Standard Bank leads branch closures as South Africa banking goes digital

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Johannesburg – June 2025

South Africa’s leading commercial banks are continuing to scale back their physical branch presence across the country as digital banking channels become increasingly dominant. A recent assessment reveals that in 2024, the country’s top five legacy banks recorded a net loss of nine branches, with Standard Bank leading the downsizing trend.

AfricaHeadline Reports Team
editorial@africaheadline.com 

According to data compiled by BusinessTech, based on the annual financial reports of Standard Bank, Absa, Nedbank, Capitec, and interim results from FirstRand, the number of physical branches dropped from 3,299 in December 2023 to 3,290 by December 2024.

While the net decrease may appear marginal, the structural shift is noteworthy. Only two banks expanded their networks — FirstRand added 9 branches and Capitec 14 — while Nedbank, Absa and Standard Bank moved in the opposite direction. Standard Bank alone slashed 26 points of presence.

The group explained its decision as part of a long-term strategy to migrate clients to digital platforms. Since 2017, it has cut its physical branch network by 42%, leading to cost savings of R768 million. At the same time, it has ramped up investment in low-cost kiosks as alternative service points.

A closer look at the group’s 2024 financials reveals that while Standard Bank reported 652 “points of representation” in 2023, comprising 485 full branches and 167 kiosks, it increased full branches to 486 in 2024, but reduced kiosks by 27, resulting in a net loss of 26 total service points.

“We continue to optimise our infrastructure by reducing branch size and ATM numbers, while expanding access points,” the bank said. “We acknowledge that many of our clients still require face-to-face interactions, especially for complex services.”

Nedbank is following a similar path, having closed four branches in 2024. Since 2020, it has reduced its total branch floor space by 72,000 square metres, leaving it with 118,000 square metres in 2024. The group links this spatial shift directly to the growth of digital banking channels.

“We expect these trends to persist as manual in-branch and ATM transactions decline in favour of digital,” Nedbank stated.

In contrast, Capitec is moving against the grain. With 14 new branches added, the bank is doubling down on physical expansion to serve its customers more effectively and tap into new markets.

“Transacting is handled via in-branch self-service terminals, while our consultants play a key role in product adoption and client growth,” the group said.

Capitec’s expansion strategy is also part of a broader ambition to serve underrepresented segments such as South Africa’s informal economy. The bank sees high growth potential in delivering credit, insurance, payment services, and financial education to this emerging market.

“We have a large branch network in the right locations and plan to leverage this to address unmet needs,” it noted.

The ongoing evolution in South Africa’s retail banking sector underscores a deeper transformation in how financial institutions interact with clients, balancing cost-efficiency and accessibility, while recognising the continued relevance of in-person services in strategic contexts.

By AfricaHeadline Newsroom – Business & Finance
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