Big changes coming to ATMs and branches at South Africa’s biggest banks
South Africa’s five biggest banks are continuously reviewing their ATM and branch networks to ensure they remain efficient and safe for customers to use.
As a result, most of these banks have been steadily shutting down ATMs in the past few years while increasing their branch network to better serve client needs.
However, as these banks have increased their branch networks, these branches have been made smaller.
For example, in the most recent financial year, Standard Bank opened 33 new branches but managed to reduce its total branch square meterage by 4% to 239,000 square meters.
This is part of a wider strategy to reduce their operating costs and increase their capital efficiency.
South Africa’s ‘Big Five’ banks – Absa, Standard Bank, FirstRand (FNB), Nedbank, and Capitec – have come under increasing pressure from new ‘challenger’ banks.
These banks, such as Discovery Bank, Tyme Bank, and Bank Zero, provide digital-only offerings and do not have a physical branch network.
This makes them incredibly capital-efficient as they do not have to maintain physical infrastructure to service their clients.
Some, such as Tyme Bank, leverage South African retailers’ footprints and distribution channels as cash points.
Another major catalyst of this shift was the pandemic-era restrictions imposed on in-person interactions, which forced clients to use digital transaction channels and pushed banks to improve their online offerings.
The number of transactions conducted through ATMs has not recovered to its pre-pandemic levels, making a significant portion of these devices inefficient to operate.
While the number of ATMs around the country has clearly declined, the Big Five banks – besides Absa – have actually increased their branch numbers over the past financial year.
Standard Bank’s head of personal and private banking, Kabelo Makeke, said this is part of a strategy from banks to adjust their services to better align with customer needs.
He explained to Daily Investor that branch networks are no longer seen as central to a bank’s offering but are complimentary to its digital and self-service channels.
As such, their digital offerings have largely replaced the need for ATMs but have not impacted the need for a branch experience.
Some banks have also noted that some services cannot be offered through digital platforms and still require personal interactions, maintaining the need for a significant branch network.
The trend of ATMs being shut down and branch networks growing but the size of the facilities shrinking is set to continue in 2025.
Daily Investor asked South Africa’s five biggest banks about their plans for their ATM and branch networks in 2025. They are all set to continue reviewing their physical infrastructure to make it more efficient.
Absa
Absa explained to Daily Investor that it plans to strategically enhance its branch network throughout 2025 by reducing the size of its branches to create more ‘lean-format’ facilities.
These facilities are physical branches that are heavily digitalised to offer a full range of services in a smaller space and with less wait time.
However, this does not mean that the personal experience is being done away with as Absa has invested heavily in upskilling its branch staff to provide more personalised service to clients.
Absa said it will continue to own and directly manage the largest bank-owned fleet of ATMs in South Africa, ensuring that we are able to deliver cash and other essential services to clients.
Again, while it is important for Absa to retain its ability to service its clients across the country, the bank is looking to make its operations more efficient in 2025.
“As customer demand for cash evolves driven by an increase in adoption of digital banking services by customers, we are deliberate in how we review our ATM footprint,” it said.
It has focused investment into the modernisation of our ATM fleet to lead and keep abreast of trends, while making the network more efficient through having less devices able to service the same number or more clients.
“We have invested in newer devices that have superior capabilities – enabling a new generation of ATMs that accept higher value cash notes as well as coin deposits.”
It noted that in some instances, the rollout of these new devices may result in the consolidation of branches but this would be a last resort for the bank.
“In such instances, we aim to leave the community with a capability to continue to transact, mainly through our multi-functional ATMs and self-service kiosks.”
| Measure | FY2022 | Latest figures | Difference |
| Number of branches | 621 | 621 | 0 |
| Number of ATMs | 5,364 | 5,169 | -195 |
Standard Bank
Standard Bank has significantly cut its number of ATMs and shrunk the size of its branches in South Africa over the past few years.
As the bank has one of the largest physical footprints across South Africa, it has pushed hard to make its ATM and branch networks more efficeint.
“Over the last few years, we have optimised our ATM footprint, and we are continuously reviewing areas where there is under-representation and making the necessary interventions,” Standard Bank South Africa told Daily Investor.
In a similar vein to Absa, Standard Bank has also been rolling out new ATMs across South Africa to ensure fewer devices can service the same number or more clients.
“We constantly conduct surveys to gauge client satisfaction, and our clients have generally given us positive reviews. The upgrading of our ATM fleet and modernisation of systems will significantly improve our client’s experience at our ATMs,” it said.
Standard Bank estimates that it has a network of around 3,500 ATMs.
However, this is balanced by the fact that many of its clients still need to access and process cash, and the bank said it understands there is no substitute for in-person meetings when dealing with complex issues.
Standard Bank’s head of personal and private banking, Kabelo Makeke, previously told Daily Investor that the new ATMs have higher capacity and offer more client services, including real-time acceptance, validation, and recycling of bulk cash.
“In recent years, we have seen a significant increase in ATM cash deposits driven by branch cash migration.”
“ATM cash withdrawals remain largely flat whilst there is continued decline in utilisation of non-cash ATM services due to digital migration.”
“In some cases, this will result in the removal or relocation of low transacting ATMs to areas that are more convenient and accessible to clients.”
| Measure | FY2022 | Latest figures | Difference |
| Number of branches | 619 | 619 | +33 |
| Number of ATMs | 3,780 | 3,548 | -232 |
Capitec
As the youngest of the Big Five, Capitec is the exception as the bank continues to strongly grow its branch and ATM networks.
Capitec has increased its number of ATMs from 5,011 in 2019 to 8,382 in 2024 to meet the growing demand for its services.
It explained that the demand for ATM services depends on numerous factors, including economic growth and the interest rate.
However, it emphasised that digital solutions increase the options available to clients, impacting the use of cash in South Africa.
CEO Gerrie Fourie has been clear about cash being Capitec’s number one enemy as it prevents the bank from assessing the transactional behaviour of its clients.
“Our number one enemy is cash. Why is it number one? Because when you withdraw R1,000, I do not know what you do with it. The moment you do it via a card or a digital channel, I know exactly what you are doing with it,” Fourie said.
The transactions conducted through digital channels generate valuable data that the bank can use to provide services targeted to its clients’s needs and enhance their experience.
Fourie said it is also natural that with technology, people increasingly use digital means to transact, with cash and branch transactions making up only 11% of Capitec’s total.
This is down from 13% a year ago. The bank’s clients conducted around 320 million cash and branch transactions in the six months to the end of August.
In comparison, they conducted 1.3 billion transactions using cards and 92 million using PayShap or Capitec’s Pay to Cell offerings.
“We strongly believe in building lasting relationships and empowering clients to bank better by using digital and physical access channels to meet them where they are,” Capitec told Daily Investor.
Clients can do all their banking on our app, which grew by 21% to 12.4 million users in August 2024, while accessing branches in every major community, it said.
“Branches provide essential services for those who prefer or need in-person support. They are staffed by members of the community who understand their unique needs and speak their language/s.”
With 873 branches and nearly 9,000 ATMs across South Africa, we’re proud to offer a robust infrastructure that ensures we stay accessible in the moments that matter.
| Measure | FY2023 | Latest figures | Difference |
| Number of branches | 860 | 873 | +13 |
| Number of ATMs | 7,898 | 8,382 | +484 |
Nedbank
Nedbank has been at the forefront of making its physical infrastructure more efficient in recent years, with the bank focussing on enhancing its digital capabilities.
Over recent years, Nedbank has automated various services that were previously accessible only in branches or via direct human interaction.
It told Daily Investor that its focus for 2025 and beyond is to continue to transform its branches into smaller, innovative formats while increasing our points of presence by ten.
Currently, over 200 retail client services (up from 170+ in 2022) and more than 400 juristic services (up from 200+ in 2022) are now available through its apps and electronic platforms.
This shift has significantly decreased the frequency of branch visits and ATM transactions, allowing the bank to operate more efficiently.
Through its Project Imagine initiative, which focuses on digitally-driven outlets, Nedbank has streamlined its physical presence. In 2023, its branch floor space was reduced by 27,000m². Since 2014, total floor space has decreased by 111,000m², bringing it down to 137,000m².
In the 2023 financial year alone, the bank cut its branch and head office floor space by 62,000m². During the same period, it launched 386 new Imagine digital branches, which now constitute 71% of its branch network.
The Imagine branch concept emphasises convenience and self-service digital banking, featuring innovations like an appointment scheduling system integrated into the banking app suite.
“We assess our devices regularly to ensure our device estate remains current and is optimally placed while prioritising the safety of our customers,” the bank said.
Nedbank continuously invests in new ATM technology to safeguard our clients and maintain a stable network. This also enabled the bank to make its devices more efficient.
Nedbank’s adaptation has also been driven by strong growth in digital transaction volumes alongside a notable decline in branch-based transactions.
“We aim to meet the needs of the communities we serve by ensuring that our physical points of presence remain relevant and accessible while factoring in the ever-increasing and crucial role our Nedbank Money App is playing in integrating physical and digital experiences for our clients.”
The bank highlighted in its latest annual report that its transition to a new Target Operating Model – focused on optimising its physical infrastructure and organisational framework – has achieved savings of R2.2 billion.
| Measure | FY2022 | Latest figures | Difference |
| Number of branches | 545 | 543 | -2 |
| Number of ATMs | 4,334 | 4,107 | -164 |
FirstRand (FNB)
FNB appears to have undergone a much slower process of closing down some of its ATMs and reshaping its branch network.
However, these numbers do not fully reflect the fundamental change in the nature of its ATM and branch offering in recent years.
FNB could not respond to Daily Investor’s questions about its ATM and branch network but has previously provided insight into its strategy regarding its physical infrastructure.
Responding to queries last year, FNB Corporate Affairs Executive Jacqui O’Sullivan explained that the bank regularly reassesses and reviews the placement and quantity of its ATMs.
“While there has been a slight decline in traditional ATM numbers, we are focusing on deploying more Automated Deposit Terminals (ADTs), which provide enhanced functionality for our customers,” said O’Sullivan.
ADTs enable customers to deposit cash that is authenticated, counted, and immediately credited to their FNB accounts. These machines also offer cash withdrawals, bank statement printing, and prepaid purchases for airtime and electricity.
“We are not pursuing a strategy to reduce our self-service device footprint. In fact, the availability of automated machines for customer self-service has remained stable year on year,” O’Sullivan added.
The modest decrease in traditional ATMs is largely attributed to FNB’s efforts to convert some of them into ADTs, which offer deposit-taking capabilities alongside standard ATM services.
“FNB remains committed to ensuring sufficient self-service device coverage across all regions so our customers can enjoy convenient banking options,” O’Sullivan emphasised.
The bank continues to expand its branch network, ensuring branches are optimally sized and operate efficiently. It also takes a strategic approach when selecting locations for new branches.
FNB is currently implementing its Branch Community Project, launched in May 2021, which aims to build 50 new branches in community townships over the coming years.
This initiative is designed to increase FNB’s presence in previously underserved areas. Since the project’s inception, 31 community branches have been successfully opened.
| Measure | December 2022 | Latest figures | Difference |
| Number of branches | 545 | 623 | +78 |
| Number of ATMs | 4,789 | 4,750 | -39 |
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