Standard Bank has reported a 13% decrease in branch transactions during the first half of the year, with the number of transactions dropping to about 2.5-million.
The reflects a shift in customer behaviour as clients increasingly favour digital banking channels.
In contrast, online transactions have surged by 30%, reaching 1.5-billion during the same period. In a statement on Thursday, Standard Bank said its clients now performed “an average of 10,400 digital transactions each month”, in stark contrast to just 0.017 per month in branches.
ATM interaction has increased 8% to 104-million transactions.
Kabelo Makeke, head of personal and private banking at Standard Bank SA, highlighted the effect of the shift, noting that customer preferences were changing rapidly as technology advanced.
“Our customers’ preferences are changing rapidly, and we are committed to meeting their needs in the most efficient and effective ways possible,” Makeke said.
The bank said that over the past five years it had systematically reduced the average size of its branches, leading to a 4% decrease in its total branch footprint in the past year alone, amounting to 239,000m2.
“In this time, the bank has actively reduced the average square metre size of its branches each year with a minimal impact on jobs,” the bank said.
Standard Bank maintains that this downsizing has occurred without any reduction in the number of banking locations, which remains at 654 across SA, indicating the bank’s commitment to optimising existing space while ensuring accessibility to banking services.
“Our goal is to provide our customers with the best possible banking experience, whether they choose to engage with us digitally or in person,” Makeke said. “By adapting our branch network and enhancing our digital capabilities, we are ensuring that we remain responsive to our customers’ needs and preferences.”
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