End of bank branches in South Africa as you know them

Bank branches are set to continue shrinking in the coming years as financial institutions move an increasing number of transactions outside of their branch network. 

This comes as banks handle an increasing number of digital transactions and look to reduce their handling of cash, given the costs associated with doing so. 

South African banks are also increasingly leveraging the footprint of national retailers to expand their points of presence in a more efficient way. 

This leaves bank branches to handle large transactions, complex client queries, and business banking customers. 

As a result, the days of large full-service branches are coming to an end, with the Big Four banks of Absa, Standard Bank, Nedbank, and FirstRand (FNB) looking to make more efficient use of their physical infrastructure. 

FNB CEO Harry Kellan explained to Daily Investor that this does not mean that bank branches will be closed, rather that banks will rethink their offerings to serve clients in the best way. 

“We have never had a strategy to say we want to close branches or one to say we want to open branches. We have a strategy to serve our clients,” Kellan said. 

“When we open a branch or relocate a branch, it is about making sure we are present where the customers want us to be present.” 

Kellan explained that, in recent years, banks with physical infrastructure have realised they will always need this presence if they want to be a national full-service bank. 

This echoes comments from Nedbank CFO Mike Davis, who told Daily Investor that banks will always need a physical footprint that clients can engage with, particularly if you offer a wide range of financial services. 

“Having said that, what you have seen Nedbank do is retain its points of presence, but reduce the size of its footprint,” Davis said.  

“If you go back over the years, you will see that every branch and every point of presence was roughly the same size and offered the same services.” 

Now, bank branches across the Big Four are significantly more diverse based on client needs, with very few branches being full-service. 

“We need to ensure that we serve communities where they are and as effectively as we can. If that means it is an agent we can have in that area, or an ATM, or a Pick n Pay kiosk, we will do it,” Kellan said. 

“If the volumes are much bigger and clients demand more sophisticated services, then we will open a branch.” 

Some banks, such as Standard Bank, have taken the rationalisation of branch operations to the point where it now has over 62 cashless branches in South Africa.

Nearly 90% of the bank’s cash deposits are received via non-branch channels, and 97% of withdrawals are made outside its branch network.

As a result, the bank has repurposed some of its traditional branches as part of a deliberate shift towards a more efficient model. 

This transition includes the removal of in-branch Teller Cash Services in selected locations, with cash services consolidated into strategically located centralised branches where processing capabilities have been enhanced.

The rise of retailers

One of the ways in which South Africa’s largest banks are making better use of their physical infrastructure is by leveraging partnerships with major retailers. 

This enables banks to use the footprint of retailers to reach clients, rather than build out their own physical network to maintain points of presence. 

FNB notably does this through its partnership with Pick n Pay, where it uses kiosks or mini-branches within the retailer’s stores to service clients. 

Kellan explained that this is on the back of significant investment in digital banking capabilities, to move transactions and onboarding to the banking app. 

FNB’s insurance business has already benefitted from this partnership, with FNB Insurance CEO Lee Bromefield telling Daily Investor in late 2025 that it has sold over 1,000 products through Pick n Pay already. 

Nedbank’s partnership with Boxer has been around for a bit longer, with the Green Bank placing staff within the retailer’s stores to serve clients. 

“If we have a point of presence with a retailer like Boxer, it is manned by Nedbank staff, but it is very simple in terms of its value offering or proposition,” Davis said. 

“On the other hand, if you go into Sandton City, you will see a huge branch offering everything from transactional banking to stockbroking, asset management, lending, and deposit-taking.”

Davis expects banks to continue rationalising their physical presence to reduce costs and make them more efficient in serving clients.

“So, I think big commercial banks in South Africa will continue to require physical points of presence, but these will evolve to become more efficient by leveraging technology,” he said. 

While FNB is doing something similar with Pick n Pay, Kellan brought particular focus to the bank’s efforts to roll out its “agent” offering in South Africa. 

“In Africa, we have a substantial agent business, and we have imported it into South Africa in the form of AgencyPlus,” Kellan said. 

“We have imported that innovation, and we have grown it from 63 agents in December 2024 to 177 agents in December 2025.”

Kellan explained that these agents largely deal with small and medium enterprises (SME) and can do simple transactions, such as selling vouchers and loading e-wallets. FNB’s new speedpoint devices enable any SME to perform similar functions. 

“This takes out the costs for us in terms of handling cash, and it is also making services available to your customers instead of them travelling to a mall to get to an ATM or branch,” Kellan said. 

“They can actually do simple, quick transactions in their local community. So that works for us as well. You clearly have an additional presence and then can support SMEs and retail clients.”