South Africa’s largest commercial banks, Standard Bank, First National Bank (FNB), Absa, and Nedbank, are reducing the number of Automated Teller Machines (ATMs) in operation, citing declining usage, high maintenance costs, fraud risks, and a shift toward digital banking.
Between 2019 and 2024, South Africa’s total ATM network declined from 33,171 to 28,967 units, a loss of 4,204 machines, translating to an annual contraction of 2.67%. Standard Bank reduced its ATM footprint from 9,321 to 5,562, cutting 3,759 units. Absa closed 3,518 ATMs, while FNB trimmed its count from 5,780 to 4,790. Nedbank’s reduction was modest, with 58 net closures after retiring older units. In the first six months of 2024 alone, 233 ATMs were decommissioned by the four banks.
Capitec Bank, however, expanded its network by 367 ATMs over the same five-year period, from 8,382 to 8,749, focusing on lower-income and cash-dependent clients. If the current rate of ATM closures continues, projections suggest the country’s ATM network could disappear entirely within the next three decades.
Why Are South African Banks Shutting Down ATMs?
The closures are largely attributed to accelerated digital adoption. According to the 2025 Visa-Discovery SpendTrend report, 84% of South Africans now prefer using digital payments for transactions above R100. Only 33% report using cash frequently, with the majority relying on mobile and online platforms.
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Cost pressures are also driving the reductions. Maintaining ATM infrastructure, especially in low-use or remote areas, is expensive. Banks must also contend with interest charges from the South African Reserve Bank (SARB) on idle cash held in ATMs. Added to this are the security concerns: ATM bombings, theft, and vandalism remain ongoing issues. In some areas, banks have opted not to replace damaged units, citing violent crime.
Cash withdrawal volumes have also not rebounded to pre-pandemic levels. As more customers shift to card and mobile payments, banks are reallocating capital toward digital infrastructure and Automated Deposit Terminals (ADTs) that offer broader functionality.
Who Is Most Affected by the ATM Reductions?
The shift is most evident in urban and affluent areas where customers are more digitally engaged. But rural and lower-income regions are disproportionately affected. These areas continue to rely heavily on cash for everyday expenses such as groceries, school fees, and transport. Limited internet coverage and smartphone access further hinder the transition to digital banking in these zones.
Capitec’s ATM expansion strategy is aimed at filling the gap in cash-reliant areas, but reductions by the larger banks have left visible service shortfalls in remote locations.
South Africa still has a sizable cash-dependent population. Nearly half of adults withdraw their entire account balance immediately after receiving deposits. The elderly, often less comfortable with digital interfaces, are particularly vulnerable, especially in regions where both branches and ATMs have been removed.
Unbanked individuals and informal workers face additional hurdles such as lack of required documents, poor digital literacy, and long distances to the nearest service point. To mitigate this, banks have introduced workarounds such as cashback services at retailers (e.g., Shoprite, Pick n Pay) and mobile-based withdrawal platforms like Absa’s CashSend, FNB’s eWallet, and Standard Bank’s Instant Money.
Absa has also taken steps to improve ATM accessibility for people with disabilities, but these efforts remain limited in scope relative to the broader closures.
Banks continue to push mobile apps, online portals, and USSD banking as alternatives to ATMs. FNB is rolling out ADTs capable of accepting bulk deposits and providing transaction records. Standard Bank is enhancing ATM features to handle official documentation and more complex transactions. However, these solutions require either smartphones, stable internet access, or at least basic digital literacy. Many rural and low-income users are constrained by cost of data, poor mobile coverage, or lack of device access.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.