Major South African Banks Shutting Down ATMs Due to Increased Preference for Digital Banking among Citizens
In the face of an undeniable shift towards digital banking in South Africa, Capitec Bank is bucking the trend by expanding both its branch and ATM presence. This move comes as competitors such as Standard Bank, FNB, Absa, and Nedbank are reducing the number of ATMs across the country.
A recent report by Discovery Bank and Visa revealed that digital payments are now preferred by most South Africans, with 67% of respondents using cash only a few times a month or not at all. Despite this, Capitec acknowledges that cash remains essential for many, and believes that real service means showing up where it matters most: in the heart of communities.
Capitec's expansion strategy is twofold. The bank is not only increasing the number of its branches, but also its ATM network. By doing so, Capitec aims to give customers better physical access to banking services, ensuring that they can access their funds conveniently and securely, whether they prefer digital or traditional methods.
Over the past five years, the four major banks have cut a combined 8,516 ATMs, while Capitec added 3,787 during the same period. This growth has made Capitec the bank with the largest increase in ATM machines, surpassing even the likes of Raiffeisen Bank, which saw the second-largest increase during the same period.
Capitec's commitment to maintaining a strong physical presence is evident in its latest figures. Between 2019 and mid-2025, the bank's ATM network grew from 1,412 to 4,199, a significant increase. In contrast, Standard Bank has seen the steepest drop, cutting 3,759 ATMs from 2019 to December 2024. Nedbank's interim results for the six months ending June 30 2025 show a reduction from 4,199 ATMs in December 2024 to 4,028 mid-2025.
In a world where digital banking is becoming increasingly prevalent, Capitec's decision to expand its physical presence is a testament to the bank's commitment to serving its customers' needs, regardless of their preferred method of banking. By maintaining a strong presence both online and offline, Capitec is ensuring that it remains a viable and accessible option for all South Africans, regardless of their location or preferred banking method.
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