In recent years, many of these banks have been steadily reducing the number of ATMs while expanding their branch presence to better meet client needs. However, despite an increase in branch numbers, the physical size of these branches has been shrinking.
For example, in the latest financial year, Standard Bank opened 33 new branches but reduced its total branch space by 4% to 239,000 square meters. This shift is part of a broader strategy aimed at cutting operational costs and improving capital efficiency.
The Rise of Digital-Only Banks
South Africa’s traditional banking giants—Absa, Standard Bank, FirstRand (FNB), Nedbank, and Capitec—face growing competition from digital-only banks such as Discovery Bank, Tyme Bank, and Bank Zero. These new entrants operate without physical branches, making them highly capital-efficient.
Some, like Tyme Bank, leverage retail partners’ physical locations to serve as cash points, eliminating the need for standalone branches or ATMs.
The move toward digital banking was accelerated by pandemic-related restrictions that limited in-person transactions, prompting customers to adopt online banking at a faster rate. ATM usage has not rebounded to pre-pandemic levels, rendering many machines inefficient to maintain.
Balancing Digital Growth with Physical Presence
Despite the decline in ATMs, most of the Big Five banks—except Absa—have actually increased their branch numbers over the past year.
According to Kabelo Makeke, head of personal and private banking at Standard Bank, this shift reflects a strategy to realign services with evolving customer preferences. While digital and self-service channels have largely replaced the need for ATMs, they have not eliminated the demand for in-person branch experiences.
Banks recognise that certain financial services still require face-to-face interactions, necessitating a robust but more streamlined branch network.
The Future of Banking Infrastructure
Looking ahead to 2025, this trend is expected to continue, with banks further optimising their physical infrastructure. When asked about their future plans, South Africa’s major banks indicated that they would persist in refining their ATM and branch networks to ensure they remain efficient, cost-effective, and aligned with customer needs.
Read the full article here: “South African banks making major changes to ATMs and branches”
