SA’s big banks close thousands of ATMs as digital banking rises; Capitec expands its fleet

JOHANNESBURG — 5 July 2024

South Africa’s four largest banks have closed 8,516 ATMs nationwide over five years, accelerating a shift to digital banking while Capitec expands its cash machine network by 3,787 during the same period.

Standard Bank, FNB, Nedbank, and Absa have significantly reduced physical cash services due to increasing digital adoption and the high costs of maintaining ATMs. Standard Bank led the reduction, cutting its ATM count from 9,321 in 2019 to 5,562 by end-2024 – a reduction of 3,759 machines. (Bank disclosures)

Capitec countered this trend by expanding its ATM network and stating it remains committed to “affordable and accessible cash services”. The bank said: “We are actively increasing our branch and ATM footprint while our competitors are scaling back.” (Capitec statement)

Consumer preferences are shifting rapidly with 67% of South Africans using cash only occasionally or not at all. (Discovery Bank and Visa survey)

Cashless transactions have surged since the COVID-19 pandemic, driven by e-commerce growth and fintech innovation. Banks cite safety concerns and cash-handling costs as reasons for reducing ATMs.

Despite the digital push, Capitec maintains its focus on physical access with a statement confirming it will provide cash services “for as long as it’s needed,” particularly for underbanked communities.