Business

While Others Shut Down, Capitec Doubles Down on ATMs in South Africa

Published

2 months ago

July 3, 2025

Chiraag

Capitec ATM expansion, Capitec banking strategy, South African banks ATM closures, Capitec customer service, ATMs in rural South Africa, digital payments trend, Capitec network growth, financial access South Africa, Capitec CEO Gerrie Fourie, Joburg ETC

South Africa’s biggest bank by customers is swimming against the current and the reason is all about who they serve.

In a country where major banks are quietly pulling the plug on thousands of ATMs, one bank is refusing to follow the crowd. Capitec, the South African retail banking giant, is doing the exact opposite: it’s putting up 800 more ATMs across the country.

Why? Because for millions of South Africans, cash is still king and Capitec knows it.

The Last Bank Standing for Cash

Capitec’s latest move stands out in a national banking landscape that’s been steadily shrinking its cash infrastructure. In the past five years alone, South Africa’s traditional “Big Four” banks (FNB, Standard Bank, Absa, and Nedbank) have decommissioned more than 8,000 ATMs combined.

Standard Bank’s ATM footprint has nearly halved, dropping from 9,321 machines to just over 5,500. Absa has lost more than 3,500. FNB and Nedbank have also scaled back. Meanwhile, Capitec has grown its ATM count from 5,011 in 2019 to a staggering 8,798, with more to come.

Outgoing CEO Gerrie Fourie, speaking before his retirement, explained the logic: many of Capitec’s clients still depend on physical cash. The bank, unlike digital-only challengers like TymeBank, Discovery Bank, and Bank Zero, understands the need to meet people where they are, especially in rural and lower-income areas where cash remains a necessity.

Why the Rest Are Tapping Out

Capitec’s strategy is unique, but it’s not happening in a vacuum. Across the globe, ATM numbers are plummeting. A study by Merchant Machine showed that South Africa is losing ATMs at an annual rate of 2.67%. If that trend continues, we could be living in an ATM-free South Africa within three decades.

The shift is being driven by a cultural and economic pivot towards digital banking. Digital payments are safer, cheaper, and more convenient. Banks like Discovery are leaning into this change. Their 2025 SpendTrend report found that 84% of South Africans now prefer cards or digital wallets for most purchases.

Even among older generations, cash use is dropping. For anything over R100, nearly all consumers opt for digital. Among younger South Africans, 83% say they’re using cash less than they were just a year ago.

Image 1: Franchise Association of South Africa

Capitec’s Cash Play is About More Than Cash

Despite its continued investment in ATMs and branches, Capitec isn’t resisting the digital wave; it’s straddling both worlds. Fourie admits the bank would prefer its customers go digital. Why? Not just for convenience or safety, but for the valuable insights digital payments offer.

“Digital transactions help us understand our customers better,” he said. More data means better services, smarter fraud prevention, and stronger customer engagement.

Still, Capitec’s boots-on-the-ground strategy sets it apart from other “legacy” banks that seem to be treating cash as yesterday’s news.

The Bigger Picture: What This Means for You

If you’ve ever been stuck in a queue at a mall ATM or driven around for ages looking for one that isn’t “out of service,” you already know the pain.

Capitec’s decision could ease that stress, especially in underserved communities where the disappearance of ATMs is more than a hassle; it’s a barrier to financial access.

It also shows that in a country with deep inequalities, digital isn’t always enough. For many South Africans, real-world infrastructure still matters and Capitec is banking on that truth.