This is not the first article comparing a Robo-advisory service to the human element of a financial advisor, and I suspect that it won’t be the last. The concept of handing over such a traditionally human-driven role to an algorithm-driven entity, further sparks interest and possible fears relating to robots and technology replacing human jobs and possibly our existence.
The recent global pandemic, even though experienced so differently by us all, brought to light a similar theme: technology quickly filled in the gaps where humans could not physically be, such as food delivery apps and the emergence of Zoom meetings. It further highlighted the fact that humans do not thrive in isolation, away from friends, family and colleagues. There simply is no app that replaces human contact and interaction – personally or professionally. Does the same sentiment carry over to investing and seeking financial advice? Is the value add of a human financial advisor irreplaceable, or can it be optimised with the help of Robo-advisory?
First, let us unpack: what do we mean by Robo-advisory? There are local and international Robo-advisory platforms that offer a range of services whether basic financial advice based on data provided by the user, as well forex and crypto trading platforms. Users of these types of platforms also range from exclusive, to beginner investors trying out different types of trading, to investors who have a financial advisor but for a separate part of their portfolio.
There is some similarity in the experiences of most investors who have used some kind of Robo-advisory platform: the investment style is not as passive as imagined, and they always tend to fall short when investment conditions are not optimal. Even the decision as to which platform to use is cumbersome and can possibly lead to adverse experiences. Some research is required by the investor and can be overwhelming when considerations need to be made around income and capital gains tax or situs tax if the platform is based in a jurisdiction where that might apply.
As a human financial advisor, instinctually (and with career preservation at the forefront) one would have to question the mechanics around Robo-advisory, and what that truly means for an investor and optimising the advice they actually need to meet their long-term financial goals.
The fourth industrial revolution is upon us, and one could say it is unavoidable that technological advances, automation and digitalisation will impact every aspect of our lives, if it has not done so already. An example of an eye-opening statistic is that between 60-73% of the trades that happen on the US stock market are from algorithmic-driven computers. That percentage runs higher at 80% for cryptocurrency-related trades and a staggering 92% for foreign exchange market trades*.
Lastly, one cannot simply ignore technological developments but at the end of the day, the humanness of investors remains a constant. As well as the fact that investors’ needs are at the forefront of the wealth advisory industry. For investors who are still drawn to some type of automated platform the solution here is a hybrid approach. Appointing a financial advisor and disclosing all assets even those on digital platforms, will optimise the risk profiling of the investor, asset allocation of their overall portfolio and even concise estate planning considerations. A hybrid approach can only assist with targeted diversification of portfolios and broaden spheres of risk. Robo-advisory might just fall short when considering the nuance of human financial behaviour, budgeting, and succession planning.
* (Source: Brownstone Research).
Megan joined the Brenthurst Wealth team in March 2026 as an Administrative and Fiduciary Services Assistant at our Val de Vie Office in the Western Cape. Prior to joining Brenthurst, Megan gained three years of experience in the retail sector, where she developed management and client service skills.
I obtained my National Diploma in Financial Information Systems from the Cape Peninsula University of Technology in 1999 and have worked in the wealth management industry since January 2000. Over the years, I have gained extensive experience in various roles, including Portfolio Manager Assistant, Planner Assistant, and Paraplanner.
Esmarelda Isaacs-Andreas joined the Brenthurst Wealth Stellenbosch office in October 2025, taking on the dual role of Receptionist and Fiduciary Administrator.
I obtained my National Diploma in Financial Information Systems from the Cape Peninsula University of Technology in 1999 and have worked in the wealth management industry since January 2000. Over the years, I have gained extensive experience in various roles, including Portfolio Manager Assistant, Planner Assistant, and Paraplanner.
Ashley joined Brenthurst Wealth in January 2025 as Office Administrative Assistant and Receptionist for the Stellenbosch Office.
René Heystek joined Brenthurst Wealth in November 2023, as receptionist and administrative assistant in the newly established George/Garden Route office.
Michelle Heystek has built a career in the financial services over the last two decades, after obtaining her B.Com degree in Financial Management in 2005. Once she joined Brenthurst in 2006, she continued her academic journey, obtaining her Certificate in Wealth Management from INSETA in 2007, followed by a Postgraduate Diploma in Financial Planning from the University of the Free State. In 2008, she earned the Certified Financial Planner (CFP®) designation.
Anelle joined Brenthurst Wealth as a Receptionist and Administrative Assistant to Brian Butchart in the Cape Town office in December 2023. She has a wealth of knowledge from working as a liaison between Financial Advisers and clients at TMA and Absa Investment Management Services (Aims) since 1998. She obtained her B. com degree from the University of Port Elizabeth in 1997.
ADMITTED ATTORNEY | FINANCIAL PLANNER & HEAD OF BRENTHURST FOURWAYS
Sanet was appointed in April 2020, joining our Cape Town team as an Executive Administration Assistant to Renee Eagar. She has been in the financial services industry since 1990. Her previous experience includes positions at Sanlam, BJM and ABSA. She spent her last 12 years working at Alexander Forbes Private Client Wealth as a Senior Wealth Management Assistant. She has received numerous accolades over the years which include but not limited to, Alexander Forbes Client Service Excellence – Silver award in 2014,2015 and 2017. Sanet has also obtained her Certificate in Wealth Management (NQF 5) in 2012 and achieved “Best Student of the Year” from Moonstone.
Maria Smit is a Certified Financial Planner® with over 10 years of experience in the financial planning industry.
