Four banks in South Africa doing away with ATMs
As we navigate the digital age, be prepared to bid farewell to the trusty ATM...
Automated Teller Machines (ATM) are reaching their end as banks enter the digital payments era.
Four of South Africa's biggest and most prominent banks are shutting down their ATMs nationwide.
Standard Bank, FNB, Nedbank and Absa are saying goodbye to their ATMs as they realign their shift toward digital payments.
Capitec is the only bank to have increased its ATM footprint in South Africa. The company is committed to giving its customers better access to banking services.
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Standard Bank, Nedbank, Absa and FNB have reduced their ATM footprint by collectively shutting down 8,516 machines nationally over the past five years.
Standard Bank has reduced the most number of ATMs.
Meanwhile, Capitec has increased its ATMs by adding 3,787 in the same time frame.
Capitec said it was "actively increasing its branch and ATM footprint while its competitors are scaling back".
The number of people migrating to digital payment methods has steadily increased. Rising online spending trends and the hidden costs of using cash have allowed many people to adapt from the old way of managing their payments and overall finances.
"Discovery Bank and Visa surveyed South African consumers, and 67% of participants said they use cash only a few times a month or not at all.
"At the end of 2019, the bank had 9,321 ATMs, but this figure dropped by 3,759 to 5,562 machines by the end of December 2024," reports MyBroadband.
In a world where "cash is king", we are adapting to digital banking. Capitec, however, recognises how many customers still prefer dealing with cash.
As much as they may not encourage the use of cash due to safety reasons, the bank says it is committed to "offering cash in a more affordable and accessible way for as long as it’s needed."
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