South Africa’s Largest Banks Go Cashless: What It Means for Customers and the Economy.

South Africa’s leading financial institutions, Standard Bank and Absa, are accelerating their transition from traditional cash-heavy branches to digital-first banking models. The move reflects both changing customer behaviour and the banks’ strategic efforts to improve efficiency and modernise services.

Standard Bank has announced plans to convert more of its branches into cashless locations throughout 2026. The bank cited declining use of in-branch cash services and a growing preference for digital banking as primary reasons for the shift. While cash services will remain available at centralised hubs and through ATMs, the branch redesign will prioritise advisory services, self-service kiosks, and mobile banking support to meet evolving customer needs. Absa is implementing a similar approach, reducing the number of branches focused on cash transactions and increasing the availability of digital channels for account management, payments, and financial advisory services.

The transition is driven by a combination of customer demand and operational efficiency. Digital payments, mobile banking, and online transaction platforms have grown substantially, particularly in urban areas. By reducing cash-handling infrastructure, banks can lower operational costs, improve service speed, and redirect resources to technology-driven services. The shift also aligns with broader efforts by the South African Reserve Bank to encourage electronic payments and reduce reliance on cash in the economy.

The effects of this transition are significant. Urban and tech-savvy customers are likely to benefit from faster transactions, improved convenience, and access to modern financial tools, such as QR payments and mobile wallets. However, financial inclusion advocates warn that the shift must be managed carefully to avoid excluding underbanked populations, especially in rural and low-income communities where cash is still a primary medium of exchange. Without proper planning, rapid cashless implementation could create barriers for vulnerable groups.

Overall, the move by Standard Bank and Absa reflects the broader trend toward digital banking across Africa. The success of this strategy will depend on how effectively the banks balance innovation with accessibility, ensuring that all customers can benefit from the digital transition while still maintaining access to essential cash services.