South Africa’s big banks closing ATMs across the country

South Africa’s big four banks closed 400 auto-teller machines (ATMs) in a year, continuing the industry trend of shutting down physical points of presence across the country as customers go digital.

However, South Africa’s biggest bank by customers, Capitec, has bucked the trend by opening almost double the number of ATMs that the other banks have closed.

The numbers presented in the bank’s latest financial results show that the big four—Absa, Standard Bank, Nedbank, and FNB—shut down 238 ATMs between December 2023 and June 2024.

The number of ATMs across South Africa dropped by 400 year-on-year between June 2023 and June 2024.

The numbers continue a years-long trend among banks of reducing their physical space and gearing more towards digital and online services for clients.

This includes an overall reduction in ATMs and the shrinking of space for physical branches—both of which have been dropping since 2018.

Absa, which had the highest number of ATMs in 2019, shut down nearly 3,500 machines as its customers shifted to e-commerce and digital platforms over the years.

FNB reduced its ATM network by 990, from 5,780 machines to 4,790, between 2019 and 2024. Standard Bank also saw significant cuts.

While Nedbank’s network saw marginal increases over the same period, the latest data shows that it, too, is starting to cut back.

In comparison, Capitec increased its ATM numbers by 367 between February 2024 and August 2024, a comparable six-month period.

Capitec, a far newer bank than the top four, opened 705 ATMs in the comparable 12-month period from August 2023 to August 2024.

The table below shows the change in ATM numbers from the largest South African banks over twelve months.

Why the top banks are closing ATMs

The reduction in ATMs is a natural progression with the reduction in branch space and banks’ physical presence, but other factors also play into the trend.

ATMs pose significant security risks for banks, with bombings, muggings and cash-in-transit heists a constant threat.

Cash use, which is the primary purpose of ATMs, is declining in South Africa. Cash also incurs security costs, and the big banks have made concerted efforts to promote digital transacting.

However, the legacy footprint and customer demand for cash cannot be disregarded, and the banks have made it clear that they will continue to invest in these points of presence.

Speaking to BusinessTech, almost all the banks noted that branch and ATM networks are constantly being examined and that they see continued investment to ensure that they are scaled appropriately.

They all said that, despite a rise in digital transacting, clients still demand access to cash.

Absa said that its strategy with its ATM network was to continue investing in more efficient technologies while still meeting the needs of its clients.

This includes upgrading to newer ATM technology to allow for more services at these points beyond typical cash transactions.

Tshiwela Mhlantla, Managing Executive for Integrated Channels at Absa Everyday Banking, said the group has observed growth in digital activity among clients while seeing a double-digit decline in cash activity.

Despite this decline, Absa’s ATM numbers remain relatively stable.

“Violent crime, like ATM bombings, has also influenced our decision not to replace ATMs in high-risk areas to ensure the safety of our customers,” Mhlantla said.

Nedbank said it plans to keep its “device estate stable” over the next period.

It noted that most ATM closures in 2024 were due to unforeseen events, such as repeat vandalism, ATM bombing attacks, and landlord dependencies.

“Poor-performing devices are relocated to more optimal locations where there is a bigger client need for ATM services,” it said.

Standard Bank said that its current focus is replacing old ATM devices with new tech, noting that clients may see more temporary closures. At the end of January 2025, it had 3,436 machines up and running.

“The Covid-19 pandemic accelerated digital adoption and reduced cash utilisation within the market,
and although cash demand recovered, it is still below pre-Covid pandemic period,” said Kabelo Makeke, Head of Personal and Private Banking, South Africa.

“Consequently, Standard Bank has had to rationalise physical cash infrastructure such as branch and ATM networks, in line with reduced cash demand.”

Capitec the outlier

When asked why it is an outlier in the banking space, Capitec said it is not pushing against the wave of digitalisation but instead accepting that cash remains essential for many.

“Our investment in improving cash availability and enhancing the client experience at our ATMs has increased demand for our own network,” it said.

The group said it is taking a twofold approach to its ATM and branch network: expanding it to meet demand while educating clients about digital channels.

To that end, it said it would continue to adapt to changing client behaviour, including rolling out ATMs where appropriate.

“As client behaviour evolves, we remain committed to providing financial solutions that are inclusive, relevant, and accessible,” Capitech told BusinessTech.