Standard Bank rolling out more advanced ATMs across South Africa

Standard Bank has been steadily cutting down its ATM footprint across South Africa by introducing “new technology ATM devices” that are more efficient and have greater capacity to serve clients. 

In recent years, South Africa’s biggest banks have been on a crusade to reduce their physical footprint as clients rapidly adopt digital transaction channels. 

The size of branches and their number have been cut, while ATM numbers have steadily dwindled. 

While the shift to digital channels has been the major driver behind the decline in ATM numbers, robberies and crime around the machines have also pushed banks to close them down. 

Kabelo Makeke, head of personal and private banking at Standard Bank, told Daily Investor that pandemic-era restrictions accelerated this trend. 

Makeke said demand for cash withdrawals has not fully recovered to pre-pandemic levels, leaving the bank with little choice but to shutter underutilised ATMs. 

“In recent years, we have seen a significant increase in ATM cash deposits driven by branch cash migration,” he said. 

“ATM cash withdrawals remain largely flat whilst there is continued decline in utilisation of non-cash ATM services due to digital migration.”

Thus, Standard Bank has begun adjusting its ATM network in response to these trends and as part of its efforts to better serve client needs.  

“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.”

Standard Bank has slashed its ATMs from 9,321 to 6,232 over the last five years. However, its branch points of representations has risen by 58 in the past two years. 

This is for improved client experience and convenience. It also aims to bring banking services closer to our clients for improved client experience and convenience.

New ATMs and branches

Makeke said Standard Bank has also begun reducing its ATM numbers as it introduces new machines that are significantly more efficient. 

“Our focus over the last few years has been to renew the ATM network by introducing new technology ATM devices with significantly improved transaction speed and overall quality of service,” he said.  

These new ATMs have several key improvements in their technology infrastructure to handle a greater capacity of transactions and complete them more quickly. 

While this is not a complete revolution of ATM services, it enables Standard Bank to offer more features and handle more clients with fewer machines.

“The new ATMs have higher capacity and offer more client services, including real-time acceptance, validation, and recycling of bulk cash,” Makeke said. 

Official bank documents such as account statements, proof of banking details, and confirmation of deposit can also be printed at these new ATMs or emailed to the client. 

“This is part of a five-year journey which will also result in either removal or relocation of low-transacting ATMs to areas that are more convenient and accessible to clients.” 

On a broader scale, this is part of the bank’s drive to become a platform business by 2025, reducing its cost base and increasing its return on equity.

Standard Bank has also begun to lean more heavily into using the 20,000 ATMs whose transactions are facilitated by Bankserv Africa’s Saswitch. 

This enables the bank to have a countrywide footprint and reach its clients without having to service thousands of ATMs.

To encourage clients to use these Saswitch ATMs, Standard Bank has removed the Saswitch fee it used to charge clients for using other banks’ ATMs. 

Alongside its ATM renovation, Makeke said the bank is adjusting its branch network and services to better align with customer needs. 

He explained that the bank sees its branch network as no longer central to its offering but as a compliment to its digital and self-service channels. 

Therefore, Standard Bank is focusing on digitally enabled service centres that offer these services in areas that are more convenient and accessible to its clients.