How the south africa banks atm strategy is reshaping cash access and digital banking for South Africa’s customers

The landscape of banking in South Africa is undergoing a significant transformation, particularly concerning the South Africa banks ATM strategy. While some of the major traditional banks like Absa, Standard Bank, FNB, and Nedbank are noticeably reducing their physical ATM footprint, driven by a surge in digital banking adoption, high operational costs, and security risks, Capitec is bucking the trend by expanding its ATM network. This dual approach highlights a strategic pivot towards a more hybrid banking model that balances the growing preference for digital transactions with the persistent need for cash access, especially in underserved communities. The South African Reserve Bank is also stepping in with plans for a “Cash Smart Strategy” to overhaul the cash system, aiming for greater accessibility and lower costs for all citizens.

Key details shaping the South Africa banks ATM strategy

• ATM network reduction by major banks: Between 2019 and 2024/2025, Absa, Standard Bank, FNB, and Nedbank have collectively reduced their ATM numbers significantly. Absa, for instance, shut down nearly 3,500 ATMs between 2019 and 2024, primarily from 2020 to 2022. Standard Bank decreased its count from 9,321 to 6,232 over five years, and FNB reduced its network from 5,780 to 4,790 machines in the same period. Nedbank showed a modest increase of 19 ATMs since 2019, despite removing 62 outdated devices.
• Capitec’s expansion: In stark contrast, Capitec has significantly increased its ATM footprint, growing from 5,011 ATMs in 2019 to 8,382 in 2024, and reaching around 8,798 by 2025. Capitec plans a net increase in both its branch and ATM network in 2026.
• Drivers for ATM reduction: The primary reasons cited by banks for reducing their ATM presence include:
  • Increased digital banking adoption: More customers are transitioning to online and mobile banking.
  • High operational costs: Maintaining and servicing ATMs, especially in remote or low-traffic areas, is becoming less cost-effective.
  • Security concerns: A rising incidence of ATM-related crimes, such as vandalism, theft, and explosive attacks, has made it challenging and expensive to ensure security. ATM explosive attacks rose by 23% in 2022, though an industry-wide task team has since reduced ATM bombings.
• ATM innovation and enhanced functionality: Banks are not just removing ATMs but also enhancing existing and new machines with advanced technology. This includes:
  • Increased capacity and faster transaction speeds.
  • Real-time acceptance, validation, and recycling of bulk cash.
  • Ability to print or email official bank documents like account statements and proof of banking details.
  • Contactless transaction capabilities (tap-and-go ATMs, like Absa’s rollout of 900 new machines, primarily in Gauteng and Western Cape).
  • Biometric authentication features are mandated in new ATMs as per 2023 government regulations to combat fraud.
• Retail partnerships: To maintain cash access, especially as ATM numbers decline, major banks have partnered with large retailers such as Shoprite and Pick n Pay, allowing customers to withdraw or deposit cash at till points for a small fee.
• South African Reserve Bank’s Cash Smart Strategy: Head of SARB’s Payments Ecosystem Modernisation Programme, Pradeep Maharaj, announced plans in December 2025 for a major overhaul of the nation’s cash system. This strategy aims to:
  • Create a cash-management utility co-owned by banks and retailers.
  • Roll out “white-label” ATMs that any bank’s customers can use at minimal or no cost, promoting interoperability and reducing fees.
  • Ensure physical funds remain accessible for low-income and rural communities.
  • Reduce overall cash usage by 30% to 40% as digitisation levels increase.
• Impact on branch networks: While ATMs are decreasing, some banks like Standard Bank are increasing their number of branch locations, though reducing the physical size of these branches, and some are becoming “cashless branches” focusing on advisory and digital services.

A full summary of the evolving South Africa banks ATM strategy

The way South Africans interact with their money is changing rapidly, and the South Africa banks ATM strategy is a prime example of this evolution. Over the past five years, a clear divergence has emerged among the country’s major financial institutions regarding their approach to Automated Teller Machines (ATMs). While Absa, Standard Bank, First National Bank (FNB), and Nedbank have been systematically reducing their ATM networks, Capitec has boldly expanded its footprint, indicating a nuanced response to shifting customer behaviour and market dynamics.

The rationale behind the reduction by the larger, more established banks is multi-faceted. A significant factor is the rapid acceleration of digital banking adoption. More and more South Africans are opting for online and mobile banking applications for their transactions, reducing the demand for traditional cash-based services. This shift was notably boosted by pandemic-related restrictions, which pushed many customers towards digital channels. Furthermore, the operational costs associated with maintaining a vast network of physical ATMs, coupled with increasing security concerns, have made these machines less viable for some banks. ATM bombings and other criminal activities targeting these machines remain a serious problem in South Africa, contributing to the decision not to replace units in certain high-risk areas.

However, it’s not simply about removal. Banks are also strategically investing in new, technologically advanced ATMs. These “new technology ATM devices” offer enhanced features beyond simple cash withdrawals, such as real-time bulk cash deposits and recycling, and the ability to print or email official bank documents. Absa, for instance, is rolling out ‘tap-and-go’ ATMs with near-field communication (NFC) enabled card readers to improve transaction speed and security by ensuring the card never leaves the customer’s hand. Similarly, FNB is replacing some traditional ATMs with Automated Deposit Taking (ADT) devices to support local market cash recycling and reduce reliance on cash-in-transit services. Standard Bank has also upgraded all its ATMs to faster, next-generation touchscreen machines.

Capitec’s contrasting strategy of expanding its ATM and branch network, including approximately 8,500 branded ATMs by 2026, is largely driven by its focus on financial inclusion and the specific needs of its customer base. Despite the overall digital trend, a substantial portion of the South African population, particularly in lower-income and peri-urban areas and the informal economy, still relies heavily on cash for daily transactions. Capitec views its physical presence as crucial for accessibility and uses its branches as “learning centres” to help customers transition to digital platforms while still offering assisted services. They’ve even encouraged customers to use competitor ATMs for withdrawals at the same fee structure to alleviate queues at their own machines.

Looking ahead, the South African Reserve Bank (SARB) is spearheading a significant overhaul of the cash system with its “Cash Smart Strategy.” Announced by Pradeep Maharaj, Head of the SARB’s Payments Ecosystem Modernisation Programme, in December 2025, this initiative aims to establish a cash-management utility co-owned by banks and retailers. A key component is the introduction of “white-label” ATMs, which would be interoperable, allowing customers from any bank to use them at minimal or no cost. This ambitious plan seeks to reduce the cost of cash management, which currently accounts for about R90 billion annually, and ensure that cash remains accessible, especially for rural and low-income communities who often face higher transaction costs. The SARB expects cash usage to decline by 30% to 40% as the country’s digitisation levels rise to match those of countries like India and the European Union. This comprehensive South Africa banks ATM strategy illustrates a dynamic financial sector adapting to technological advancements, evolving customer preferences, and the unique socio-economic landscape of the nation.

Common questions about the South Africa banks ATM strategy

• Are all South African banks getting rid of their ATMs?
  No, not all. While major banks like Absa, Standard Bank, FNB, and Nedbank have been reducing their ATM networks, Capitec is actively expanding its footprint. The trend is more about optimising and modernising the network rather than complete elimination.
• Why are some banks closing so many ATMs?
  Banks are closing ATMs primarily due to the increased adoption of digital banking channels by customers, high operational costs associated with maintaining physical machines, and significant security concerns like ATM bombings and fraud.
• What new features can I expect from ATMs in South Africa?
  Newer ATMs are more advanced. You can expect faster transaction speeds, increased capacity, the ability to deposit and recycle bulk cash, and options to print or email official bank documents. Some banks are also rolling out contactless ‘tap-and-go’ features and even biometric authentication for enhanced security.
• How will I access cash if my bank closes ATMs near me?
  Banks are forming partnerships with major retailers like Shoprite and Pick n Pay, allowing customers to withdraw or deposit cash at till points for a small fee. Additionally, the South African Reserve Bank plans to introduce “white-label” ATMs that any bank’s customers can use at minimal or no cost, improving accessibility.
• Is South Africa becoming a cashless society?
  While digital payments are rapidly increasing and preferred by many, especially for higher-value transactions, cash still plays a vital role in the South African economy, particularly in townships, rural areas, and the informal sector. The goal is not a completely cashless society, but rather a “Cash Smart Strategy” that makes cash cheaper and more accessible where it’s needed, while encouraging digital adoption.
• What is the South African Reserve Bank’s “Cash Smart Strategy”?
  This is an initiative by the SARB to overhaul the country’s cash system. It aims to establish a cash-management utility and introduce white-label ATMs that are interoperable and cheaper for all bank customers to use. The strategy is designed to ensure financial inclusion, reduce costs, and modernise how cash circulates in the economy.