Africa-Press – South-Africa. Standard Bank has opened 234 cashless branches in South Africa, which is up from five in 2020, as clients continue to switch to digital transaction channels.
This switch has enabled the bank to move a significant proportion of its cash transactions to ATMs, reducing its cash-handling costs. Around a third of all the bank’s branches in South Africa are now cashless.
The move of cash transactions to ATMs also enables the bank to shrink the size of its individual branches, making its vast real estate portfolio more efficient.
As a result, the bank is able to maintain the same points of presence network at a smaller cost and upskill branch employees to be able to handle more complex transactions.
In response to questions from Daily Investor, Standard Bank revealed the number of cashless branches in South Africa and how they have been received by customers.
First revealed by CFO Arno Daehnke in August 2025, the financial benefit of the branches has been made clear, with it reducing the bank’s operating costs.
Nearly 90% of the bank’s cash deposits are now received via non-branch channels, with 97% of withdrawals being made outside of the network.
“Our cashless branch strategy ensures we are investing where it matters most – in convenience, expertise, and better service, in locations closer to our customers,” Standard Bank’s Kabelo Makeke said.
Crucially, these cashless branches are coupled with the bank’s new ATMs to process cash transactions and meet the requirements of customers.
“Branches, which offer full cash services, are still relevant in various areas and are determined and supported by increasing demand and usage of the same services,” the bank said.
“Where the demand for branch cash is low and has reduced to low levels over time, we then use the opportunity consolidate, integrate and convert such branches to be cashless and supported by ATMs.”
Standard Bank was careful to say that cash remains key to its customers and its service offering, with it looking to improve accessibility in a cost-effective way.
It also noted that the reduction in cash handling in branches is part of efforts to improve the safety and security of its customers and staff.
Full-service branches are a dying breed
Nedbank CFO Michael Davis
This is part of a broader trend from banks, with full-service branches becoming an increasingly rare occurrence, limited to major shopping malls in population centres.
These branches are also changing significantly, with banks looking to upskill staff to be able to handle more complex transactions, offer financial advice, and increasingly distribute insurance products.
This means these branches will never fully disappear from South Africa, but rather will be reconfigured to better serve clients in particular areas.
Former FNB CEO Harry Kellan explained to Daily Investor that a physical presence in some form is critical to being a full-service bank in South Africa.
“We need to ensure that we serve communities where they are and as effectively as we can. If that means it is an agent we can have in that area, or an ATM, or a Pick n Pay kiosk, we will do it,” Kellan said.
“If the volumes are much bigger and clients demand more sophisticated services, then we will open a branch.”
Nedbank CFO Mike Davis echoed these sentiments, telling Daily INvestor that banks will always need a physical presence to offer a wide range of services.
“Having said that, what you have seen Nedbank do is retain its points of presence, but reduce the size of its footprint,” Davis said.
“If you go back over the years, you will see that every branch and every point of presence was roughly the same size and offered the same services.”
Banks are also increasingly partnering with retailers to expand their physical reach without investing in developing their own real estate.
FNB has a prominent partnership with Pick n Pay, while Nedbank is closely partnered with Boxer. Both banks offer basic branch functions from in-store kiosks.
“If we have a point of presence with a retailer like Boxer, it is manned by Nedbank staff, but it is very simple in terms of its value offering or proposition,” Davis said.
“On the other hand, if you go into Sandton City, you will see a huge branch offering everything from transactional banking to stockbroking, asset management, lending, and deposit-taking.”
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