Absa is beginning a phased reduction of cash withdrawal services through its branches in South Africa. Cash will now only be available at 'designated branches' as the bank redirects routine operations to ATMs, self-service devices, and eventually to local businesses acting as banking agents.
The bank announced these changes on Thursday, presenting them as a modernization of its network of branches, ATMs, and self-service devices. However, it did not specify how many of its 574 branches will retain cash services.
Absa reported that over 90% of retail customers have moved routine transactions from branches to self-service channels, and the volume of cash processed in branches and ATMs has decreased by 30% between 2020 and 2025. In 2019, more than half of deposits were processed by tellers, whereas now about 90% of deposits go through ATMs and self-service devices.
Peter van Idem, Executive Managing Director for Integrated Channels, stated in a release: 'Customers bank differently, and our front line in branches must adapt to these changes. At the same time, cash remains important for many people and businesses, especially where other options are limited.'
Absa emphasized that its branch network has expanded: from 551 points in 2021 to the current 574, and that its intention 'is not to reduce physical presence.'
However, the service structure is changing. In an interim results presentation in August, Absa reported increasing the number of small 'sales and service' points from 122 to 215 as of June 2025, because 'we are moving away from traditional full-service branches.' CEO Kenny Fihla called this a change that allows for the elimination of costs that no longer provide value.
Agent Banking Model
Business Times previously reported that traditional Absa branches have shrunk by 18%, totaling 359, which combined with 215 sales and service points gives a total of 574, while the ATM network has decreased by 2% to 4,976. Van Idem told the publication that the bank plans to gradually increase the number of free branches to 456, while Fihla noted that branches dispensing cash are significantly more expensive to operate.
The statement from Thursday indicated that 81 branches have already been converted to a 'consultancy model,' which focuses on providing advice rather than processing transactions. Absa did not explain how this figure relates to the 215 sales and service points.
Before implementing the 'network changes,' Absa stated that it would assess local demand for cash and the availability of alternative options nearby, and would add device capacity if necessary. The bank is also developing an agent banking model that will allow customers, especially in settlements and rural areas, to withdraw and deposit cash at local businesses. Cash will be the starting point, and other services may be added later.