South African Banks Are Upgrading ATMs Rather Than Cutting Footprint

On a street corner in Johannesburg, the ATM remains one of the most visible symbols of banking in South Africa. But behind that familiar screen and keypad, the machines are being quietly reworked rather than removed

South Africa’s major banks are not planning significant reductions to their automated teller machine networks in 2026. Instead, they are replacing ageing units with newer models, adding smarter self service functions, and recalibrating the balance between cash access, cost, and security.

The shift comes after several years of falling ATM usage, rising maintenance costs, and persistent security risks, including attacks on machines by criminals targeting stored cash. In some cases, banks have chosen not to replace damaged ATMs, weighing cost against risk.

At the same time, banks have expanded partnerships with retailers such as Shoprite and Pick n Pay, allowing customers to withdraw and deposit cash at supermarket tills, gradually reshaping where and how cash is accessed.

A MyBroadband analysis found a 12 percent decline in the number of ATMs across South Africa’s five largest banks, Absa, Capitec, FNB, Nedbank, and Standard Bank, between 2020 and 2025.

Capitec was the only bank to increase its ATM count over that period, although its figures included coin and note recyclers as well as partnership devices.

Standard Bank said it does not plan any ATM closures or removals in 2026. Instead, it will replace 600 older machines with newer models and add 200 additional technology enabled ATM devices.

“In addition, we will also install 200 new technology ATM devices and bring banking services closer to our customers,” it said.

“Our ATM network strategy is part of our broader distribution strategy that enables safe, convenient, and affordable access to cash and other self-service banking services for our customers.”

First National Bank said its ATM network has remained largely stable in recent years. It currently operates 4,781 cash withdrawal and deposit devices, only slightly fewer than in 2022.

FNB points of presence chief operations officer Elmar Gräter said the bank is taking a measured approach to removing devices, while ensuring customers retain sufficient access points. These included ATMs, automated deposit-taking devices, and statement-printing kiosks, but excluded retailer service points.

FNB is also replacing some ATMs with automated deposit-taking devices designed to recycle cash and reduce reliance on cash in transit services.

“The new and improved single tower recycling devices are significantly smaller in size, which makes it easier to optimise branch space,” Gräter said.

“This allows us to add more devices with the same functionality in existing branches, thereby improving overall efficiency.”

Nedbank said its ATM footprint will remain broadly stable in 2026, with adjustments based on usage patterns and demand for cash services.

“We constantly assess device usage, ensuring we provide clients with access to cash where they need it most,” the bank said.

“Low-use and unprofitable ATMs will be relocated or rationalised as clients continue shifting to digital, ensuring access to cash where it is needed while redeploying capacity to growth opportunities.”

Absa said it is not disclosing specific ATM expansion or reduction plans for 2026. It said its network strategy is continuously reviewed using customer behaviour data and broader banking trends.

The bank said ATMs remain important tools for financial inclusion, supported by other self-service devices such as bulk cash deposit systems and cash dispensing solutions.

Capitec said it could not provide details on its ATM rollout plans due to a closed period ahead of its annual results announcement on 22 April 2026.

While ATM numbers have declined in recent years, banks appear to be shifting focus from expansion to modernisation, automation, and integration with retail cash access points.

The trend reflects a broader transition in South Africa’s banking sector, where digital payments are growing but cash remains widely used, particularly in lower income and informal segments of the economy.

Ruth First (South Africa – historical)

Most Impactful Work: Her extensive coverage of anti-apartheid movements and her books like 117 Days.

Short Bio: A formidable anti-apartheid activist and journalist, Ruth First was a prominent figure in South African media during the 1940s and 1950s. She edited several progressive newspapers and her work consistently exposed the injustices of the apartheid system. She was assassinated by South African government forces in 1982.

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