South Africa Says Goodbye to Cash: Banks Shutter Branches as Digital Banking Takes Over

South Africa’s largest traditional banks are radically transforming their physical branch networks as the demand for over-the-counter cash services reaches an all-time low.

Data from the country’s “big five” institutions shows a significant shift in how physical floor space is utilised, with several major players aggressively moving toward cashless environments.

Standard Bank: 70% Drop in Cash Withdrawals

Standard Bank has been among the most active in reducing its traditional footprint. The bank reported:

• 50% decline in cash deposits at branches over the past five years

• 70% plummet in withdrawal values at physical locations

The bank is currently rolling out cashless branches in 2026, removing in-branch tellers and consolidating remaining cash services at specific centralised branches.

Kabelo Makeke, CEO of Personal and Private Banking, said demand for advisory-led, digitally enabled banking is rapidly replacing traditional cash handling.

Absa: 22% of Network Converted

Absa has converted more than 22% of its national network into specialised “sales and services outlets” as of 2026.

The bank’s physical footprint has declined from 632 outlets in 2019 to 558 by June 2025. To assist customers during the transition, Absa has introduced private virtual booths where clients can access live digital assistance.

FNB: Cash Recycling and Township Expansion

FNB is focusing on “cash recycling” through Automated Deposit Taking devices, replacing traditional ATMs with smaller, single-tower recycling units.

Jacqui O’Sullivan, Corporate Affairs Executive, said these devices support effective cash recycling within local markets and reduce reliance on costly Cash-in-Transit services.

FNB’s “Branch Community Project” has established 39 new branches in townships, with a goal of 50 locations to improve accessibility in underserved areas.

Nedbank: Gradual Reduction

Nedbank has seen a gradual reduction in retail outlets, falling from 572 in June 2020 to 546 by the end of 2025.

Capitec: Bucking the Trend

While competitors scale back, Capitec is expanding. The bank plans a net increase in both branches and ATMs in 2026, currently operating:

• Over 880 branches

• A network of 8,500 branded ATMs

“We view our branches as learning centresnot just service points,” the bank stated. Consultants are trained to guide clients in transitioning daily banking activities to digital channels.

Capitec is also targeting a massive rollout of Smart ID and passport services, aiming for 300 branches by December 2026.

The ATM Decline

Despite Capitec’s expansion, the overall number of ATMs operated by the “Big Four” banksexcluding Capitechas dropped by 12% since 2020, representing 3,504 removed devices.

Security remains a primary driver, as banks grapple with high insurance costs and protection against ATM bombings and social engineering attacks.

Retail Partnerships

The rise of retail partnerships has accelerated the trend, with banks increasingly relying on Pick n Pay, Boxer, and Shoprite to provide essential cash services through “Cash@Till” services.

This allows banks to reduce operational risks while maintaining cash accessibility.

The Bottom Line

Cash is dying. Branches are closing. Digital is taking over.

But Capitec is expanding. FNB is building in townships. And retail partners are filling the gaps.

South Africa is saying goodbye to cashbut not everyone is saying goodbye to branches. They’re just becoming something different.

{Source: MyBroadband}

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