If you feel like you can’t find an ATM in South Africa, you’re not alone. The Outlier recently did an investigation into this phenomenon and what it found is startling, reports Daily Investor. The ATM in South Africa has become a dying breed in the last five years. But why?
South Africa’s major banks – ABSA, FNB, Nedbank and Standard Bank – have been closing down ATMs at a rate of knots. ABSA says the reason for this is customers’ adoption of eCommerce and digital banking. But is this not shortsighted in South Africa where the majority of informal traders still consider ‘cash is king’ and trade in nothing but?
WHAT HAPPENED TO THE ATM IN SOUTH AFRICA?
Nevertheless, ABSA reports it has closed 3 500 ATMs since COVID-19. In fact, the pandemic is something to consider here, because the majority of closures took place between 2020 and 2022. Another major reason is violent crime like ATM bombings and the like. Standard Bank says it has closed more than 3 000 machines in South Africa, slashing its number from 9 321 to 6 232 in five years. FNB has culled nearly 1 000 ATMs over that time frame, from 5 780 to 4 790 countrywide.
This is sad news for Mzansi as the banks explain that ATMs are being updated with new technology all the time. The ATM in South Africa is barely recognisable to those of a decade ago, thanks to significantly improved speed and transaction options. They have a higher capacity, more client services, and boast real-time validation and recycling of bulk cash, say the banks. Not to mention the unique ability to email or print official bank documents like statements and confirmations.
GOOD NEWS FOR ATMS
There is some good news for the ATM in South Africa, though. While many have been removed or relocated out of dangerous/low transacting areas, deposits at ATMs have in fact increased in the last five years. This is presumably due to the closure of bank branches and retrenchment of in-branch staff post COVID-19.
Likewise, according to reports, Capitec Bank has actually increased its ATM footprint in the last five years, from 5 011 in 2019 to 8 382 in 2024. Similarly, anyone with a TymeBank account has access to more than 15 000 till points at major retailers to access various cash services. Yet another reason the ATM in South Africa runs the risk of becoming an endangered species. But we want to know what you think …
DO YOU USE AN ATM OR PREFER DIGITAL BANKING ONLY?
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