South Africa’s Big Banks Shut Down ATMs While Capitec Expands – What’s Driving the Shift?

South Africa’s big banks are shutting down ATMs across the country as digital banking takes over. However, Capitec is bucking the trend by expanding its network. This shift reflects deeper changes in consumer behavior, security concerns, and the evolving role of cash in South Africa’s economy.

Big Banks Cut ATM Networks

Between June 2023 and June 2024, South Africa’s four major banks—Absa, Standard Bank, Nedbank, and FNB—closed a total of 400 ATMs. The move aligns with the industry’s broader strategy of reducing physical points of presence while investing in digital and mobile banking.

• Absa: Once the leader in ATM numbers, Absa has shut down nearly 3,500 machines since 2019, citing the rise of digital banking.
• FNB: Cut 990 ATMs between 2019 and 2024, aligning with its digital-first strategy.
• Standard Bank: Reduced its ATM footprint significantly, with plans to replace older machines with advanced models.
• Nedbank: Although it maintained a stable ATM presence in previous years, 2024 data shows a shift toward reducing its network.

The decline in ATM numbers is not just about digital adoption. Security risks, including ATM bombings, muggings, and cash-in-transit heists, also play a significant role. Banks are hesitant to replace machines in high-risk areas, prioritizing customer safety over maintaining cash access points.

Capitec’s ATM Expansion – A Different Approach

While the big banks are scaling down, Capitec has taken the opposite approach. The bank added 705 ATMs between August 2023 and August 2024. In the six months from February to August 2024 alone, Capitec increased its ATM count by 367.

Unlike its competitors, Capitec acknowledges that cash remains essential for many South Africans. The bank is expanding its ATM and branch network while also educating customers on digital banking options. This hybrid approach allows Capitec to meet demand while preparing for a gradual shift toward cashless transactions.

What’s Next for ATMs in South Africa?

Despite ATM closures, banks emphasize that cash access remains important. Many are investing in advanced ATM technology to offer more services beyond withdrawals, such as deposits, bill payments, and digital banking support.

However, the trend toward digital banking is clear. The COVID-19 pandemic accelerated digital adoption, and even though cash demand has recovered, it remains below pre-pandemic levels.

With security concerns, shifting customer preferences, and rising digital transactions, South Africa’s banking sector is at a crossroads. Will more banks follow Capitec’s lead in keeping ATMs accessible, or will cash usage continue to decline?

For now, South African consumers must navigate an evolving financial landscape where digital banking is the future—but cash still holds value.

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