Snowdrop .ai

Just had an ad come up for them, interesting idea and financially good for alot or people
Free upto £100 overdraft per month & £2 per month for a 1k overdraft.

As they access your bank account , I assume they would have a limited amount of banks similar to Emma and Yolt.

What are your thoughts?

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What’s the catch?

I imagine they gain by analysing your spending habits.


But it also says they plan on opening some sort of marketplace to make money.


Interesting proposition for sure! I’ve signed up - hope to hear more soon.

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So looking at this, it says offer you up to £1000, for £2 per month.

If they offer most £200 as a starting amount for credit limit for example, and the monthly fee was hypercritically interest - it would be 10% APR, if it was £1000 limit it would be 4% APR. That is without actually even borrowing the money.

Or if you didn’t borrow any money all year, then borrowed £200 for a month at the end it would be like a payday lender rate? 140% (£200 borrow, for £24 fee over the year?)

It then also says If the money hasn’t been paid back after 3 months, “we have to convert the amount into a loan with an annual interest rate of 10%.”

This seems to be a bit of a trend at the moment, to put a monthly fee instead of interest, I guess to them, they get guaranteed income each month.

Correct me if my if my logic is way of there, but thats how it comes across to me. :confused:


Chip are planning on doing something interesting in this area.

Like Snowdrop, Chip will inject money into the users bank account to prevent going into overdraft and will charge a lower fee than the bank. But there is a peer-to-peer lending aspect to this, with the money coming from Chip savers who opt in to this community lending. The lenders will get a higher interest rate (but also take on default risk)