update they only mentioned they are working towards the FCSS approval that’s all no timeline but they believe they have achieved good progress.

ChipX launch the investor will get their codes over the next few weeks and then the official big rollout is next year if I remember correctly.

Yes they did mention some of the bugs surrounding signing up to the account etc but nothing major.

I didn’t attend the event but my concern as an investor is that ChipX has been a long time coming (all of 2019?) and they operate in such a competitive space that they need to get on with it! I feel this is far more important than developing a Dark mode for the app (just because others are). I’d like Chip to deliver on their USP - an innovative, leading savings app. Before others catch up! Chip need to gain a critical mass size or they are potentially irrelevant next to Monzo, Revolut, N26 who can just launch savings in their apps.
Leverage all the crowd investors who love Chip and deliver the best savings app.


Hi all, I’m going to put together a Q&A with Simon and some of the management team for an evening in December. As soon as I have the date confirmed, I’ll let you know and you’ll be able to put your questions to the team directly.

We’ll also have an update email going out just ahead of that Q&A too. :slight_smile:

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Any idea when the video of the investor meet-up will be available?

We’re working on it, but not until next week at the earliest.

It may also not be the full event unedited, due to technical limitations, hence running the video Q&A as well. :slight_smile:

@sarahchip it would be great to see on the forum or elsewhere a justification for introducing the £3.50 monthly ChipX fee. Really struggling to see how this stacks up against competitors e.g. Oval (free) and Plum (£1). Currently I don’t feel I would pay it - interested to hear others’ thoughts?

My thoughts: if you feel its worthwhile from your perspective, pay it. If you feel its not worthwhile from your perspective, don’t pay it.


I was in the audience and I also asked a few questions.

To be fair to Simon, he did answer your question. He admitted that Chip at its current format is in fact NOT making money. He stated that for every user that joins chip it costs them around (I might have this figure wrong) £15 on transaction fees.

But he agreed that they’ve over the last 12 months due to tactical improvements, they have managed to reduce this to around £12 and they were aiming for it to be even less by February.

He said that most apps in fintech are all in this same position and it costs them money in fees to handle other peoples money. And in comparison, they are gaining momentum in reducing the cost of gaining users quicker and better than competitors (plum etc)

So your questions about whether or not chip is making money was answered, they are burning a hole in their pocket. However, I agree with Simon here, if he knows this is their biggest problem and has a plan to attack it. I’m with him!
If he gets the fees small enough, or even cost neutral… then adds a revenue stream such as ChipX… boom. The money rolls in as an unstoppable force. And at that point it’ll become an equation a bit like Richard Branson. “How much money does Chip make every minute?”

My question to Simon in the audience though was about the Smart Credit website.

I pointed out that there was clearly two different audiences here. The student debt, I’m skint every Monday morning crowd… and the disposable income crowd. One needing a little help, and the other willing to lend to the crowd.

Simon admitted that the balance or ratio of those two audiences within the community was massively in favour of lending and not borrowing. I asked him what his plans were to advertise and gain more borrowers.
He said that smart credit will be postponed until they get their other products launched first.

Honestly though,… That fintech panel impressive though. I hope chip shares the video, because I think it will give hope to many investors who watch it.

It’s just a shame I didn’t get to speak more to Simon, I stood next to him for like 20 mins waiting for a turn, but then had to leave.
I had a good talk with the CMO of revolut though, he was another Scot from up in my area. So we had a lot to talk about.

A lot of people here are talking about how we compare against competitors.

My thought on it is this. Revolut, Monzo, starling,… they all applied for banking licenses and went through intense regulation and have regulators on their backs…
Whereas representatives from each of those companies were at the meeting, they all congratulated Chip for being clever enough to be a fintech which handles millions of pounds every day… has access to accounts, has savings… gives a return to users… and is dynamic and flexible to adapt, but avoids having to go through normal banking regulators. Which means they are at liberty to move faster and freely without the archaic restrictions others have.

But when you look at other businesses using our model such as oval… you have ask yourself, are they spending more or less than us on transaction fees? Because if they spend more,… they could have 15 times more users than us… it would only force them shut down quicker. They couldn’t afford to operate!
Luckily we have a plan to profit and it’s all on track. Which ultimately define our victory against them.


I don’t think you really answered my questions anyways time will tell what Chip can do and can’t !

My biggest alarm bell is there is no novelty to Chip in simons own words it was “ease of use of the app for people to invest”

Also Simon had no answers how many ChipX paying customers he needs to have every year to ensure they remain in business otherwise they will go for more investment and more investment till one day they go bust.

The high fees for ChipX if the returns are not justified will soo loose its shines for all the avg customers in time which is a challenge Chip needs to plan for but just giving the excuse that the big banks apps are very rudimentary and the Chip app is amazing is not a business strategy.

Nat West has launched Bo bank and the other big players are watching the space… to take back what revolut or Monzo have done and there will be more coming to the space shortly where does that leave Chip.

I was hoping revolut or Monza would partner with Chip cause that would really have been amazing but there is no immediate plans going in that direction from the Chip investor event atleast.