In recent years, South African banks have significantly decreased their ATM networks, raising concerns about financial inclusion for cash-dependent populations.
Trends in ATM Closures
According to a MyBroadband report, leading South African banks such as Standard Bank, Absa, Nedbank, and First National Bank have closed about 8,345 ATMs in the past five years. Standard Bank lost 3,759 ATMs, Absa cut 3,518, FNB has 1,010 fewer, and Nedbank has reduced its count by 58. The decline in ATMs is part of a broader trend of reducing physical banking infrastructure.
Impact on Financial Inclusion
The closure of ATMs poses significant challenges to financial inclusion, especially for rural and low-income communities that rely on cash. World Bank data indicates a decrease in South Africa's ATM count from 33,171 in 2019 to approximately 28,967 by 2023. Absa's Executive Director Tshiwela Mhlantla noted that the decline in cash interactions and shifts in customer behavior are major drivers of this trend.
Examples from Nigeria
In contrast, Nigeria maintains a stable number of ATMs despite growing digital transaction volumes. The Central Bank of Nigeria emphasizes cash availability in rural areas. Unlike South Africa, where ATM usage is declining, Nigeria has seen a 77% increase in PoS transaction values.
The transition of South Africa's banking sector to digital payments carries risks for financial inclusion, particularly for cash-dependent groups. Nigeria presents a balanced model, maintaining ATM access while promoting digital services.
