Despite the radical adoption and improvement of digital banking services in South Africa, many of the country’s major banks continue to expand their physical branches.
Capitec, for example, has encouraged digital channel adoption for routine, day-to-day transactions, helping reduce branch queues and improving the capacity for more complex interactions. FNB Points of Presence CEO Zibu Nqala said that the bank’s strategy was to open more efficient, optimally sized branches rather than focusing on sheer branch numbers.
Factors that played a role in closing or consolidating branches included local market conditions, such as declining CBDs, as well as safety and security considerations, especially where Capitec has several alternative branches nearby.