The big banks shutting down branches across South Africa
South Africa’s big legacy banks have been shifting their physical presence in the country, with some—like Nedbank and Absa—significantly reducing their footprint over the past five years.
This trend highlights the growing dominance of digital banking and the evolving strategies of South African banks, which balance the need for physical branches with the convenience and efficiency of digital platforms.
The rise of digital banking has been dramatic in 2024, with official bank data showcasing a sharp increase in online transactions.
Standard Bank, one of South Africa’s largest financial institutions, saw a 30% increase in online transactions during the first half of 2024, with clients performing a staggering 1.5 billion digital transactions.
This equates to an average of 10,400 digital transactions per month per customer, compared to a mere 0.017 transactions in physical branches.
Similarly, other major banks have reported a surge in digital banking activity as clients shift to more convenient, 24/7 access to financial services.
Mobile apps, online platforms, and self-service options have become the primary channels through which customers manage their finances, pay bills, and transfer money.
Over the past five years, some of South Africa’s biggest banks have seen significant shifts in their physical presence.
In 2019, Nedbank listed over 600 branches in its portfolio, but in 2024, this dropped to only 547. Absa had 640 branches in 2019 but only 618 in 2024.
The growing adoption of digital banking solutions is the driving force behind these closures.
As more customers embrace online and mobile platforms, the demand for in-person banking services has steadily decreased.
Banks find it increasingly difficult to justify the high operational costs of maintaining large physical networks, especially as digital transactions skyrocket.
This shift has been so profound that even traditionally branch-focused banks like Nedbank and FNB have significantly invested in their digital infrastructure, offering more integrated services that blend the physical with the digital.
Nedbank’s efforts to improve its app-based services and FNB’s continued push toward mobile-first banking reflect a broader industry trend of prioritising digital accessibility.
However, this does not mean branches are dead. Over the past year, several banks increased their physical presence, some even significantly.
Standard Bank added more than 30 new branches between FY2022 and FY 2023, and FNB’s also added nine branches to its network.
However, it should be noted that in many cases, the banks not only count physical branches but also ‘points of presence’ in these numbers, which include mobile branches and retail kiosks. Thus, banking customers will certainly have noticed a significant decline in walk-in branches taking place.
| Bank | Branches FY2018 | Branches FY2022 | Branches FY2023 | 5-year Change |
| Standard Bank (SA) | 629 | 619 | 652 | +23 (+3.6%) |
| Capitec | 840 | 860 | 866 | +26 (+3.0%) |
| Absa | 640 | 621 | 618 | -22 (-3.4%) |
| FirstRand (FNB) | 619 | 614 | 624 | +5 (+0.8%) |
| Nedbank | 604 | 545 | 547 | -57 (-9.4%) |
| Total | 3,332 | 3,259 | 3,307 | -25 (-0.8%) |
Capitec has also increased its physical presence by adding six branches over the past year, a 0.6% growth in its footprint.
Capitec’s strategy revolves around maintaining a strong physical presence, particularly in areas where access to digital services might still be limited.
Capitec has emphasised that while digital banking is critical, a significant portion of its customer base still prefers face-to-face interactions.
For many South Africans, visiting a branch to speak with a bank representative remains an essential part of managing their finances.
Capitec has embraced this dual approach, expanding its physical branches while continuing to enhance its digital offerings.
As the demand for digital banking continues to rise, South Africa’s major banks are adapting their branch networks to reflect this shift.
Standard Bank, for example, has actively reduced the physical size of its branches, shrinking its total branch square footage by 4% in the past year.
This reduction in space, equivalent to about eight Ellis Park Rugby stadiums, allows the bank to maintain its representation points while cutting operational costs.
However, Standard Bank’s focus is not solely on reducing its physical footprint.
The bank has also invested heavily in enhancing its digital capabilities to ensure a seamless experience for customers who prefer online or mobile banking.
“Our goal is to provide our customers with the best possible banking experience, whether they engage with us digitally or in person,” said Kabelo Makeke, Head of Personal & Private Banking at Standard Bank South Africa.
The bank’s strategic efforts to optimise its branch network and expand digital access are designed to meet its clients’ evolving needs and preferences.
Update: This article has been updated to reflect the five-year trend in bank branches. A previous version of this article used Group data for Standard Bank; this has been corrected to Standard Bank South Africa data.
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