In the past 4-year South Africa banks have drastically reduced ATMs and branches. This trend continues as most of banks around the world started to reduce their ATMs and branches preparing for evolutionary step to era of digital cash in one-word digital banking. The dominance of digital banking has boosted banks income and reduction expenses. This digital trend will continue rapidly because of the convenience and efficiency of digital platform.

The increase in online transaction in 2024 has risen the digitalization of banking products. Standard Bank one of South Africa’s largest financial institution stated a 30% increase in online transaction of 1.5 billion digital transaction using their platform. Nedbank in 2019 listed more than 700 branches in its portfolio, but in 2024 they dropped to 500. 

This surge in digital banking activity has been a convenient for customer because of 24/7 access to financial services. The average digital transaction per customer has increased from average 6,000 in 2022 to 12,000 in 2024. Although almost everyone uses cash as a payment method, for now it represents only 21% of the total payment value.

The central bank of South Africa stated in their document that cash is a not good choice, and they suggest a use of digital transaction.

Online platforms, mobile apps and other digital services have become the primary channels through which customers manage their financial needs.  More and more customers embrace online platforms for transaction that’s why personal banking steadily decreases. That’s a good reason for banks to significantly invest in their digital infrastructure. But for many South Africans, visiting a branch to speak with a bank representative remains an essential part of managing their finances.

The digital transformation is in the hands on people. For now, banks are adjusting their strategy and needs to consumer. That’s why Kabelo Makeke, Head of Personal & Private Banking at Standard Bank South Africa said, “Our goal is to provide our customers with the best possible banking experience, whether they engage with us digitally or in person”.