Australian fintech start-up Chipkie was recently unveiled to the public as it set its sights on providing services to the ‘Bank of Mum and Dad’ sector in Australia.
With this sector now estimated to be between the fifth and ninth largest lender in the country, and new research by Digital Finance Analytics revealing that 60 per cent of first-home buyers are turning to informal familial loans, Chipkie aims to bring security and transparency to these arrangements by transforming informal agreements into legally binding loans through a user-friendly interface and tracking dashboard. It automates communication, provides secure repayment solutions, and offers tailored, legally binding contracts to prevent misunderstandings, provide loan security, and preserve relationships.
Founded by female tech entrepreneur Michelle Lomas (pictured), Chipkie was born from her own experience securing a loan from family for her first home purchase in Sydney.
“I realised there was a glaring gap in tools to formalise and manage family loans beyond rudimentary spreadsheets and costly legal contracts,” Lomas said. “Chipkie fills this void by offering a free, intuitive platform that simplifies the legalities, management, and tracking of loans between loved ones.”
Recent research by Chipkie underscores the need for such solutions as even though almost half enjoyed lending money, 91 per cent of respondents cited concerns over relationship strain, awkward conversations and repayment uncertainties when lending money to family and friends. However, over a third desire to lend more to support the ones they love if there were tools that mitigate these risks.
“The ‘Bank of Mum and Dad’ now plays a crucial role for majority of Australians, not only in housing but also in supporting various life milestones such as travel, business ventures, and everyday expenses,” Lomas said. “By formalising these transactions, Chipkie empowers Australians to support their loved ones responsibly, fostering stronger community bonds.
“We envision a future where Australians embrace lending as a positive experience that grows our communities; after all, it’s now become, for most Australians, the only way to get ahead,” Lomas added. “Our goal is to see all Australians feel good about lending to loved ones and say ‘yes’ more often. Chipkie is here to make that easier, safer and more enjoyable, promoting economic resilience and community cohesion.”
