The UK-based personal financial management (PFM) app chose Seccl to power its investment platform, which will launch on April 25, per Finextra. Chip users will have access to a Stocks and Shares ISA and a General Investment Account, and as custodian, Seccl will process the trades and settle investments with its API. This adds to Chip’s current offering, which lets users connect their bank accounts to set financial goals and automate savings into its 0.3% annual equivalent rate (AER) savings account or a 1.25% AER savings account for existing customers who invite new users.
The partnership helps Chip diversify its revenue streams in two key ways:
While partnering with Seccl is a good first step toward making its investment product a success, Chip should add a smart transfer feature to encourage user adoption. US PFM players M1 Finance and Wealthfront, for example, allow users to transfer excess cash automatically based on a threshold they set between their in-app checking and investment accounts. This would be a natural expansion of Chip’s existing services, which already automate transfers between users’ banks and in-app savings accounts. An enhanced smart transfer feature could encourage users to make transfers from their Chip savings to their investment accounts, helping them generate higher returns over the long term with minimal manual management. This would both enhance customer satisfaction and attract more users to the investment accounts, generating more revenue.