South Africa branch closures are on the rise again with the closure of a further 91 Standard Bank units. The latest closures are scheduled for the first half of the year with 1,200 jobs at risk. This round of South Africa branch closures reduce Standard’s branch network to 538 outlets. As recently as 2011, the Standard Bank branch network comprised over 700 outlets.
In a statement, Standard says: “The shift in customer behaviour means that our clients are using our branches less. As such, we have re-looked our banking delivery model so it is geared to serve the needs of our customers.”
In 2018 total South Africa branch closures at the big four traditional banks totalled 76 units.
Go deeper with GlobalData
The Standard Bank branch network inched down from 640 to 629 units. Absa closed 34 outlets, reducing its network to 671 outlets. Meantime, First National closed 17 reducing its network to 628. And Nedbank closed 14 resulting in a branch network of 498 outlets.
South Africa branch closures: Capitec bucks the trend
By contrast, Capitec continues to grow its physical footprint. In 2018, Capitec opended 30 branches and now operates 826 outlets. In the last three years alone, Capitec has opened over 150 new branches. Around 330 of Capitec’s branches, mainly in shopping centres, are open seven days a week. Over the same three year period, Capitec customer numbers have grown from 6.2 to 9.9 million customers. All of the South African banks are successfully growing digital banking user numbers.
Digital banking numbers rise
At Capitec, more than 3.7 million customers used its USSD banking channel. In addition, there was a 71% increase in clients using its banking app in 2018 growing numbers to around 3 million. At the same time, Absa mobile banking numbers rise from 950,000 to 1.2 million.
Standard Bank active mobile banking numbers are up by 39% year-on-year contributing to a 98% rise in transactions.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataSouth Africa: largest banks by branches
- Capitec 826
- Absa 671
- First National 628
- Standard Bank 538
- Nedbank 498
