FinTech start-up behind an artificial intelligence-powered automatic savings app has raised more than £600,000 to revolutionise how people save and spend their money.

Chip launched a crowdfunding campaign on Crowdcube in hopes to raise between £600,000 and £2.4m and has so far attracted funds from more than 2,100 investors.

Chip connects to a user's current account and uses an AI-powered algorithm to analyse transactions and automatically calculate how much you can afford to save based on recent spending habits.

The savings are then automatically transferred to the app where they are put towards goals, withdrawn or used to reduce borrowing.

Chip, which launched in late 2016, claims to have already processed £6.7m of savings and analysed approximately 10 million transactions.

The company is now looking to become a savings-focussed challenger bank and plans to use the proceeds of the crowdfunding campaign to finance a banking licence application.

Next year it plans to launch its plugin overdraft feature. By the end of 2020, Chip hopes to have 500,000 active users, £500m saved and over £1.4bn of borrowing reduced to the lowest possible cost.

The start-up's Crowdcube campaign is currently set to close at the end of December.