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ChipX - how it’s going, what we’ve learnt and the next steps

Dear Chip Investor,

I wanted to take a moment to explain where we are with ChipX, Community Lending and Smart Credit.

What we’ve done

As you know, we launched ‘Community Lending’ to X VIP investors, and ‘Smart Credit’ to a carefully selected group of borrowers.

Over the last few months the team has worked hard validating the demand for both sides of this marketplace. The demand for the Community Lending product has been incredible to see and certainly validates that Chip savers want more ways to earn returns on their savings. 

What we’ve learnt

Originating the first Smart Credit loans was not a small task, and I would like to congratulate the whole team for their hard work on what has been a great success. 

The platform currently has hundreds of thousands of pounds within it, and that’s without onboarding the vast majority of you still queuing for access. We’ve learned that the demand for earning better returns on Chip savings is extremely high.

On the borrower side we’ve surpassed our expectations, with over 10% of offered borrowers signing up to SmartCredit. Whilst the selection process for borrowers has been very strict from a credit risk perspective, the loan book has performed nicely within the expected range.

What this means for Chip

To meet our growth ambitions and to continue raising investment capital we need to continue validating these key revenue metrics. They are key contributors to our unit economics and the path to profitability.

Our board of directors and lead investors are pleased with the early results and supporting us to continue a slow and measured scaling process. 

What next for ChipX’s CommunityLending? 

Over the coming months we will continue to take this measured approach with a relatively small loan book. I appreciate that this may be frustrating for those of you with capital available to lend, However, we have to take it slow, see how these first loans perform, monitor the collections process in accordance with our forecasts and satisfy our lead investors. 

We also are working on a marketplace solution that will satisfy Chip savers’ hunger to earn better returns in ChipX. There will be more information to follow, but the massive demand to access our Community Lending product has opened up a further revenue opportunity for us to explore. 

We will of course continue to focus on growth as well as developing some other revenue tests within Chip. This is the best path for us to secure our Series B funding in early 2020 and achieve our longer term business goals.

This has to be about validating the business model, before it’s about scaling the amount of money we can lend.

As per the conditions of ChipX you can withdraw any unlent funds at anytime by emailing

Simon Rabin