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South African banks are shutting down ATMs as the adoption of digital banking continues to rise, with more customers transitioning to online and mobile banking platforms.
According to an analysis by BusinessTech, the number of ATMs in the country has declined significantly, dropping from 33,171 in 2019 to 28,967 in 2023/2024. This reduction is driven by the decreasing demand for physical ATMs as customers increasingly embrace digital banking solutions.
Additionally, a surge in ATM-related crimes, such as vandalism and theft, has made it more challenging and costly for banks to maintain and secure these machines.
Absa Bank, which had the highest number of ATMs in 2019, has closed nearly 3,500 of them due to customers shifting to eCommerce and digital platforms. The majority of these closures occurred between 2020 and 2022. The bank also cited violent crimes, including ATM bombings, as a significant factor making it impractical to replace certain units.
First National Bank (FNB), one of South Africa’s “big four” banks, reduced its ATMs from 5,780 in 2019 to 4,790 in 2023/2024. Nedbank saw a decline from 4,257 to 4,199 ATMs in the same period. Standard Bank also reduced its ATMs from 9,321 in 2019 to 7,100 in 2023/2024. Despite the reduction, Standard Bank is upgrading its remaining ATMs with new technology to enhance transaction speed and service quality. These new ATMs offer additional services, such as real-time acceptance, validation, and recycling of bulk cash.
In contrast, Nedbank recorded a modest increase of 19 ATMs since 2019, despite removing 62 outdated devices within the past two years. The bank highlighted a continuing demand for ATM services, even from non-Nedbank customers. However, it acknowledged the growing popularity of digital payments and transfers, which may impact future ATM transaction growth.
The emergence of alternate cash access points, such as TymeBank’s network of 15,000 service points at major retailers and in-store kiosks, has also contributed to the decreased reliance on traditional ATMs.
As digital solutions become more prevalent and sophisticated, the banking industry is likely to continue evolving. The decommissioning of ATMs in South Africa is a clear indicator of this shift, signaling a future where digital banking takes precedence, and traditional banking methods gradually become obsolete.
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