Xplainer 1 - ChipX and Community lending
A big hello from ChipHQ…👋🏽
With Chip 2.0 in the pipeline, as promised, we would like to inform our savers of one of its new opportunities…
ChipX will use the best possible features to help our savers earn returns of up to 8% 🚀. Our savers love saving with Chip and playing a role in the Challenger Bank community. Chip, as it stands now, is the best engine for those of us who want to save money without feeling it by leaving it to grow over time. But, community feedback from our savers called for a way to earn a higher return on your Chip savings. ChipX is for you.
If Chip is our savings engine, ChipX is our returns engine.
Once a saver joins they will be able to seamlessly move money from Chip into ChipX. The saver will have full control to move as much or as little money as they want.
Once the money is in ChipX it will be used to fund the host of features which will generate the high returns.
Today we are going to talk about one (and only one 😏) of the most exciting features of ChipX; Community Lending. Then, over the coming weeks we will release more Xplainers on the other features of ChipX to help you prepare for the drop.
The First Feature we want to share with you…Community Lending
Community Lending is one feature which contributes to ChipX users earning up to 8% returns on their money.
Community Lending will exclusively power our own high tech, ethical and powerful challenge to traditional banking. Specifically the current account overdraft.
What is important to remember is that once any money is moved from Chip into ChipX it will be considered Capital at Risk. This is because there is risk involved with our features, such as Community Lending.
However, to minimise this risk, money in ChipX will be diversified into lots of smaller chunks, and spread it out over a host of vetted borrowers. The maximum amount your ChipX money will be broken down into is £10 chunks. If someone is going through hard times and does default, the loss is largely counteracted by your expected returns of up to 8%.
Got questions? Don’t fret.
There will be an Xplainer on the full detail of our state-of-the art credit system soon; but we couldn’t treat you to everything at once, could we? 😉
Same Chip. bigger returns.
To some savers this may not sound like their cup of tea; especially if you’re one of the 75,000 savers happy as you are with Chip. That is absolutely normal. We don’t expect all of our users to join the ChipX community. We will work just as hard to ensure we look after our Chip savers who use the 2.0 app and help them through the features available to all our users on the new update.
If you feel ChipX is for you and you like the idea of boosting your returns rate up to 8%. Stay with us on our ChipX journey and play your part in the FinTech revolution.
We’d be interested to know how many of our users are interested, whether you are or are not, let us know below and feel free to comment any feedback on our Facebook and Slack pages or respond to this email.