The days of queuing at the corner ATM are rapidly becoming a thing of the past, as South Africa’s major banks pivot toward digital-first banking. Over the past five years, four of the country’s largest financial institutions – Standard Bank, FNB, Nedbank, and Absa – have collectively removed more than 8,500 ATMs from their national networks, marking a decisive move away from cash-based services.
This shift reflects a broader trend in consumer behaviour, as South Africans increasingly adopt digital payments for their convenience, security, and lower costs compared to traditional cash infrastructure.
Among the big four banks, Standard Bank made the most dramatic reduction, scaling back from 9,321 ATMs in 2019 to just 5,562 by the end of 2024 — a drop of 3,759 machines. FNB, Nedbank, and Absa have followed suit with similar reductions as part of broader strategies to streamline physical infrastructure and boost digital service offerings.
The decline in ATM numbers is seen as part of a growing confidence in digital banking and mobile payment platforms, which have grown rapidly in usage since the Covid-19 pandemic.
In stark contrast to its peers, Capitec Bank is actively expanding its ATM and branch network. Between 2019 and 2024, the bank added 3,787 ATMs across the country, signalling a strong commitment to maintaining physical banking channels.
“We are actively increasing our branch and ATM footprint while our competitors are scaling back,” Capitec said in a statement. The bank emphasized the importance of accessible cash services, especially in rural and underbanked communities where digital infrastructure may still be limited.
Capitec’s approach underscores a key reality in South Africa’s evolving banking landscape: while digital adoption is rising fast, cash remains a critical part of financial inclusion for many citizens.
The shift toward digital banking is backed by data. A recent survey conducted by Discovery Bank and Visa found that 67% of South African consumers now use cash only a few times a month—or not at all. This growing preference for digital transactions reflects the rise of e-commerce, mobile wallets, and banking apps that have become integral to daily life.
The pandemic accelerated this transformation, pushing both consumers and businesses to adopt digital channels. Fintech innovation has also played a vital role, offering secure, easy-to-use alternatives to traditional banking methods.
While the major banks cite cost efficiency, security, and operational challenges as reasons for reducing ATM networks, Capitec maintains that cash access will remain available “for as long as it’s needed.”
As digital banking continues to gain ground, financial institutions must strike a balance—modernizing for the future while ensuring no one is left behind. For now, South Africa’s banking landscape reflects a dual approach: digital-first for the majority, with cash services still vital for many.
This transition signals not just a change in technology, but a redefinition of how banking is delivered—and who it serves.
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