The Disappearing High Street Bank

Walk down many of South Africa’s main streets today, and you might notice an absence. The familiar local bank branch, once a cornerstone of community commerce, is increasingly becoming a relic. Over the past decade, four of the country’s top five banks have been in full-scale retreat from physical locations, shutting down hundreds of branches in a dramatic reshaping of how they serve customers.

The numbers tell a stark story of contraction:

• Nedbank has cut the deepest, closing 194 branches since 2015.

• Absa follows, reducing its network by 166 branches.

• Standard Bank has trimmed 161 sites, leaving it with the smallest network at just 479 branches.

• FNB has seen a more modest, but still significant, reduction of 93 branches.

This widespread pullback is no accident. It’s a direct response to the explosive growth of digital banking. Why maintain expensive brick-and-mortar outlets when millions of customers are happily transacting on apps, online, and at ATMs? For these institutions, the branch has become a cost centre in an increasingly digital-first world.

The Outlier: Capitec’s Counter-Intuitive Bet

In the midst of this industry-wide retreat, one player is marching in the opposite direction. Capitec isn’t just holding steady; it’s expanding aggressively. From 668 branches in 2015, it has grown its network to 880 branches todayand counting.

This isn’t a nostalgic gamble. It’s a calculated strategy rooted in a different vision of what a bank should be. While its competitors see branches as costs, Capitec sees them as “learning centres.” In a statement, the bank explained its philosophy: “We believe that real service means showing up where it matters most: in the heart of communities.”

For Capitec, the physical branch is a tool for inclusion and education. It’s where trained consultants guide clientsmany of whom are new to formal banking or digital platformsthrough their financial journeys. It’s a commitment to being accessible, in person, in a customer’s preferred language. This expansion is also a pragmatic nod to reality: “Millions of South African residents still rely on cash,” the bank acknowledges, and it is ensuring cash access remains “affordable and accessible.”

Two Visions of the Future

The contrasting strategies highlight a fundamental divide in how South Africa’s banks view the future.

The Digital-First Model (Absa, FNB, Nedbank, Standard Bank): The future is app-based, automated, and efficient. Physical presence is streamlined to cut costs and drive profits, serving primarily complex needs that can’t be handled online. Banking becomes a service you carry in your pocket.

The Hybrid Community Model (Capitec): The future is blended. Digital convenience is vital, but so is human touch, education, and physical access, especially for the millions still navigating the financial system. The branch is a bridge, not a barrier.

For customers, this means choice is crystallising. You can opt for a nearly entirely digital relationship with a historic bank, or you can choose a bank betting that a friendly, local face and a helping hand still hold immense value. One thing is certain: the face of South African banking is changing, and the empty shopfront on the high street is just the most visible sign.