Georgie Killik on Silo’s latest innovation

This quarter, Georgie introduces the latest development for our save and invest app. Over 33 years ago, in an old pharmacy in West London, we began our journey with one mission: to make the benefits of investing accessible to all. Built on the principles of accessibility, trust and integrity, we took investment services out of the City and onto the high street. Three years ago, we launched our save and invest app Silo that blended this award-winning service, with next generation technology that is designed to adapt and evolve as life gets more complex. In design terms, Silo has been developed to seamlessly blend the ease of use and efficiency of execution that technology can offer, with the deep investment knowledge and experience of an established business. As such, it has evolved in a way that differentiates it from competing “robo” platforms and start-ups by fully drawing on Killik & Co’s established expertise. This has allowed it to become not just a digital investment companion but also a gateway once a client’s assets grow to the point where they want to engage human advice. With this in mind, Silo has recently been integrated into Killik & Co as a separate Service within the firm’s established suite of Managed Services. This is just one illustration of how the business continues to grow and evolve. In terms of our app’s functionality, the Silo Hub within it now includes a Silo Gift section. Here, beneficiaries can be added using a unique Silo Gift code. Once that short process is complete, single, or regular contributions can be made to the relevant child’s JISA account, with the option to attach a gift message from the donor. Payments are then processed via a secure FCA authorised payments provider, Truelayer, who connect with the relevant bank to authorise a cash transfer into Silo or a regular payment using Direct Debit. Where a grandparent, for example, who does not have a Silo account, wants to make a one-off gift to a grandchild, they just need to ask the Registered Contact to share a unique Silo Gift Link for the relevant JISA. Once this has been received – via SMS, Email or WhatsApp – they can proceed to complete a gift via one click. Alternatively, these can be made at silo.co.uk/gift, using a unique Gift Code.

That is Silo Gift in a nutshell, and it is one of our most significant developments within the app to date. However, it is not the only one. If you would like to find out more about some of the others, I would urge you to read the next article from Nina. ●

Evolving Silo

Georgie Killik

Head of Innovation

However, this quarter, I want to focus on a new feature which we have added to our app called Silo Gift. This represents a critical component of our wider strategy to help different generations to support each other.

Introducing Silo Gift

The needs of families, which may span three or four living generations, have always been at the heart of our business philosophy. In that context, Silo Gift is an exciting initiative which will allow older generations to easily offer effective financial support to younger ones. Our thinking here is simple. Many other types of present will eventually be outgrown, or discarded. However, a tax-effective investment, made early enough in a child’s life could, through the power of long-term compound growth, offer them a financial foundation that will underpin their whole future. The beauty of creating this within a Junior ISA (JISA) wrapper is that all such growth is achieved tax-free. Further, the cumulative benefits can be subsequently preserved, once a child takes full control over the account aged 18, if they choose to convert their account into a standard adult ISA.

Although JISAs must be opened by parents on behalf of their children, once they have been set up, anyone can subsequently contribute, at any time, provided the amount invested during a single tax year does not exceed the current threshold of £9,000 per child.

Digging down

So, how does Silo Gift work? In summary, once a JISA has been opened on behalf of a child by a “Registered Contact” (usually a parent), the process of completing a gift then simply requires them to submit some basic details, add an optional gift message, and make payment.

Providing answers

Nina Manning

Head of Digital Delivery

Nina tackles some of the most common questions she is asked about Silo.

How do I open a Silo account?

The whole process is straightforward and can take as little as 10 minutes. A search for ‘Silo’ in either the App Store, or Google Play, will take someone straight to it. Once some basic personal and banking details have been provided, and a straightforward risk assessment completed, Silo can be used to open, or transfer, a Junior ISA (“JISA”), an Individual Savings Account(“ISA”), or a General Investment Account (GIA).

Can I subscribe to a Silo and non-Silo Killik ISA?

Killik & Co and Silo operate under the same ISA manager. This means that, provided someone does not breach their £20,000 total contribution limit for the 2022/23 tax year, they can contribute in the way that suits them best. So, for example, one option would be to put the full £20,000 into Silo, or into a Killik ISA. This could also be split so that, say, £12,000 goes into Silo via a monthly direct debit, whilst further one-off contributions are made during the year either via the app (as a “boost”) or a payment into a Killik ISA.

Does a parent need to open a JISA on behalf of a child?

Junior ISAs can only be opened for a child, below the age of 18, by an individual who has parental responsibility for them and who lives in the UK. This means that the relevant parent, or guardian, needs to have set up a Silo account first (which may have a balance of zero) in order to open a JISA. They will then become the Registered Contact. There is no obligation to contribute to either account subsequently.

How does an existing account transfer into Silo work?

Anyone wanting to transfer an existing ISA, JISA or GIA into our app should contact support@silo.co.uk to get started. They will then be provided with an authorisation form. Once this has been completed – in many cases this can be done with an electronic signature – everything else needed to complete the transfer will be taken care of on their behalf.

Can I set up regular contributions?

Silo is designed to enable daily, weekly, and monthly contributions, as best suits each user. The process is simple – once someone is logged into Silo, a tap on “Funding” followed by “Scheduled” will take them to the right part of the app.

How do “Intelligent Silos” work?

Once a bank account has been linked to the app, via our secure open banking partner Truelayer, Silo deploys an algorithm that can predict the likely future size of an existing account balance, based on someone’s spending habits. It uses this information to calculate how much more a client could afford to save, in addition to their established recurring payment, without compromising parameters such as the need to maintain a minimum account balance. This maximises the efficiency with which cash held in a bank account is utilised.

What is the difference between a “boost” and an “instant boost”?

A regular account boost is done via the standard Direct Debit cycle, which follows a fixed payment timeline. An instant boost, on the other hand, enables funds to move immediately, as it allows the app to connect with a bank account to instantly authorise a payment. This can be helpful when a cash movement is time-sensitive, perhaps ahead of the end of the tax year.

What does Silo invest in?

The app offers a discretionary management service, which means that it manages money on behalf of clients. This core part of Silo is overseen by Mick Gilligan, our experienced in-house funds expert. The exact underlying investment plan chosen depends on an individual’s circumstances and attitude to risk. Each may access up to 16 different funds, all of which contain a wide range of holdings designed to achieve diversification (avoiding “too many eggs in one basket”). A breakdown of where a client’s money is invested as a result is available on the “Portfolio” page within the app.

What is in the development pipeline?

In the fast-paced world of technology, nothing stands still for long. That is why, on the investment side, our experts are looking to expand Silo’s investment proposition by offering clients the option to create a socially responsible investment plan. Turning to savings wrappers, we hope in time to widen the choice available within the app to include self-invested pensions (SIPPs) and junior SIPPs. Clients can be confident that both will be backed by the firm’s longstanding expertise in pension management and administration. ●

No time like the present. No present like time.

The longer you invest for a child’s future, the greater the potential for growth. A Silo JISA is quick and simple to open and you can invite friends and family to contribute with our new Silo Gift feature. Open a JISA for a child today.

Capital at risk. Past performance is not an indication of future performance. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future.