As Digital Banking Dominates, Standard Bank Transforms its Branches and ATM Network
In response to the fast-paced evolution of the banking landscape, Standard Bank is embracing a digital-first approach to improve customer experience and remain competitive. Like many of South Africa’s traditional banks, Standard Bank has been compelled to adapt to the rise of fintech companies and digital-only banks. These disruptors, coupled with shifting consumer preferences, have accelerated the bank’s focus on digital channels, while it simultaneously restructures its physical footprint.
Kabelo Makeke, head of Personal & Private Banking at Standard Bank South Africa, noted that branch transactions have significantly declined as more customers opt for the convenience, speed, and security of online banking. In the first half of 2024 alone, branch transactions fell by 13%, amounting to around 2.5 million transactions. On the flip side, digital banking has surged, with online transactions rising by 30% to a staggering 1.5 billion transactions, and clients completing an average of 10,400 digital transactions monthly.
Adapting Branches to Meet New Demand
The bank’s response to this dramatic shift includes reducing the physical size of its branches. Over the past five years, Standard Bank has downsized its branch space by 4% annually, trimming down to 239,000 square meters—an area equivalent to eight Ellis Park Rugby Stadiums—without negatively affecting job numbers. Despite this downsizing, the bank has managed to increase the number of its points of representation, which now total 654 across South Africa.
According to Makeke, the bank’s goal is to offer a seamless experience whether customers prefer in-person services or digital channels. “Our customers’ preferences are changing rapidly, and we are committed to meeting their needs in the most efficient and effective ways possible,” he said. This balance between physical and digital presence enables the bank to cater to clients across all touchpoints.
The Evolution of ATMs
Standard Bank is not only shrinking branch spaces but also adjusting its ATM network in response to crime, under-utilization, and digital migration. Over the past five years, the number of ATMs operated by the bank has dropped from 9,321 to 6,232. However, the bank is investing in a new generation of ATMs with advanced technology that improves transaction speeds and adds new features. These include real-time acceptance, validation, and recycling of bulk cash, allowing the bank to manage more clients with fewer machines.
“We are adapting our ATM network to reflect our clients’ changing needs,” Makeke explained. “The new ATMs are strategically placed to enhance customer convenience and security.” Additionally, the bank has been relocating low-performing ATMs to areas where demand is higher, ensuring the network remains accessible to those who need cash services.
Meeting Customer Needs in a New Era
As banks globally navigate the shift from physical to digital banking, Standard Bank’s transformation is an indicator of how traditional financial institutions are adapting to remain relevant. By slashing branch and ATM spaces while investing in digital infrastructure, the bank is positioning itself to cater to the evolving preferences of its clients.
“Whether customers choose to bank digitally or visit a branch, we are committed to providing them with the best possible experience,” said Makeke. With more people opting for digital channels and fewer using traditional cash services, Standard Bank’s ongoing adjustments ensure they are ready for the future of banking.
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Source: Daily Investor
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