Standard Bank is actively reducing its ATM presence across South Africa by introducing more efficient “new technology ATM devices” with higher capacity to better serve clients.
In recent years, South Africa’s major banks have been reducing their physical footprint as customers increasingly adopt digital transaction channels. This has led to a reduction in the size and number of branches and a steady decline in ATM numbers.
The primary driver behind the decrease in ATM numbers is the shift to digital channels, but robberies and crime around ATMs have also contributed to their closure.
Kabelo Makeke, head of personal and private banking at Standard Bank, told Daily Investor that pandemic-era restrictions accelerated this trend. Makeke noted that demand for cash withdrawals has not returned to pre-pandemic levels, prompting the bank to close underutilized ATMs.
“In recent years, we have seen a significant increase in ATM cash deposits driven by branch cash migration,” Makeke said. “ATM cash withdrawals remain largely flat while there is a continued decline in the utilization of non-cash ATM services due to digital migration.”
Standard Bank is adjusting its ATM network in response to these trends to better serve client needs. “In some cases, this will result in the removal or relocation of low-transacting ATMs to areas that are more convenient and accessible to clients,” Makeke explained.
Over the past five years, Standard Bank has reduced its ATMs from 9,321 to 6,232. However, the number of branch points of representation has increased by 58 in the past two years to improve client experience and convenience.
The bank is also focusing on introducing new, more efficient ATM machines. “Our focus over the last few years has been to renew the ATM network by introducing new technology ATM devices with significantly improved transaction speed and overall quality of service,” Makeke said.
These new ATMs feature key technological improvements to handle more transactions quickly and efficiently. They offer more client services, including real-time acceptance, validation, and recycling of bulk cash. Additionally, clients can print official bank documents, such as account statements, proof of banking details, and confirmation of deposit, or have them emailed.
“This is part of a five-year journey which will also result in either the removal or relocation of low-transacting ATMs to areas that are more convenient and accessible to clients,” Makeke stated.
Standard Bank’s broader strategy includes becoming a platform business by 2025, aiming to reduce its cost base and increase its return on equity. The bank is leveraging the 20,000 ATMs facilitated by Bankserv Africa’s Saswitch, enabling a nationwide footprint without the need to service thousands of ATMs. To encourage the use of Saswitch ATMs, Standard Bank has removed the fee it used to charge clients for using other banks’ ATMs.
Alongside the ATM overhaul, Makeke said the bank is aligning its branch network and services with customer needs. He emphasized that the branch network is no longer central to the bank’s offering but complements its digital and self-service channels. Standard Bank is therefore focusing on digitally enabled service centres in more convenient and accessible locations for clients.
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