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The Citizen
09-05-2025
- Business
- The Citizen
Do you still need cash? Banks closing ATMs, except Capitec
Those who earn less than R750 000 per annum have traditionally relied more on cash. The world is moving towards doing everything digitally, from shopping to attending meetings, paying bills, taking out loans and even consulting a doctor. This is no different in South Africa. Even many fast-food stores, such as KFC, McDonald's and Burger King, have transitioned to self-service machines that only accept bank cards or vouchers. If most of the things consumers need money for can be paid without having physical money in hand, is there still a need for automated teller machines (ATMS)? Based on the information gathered by The Citizen from Capitec, Absa, FNB and Standard Bank, the decision to keep ATMs is influenced by customer behaviour, location and how much people in certain areas earn. ALSO READ: Challenges and opportunities of becoming a cashless society Capitec getting more ATMs Many banks in the country are gradually reducing their ATM footprint nationwide as they observe a rise in digital transactions. However, Capitec told The Citizen it will be doing the opposite. 'We are driven by a simple belief: banking should be transparent, affordable and accessible for every South African. That's why, even as many others scale back, we are continuing to grow our physical presence,' said Francois Viviers, group executive of marketing and communications at Capitec. By end of February 2025, Capitec had more than 8 797 ATMs and cash-accepting devices across the country. Viviers said they are passionate about encouraging digital adoption, but they cannot ignore the fact that millions of South Africans still depend on cash to manage their daily lives. Digital wallets growth He added that for them, it is not about choosing one channel over another; it is about ensuring no one is left behind. 'We are seeing strong momentum in digital usage. As of Tuesday, 13 million of our clients actively use our app and in the past year alone, card payments increased by 18%, totalling more than 2.4 billion transactions. 'E-commerce transactions surged by 47% and more than one million clients now use digital wallets such as Apple Pay, Google Pay and Samsung Pay.' Goal of building a digitally led model However, things are different at Absa. The bank's spokesperson told The Citizen in 2024 it reduced the number of ATMs by 2% to 5 138 due to the shift to digital-first banking transactions. 'This strategic shift supports Absa's long-term goal of building a digitally led, future-ready banking model by allowing us to reallocate resources to platforms that serve a broader range of customer needs with greater efficiency.' The spokesperson added that its approach is data-driven, customer-centric geographic analysis, which considers transaction volumes, customer preferences, crime patterns and the availability of alternative cash access points (such as partner retailers) in each area. ALSO READ: Tap-and-pay becomes more popular among South Africans High digital adoption Absa has observed that in regions with high digital adoption or proximity to alternative cash access points, ATM usage is generally consistently low, which allows it to optimise its operations in these environments. In some locations, Absa has removed ATMs as it enhances partnerships with retail outlets and enable alternative cash access points through cash at the till functionality. 'Over the past few years, particularly since the pandemic, we have seen a consistent decline in ATM usage as more customers embrace digital and card-based transactions. 'Digital transaction volumes have grown by double digits year-on-year, while the demand for cash transactions continues to decline.' The need for cash decreasing Zibu Nqala, CEO for FNB pointspof Presence, told The Citizen it had noticed a significant shift in transactional behaviour among its customers with a decreasing need for cash. For its customers who earn more than R750 000 per annum, cash has historically played a minor role, accounting for only 4% of their total payments. 'This trend has remained consistent, reflecting a preference for digital and card-based transactions,' Nqala said However, those who earn les than R750 000 per annum have traditionally relied more on cash. 'However, this figure has now decreased to 25%, indicating a clear downward trend.' This shift is accompanied by an increased use of cards and real-time payments, due to the growing adoption of digital payment methods. ALSO READ: South Africans move to contactless payments Urban customers Nqala added that FNB sees urban customers migrating to digital payments more aggressively than rural customers. 'That is why we ensure that we have representation for rural customers through our various points of presence and retailer partnerships. We therefore empower our customers by giving them a choice in how they transact, regardless of their preference for cash or digital transactions.' The below year-on-year look at FNB's self-service device (SSD) numbers as of December 2024 helps to paint the picture of how it has reduced its footprint. Three-year view of SSD numbers (December 2024): Device Type 22 Dec 23 Dec 24 Dec Automated Deposit Tellers (ADTs) 2 007 2 102 2 166 ATMs 2 484 2 394 2 319 Retailers 185 183 171 Statement Printing Kiosk 103 101 97 Bulk Deposit Taking 10 10 17 Total 4 789 4 790 4 770 Table: Supplied by FNB 'FNB's decisions on footprint have been primarily driven by local market alignment, customer trends, device economics and the bank's continuous evaluation of device placement,' said Nqala. She added that if FNB removes any devices, it is done with a calculated approach to ensure there are sufficient alternative points of presence in the local markets so that there is no impact on customers. Standard Bank upgrades its ATMs According to Standard Bank's annual integrated report for the year ended 31 December 2024, the bank has reduced its physical branches and in-store kiosks from 1 206 in 2023, to 1 168 in 2024. When it comes to ATMS, it has reduced its footprint from 6 014 in 2023 to 5 562 in 2024. 'Our clients benefit from our extensive network of branches, cost-effective kiosks, ATMs, dedicated call centres and retail partners,' reads the report. NOW READ: Capitec CEO tops banking pay charts — but how do staff salaries compare? A look at how SA's top five banks pay
The Citizen
08-05-2025
- Business
- The Citizen
Capitec CEO tops banking pay charts — but how do staff salaries compare? A look at how SA's top five banks pay
Capitec paid its CEO the highest salary, while Standard Bank leads in average employee pay. The pay gap between executives and ordinary staff members at companies is mind-blowing, as the remuneration for one executive often exceeds the combined salaries of ten staff members. However, given the differences in qualifications, experience, and responsibilities between executives and other staff members, the difference is surely justifiable. But to what degree? According to data obtained by The Citizen from South Africa's top five banks, Capitec paid its CEO the highest annual salary, while Standard Bank offered the highest average pay to its employees. The lowest-earning CEO in the top five banks is from Absa, with more than R6 million per annum, while the lowest-earning employee is from FNB/FirstRand. ALSO READ: From Standard Bank deputy CEO to Absa CEO: What Kenny Fihla's salary could look like How are CEOs and staff salaries set? The salaries of a CEO and a staff member are set in different ways. A CEO's salary is typically set by the board of directors, which oversees the company's strategic direction and governance. The board assess the CEO's performance and sets remuneration in alignment with company goals and values, often consulting with external experts and benchmarking against similar companies. The board also considers factors such as the CEO's experience, the company's size and growth, and key performance metrics. The remuneration usually includes a fixed yearly salary, benefits, performance-based bonuses, and shares. Ordinary staff members' salaries are typically set according to their job position, qualifications, experience, market benchmarking, and the company's size. Staff members' remuneration does not usually include significant benefits, bonuses, or shares. Capitec CEO highest paid in banking Francois Viviers, Group Executive of Marketing and Communications at Capitec told The Citizen 62% of their employees earn between R250 000 and R500 000 annually. The bank did not specify which job positions are included in the 62% and which are not. But Viviers said this is an increase of 18% from 2021, where 9% of their employees were earning below R180 000 annually. According to the bank's financial results for the year ending 28 February 2025, its outgoing CEO Gerrie Fourie's annual salary and provident fund is over R18 million, with benefits worth R118 000. When including short and long-term incentives, his total cost to company for the year was over R104 million. ALSO READ: Pay gap: These CEOs earn on average 597 times what lowest paid workers earn FirstRand average salary for employees lowest Donald Khumalo, chief people officer at FNB told The Citizen from 1 August 2024, its parent company, FirstRand increased the minimum wage for banking roles to R215 000 per annum, and R185 000 per annum for non-banking roles. He added that the bank is set to announce salary increases on 11 September 2025 in line with their annual reporting cycle. FirstRand Group has a complement of 39 496 in South Africa. According to the latest available remuneration report, which covered the year ended 30 June 2024, FirstRand CEO Mary Vilakazi, who took office on 1 April 2024, received a total guaranteed remuneration of R9.4 million. This included a cash package of R8.9 million, retirement contributions of R187 000, and other allowances of R242 000. Meanwhile, FNB's CEO, Harry Kellan, received guaranteed remuneration of R9.4 million. This included a cash package of R9 million, retirement contributions of R74 000, and other allowances of R266 000. Lowest-earning CEO in banking An Absa spokesperson told The Citizen the lowest cost of company for their ordinary staff member was increased to R250 000 in April 2025. Absa said a person who would get this amount is someone in an entry-level, junior teller, junior customer services officer, junior sales consultant. Absa's staff salaries for 2024 were R26 billion, with bonuses amounting to R3 billion, and training costs of R524 million. As of 31 December 2024, the bank had 36 779 employees, 26 542 of whom are employed in South Africa, 10 037 by Absa Regional Operations (ARO), and the rest internationally. Its outgoing CEO, Charles Russon received total remuneration of R35 472 245 in 2024. From that amount, more than R6 million was for his salary, R245 940 went to medical aid, retirement benefits cost R196 856, and other employee benefits for R72 606. The rest of the remuneration includes a cash award of R7 250 000 and a deferred share award of R6 250 000. He received R13 500 000 for total short-term incentives, while the face value of the long-term incentive award (on-target award) was R15 000 000. ALSO READ: Absa and Standard Bank raised their minimum salaries for 2025 – here's the new pay Highest paid employees in banking Standard Bank's remuneration report revealed that its lowest employee will earn R258 390 per annum, which is an increase from R244 920. It did not specify which role this would be. The bank spent R27 billion on staff salaries and wages, and R1.5 billion on pension and other post-employment benefits in 2024. CEO Sim Tshabalala walked away with more than R89 million in remuneration. Out of the R89 million, his annual salary cost the bank more than R10 million. The remaining amount was shared between employer retirement contributions, benefits and allowances, cash incentives, deferred incentives, the Performance Reward Plan (PRP) and the Nominal dividend on PRP award vesting. How much is Nedbank paying? Nedbank said its lowest-paid full-time permanent employees earned R225 000 a year (R18 750 a month) in 2024, but the bank said this would increase to R240 000 (R20 000 a month) in 2025. It spent more than R22 billion in 2024 on staff salaries. Jason Quinn, the CEO of Nedbank, received a total awarded remuneration of R106 million, with a guaranteed salary of R6 million. The guaranteed remuneration includes the cash portion of the package, other benefits, and a defined-contribution retirement fund. The remaining funds are divided between two cash performance incentives: one paid in cash and the other in shares. NOW READ: Here's how much the CEOs of SA's largest retailers are paid
IOL News
25-04-2025
- Business
- IOL News
Simple and affordable: Capitec disrupts bank fees
Capitec is making banking even simpler and more affordable in 2025 with a groundbreaking new fee structure. Capitec, South Africa's leading digital bank, has launched a new, simplified fee structure for 2025. The revised fees make banking more affordable and accessible for clients. By reducing costs for key services, Capitec continues its commitment to financial inclusion. "By consolidating our fees into clear, simple tiers and reducing costs for essential services like debit orders and immediate payments, we're making it easier for South Africans to understand and manage their banking fees," says Francois Viviers, Group Executive: Marketing and Communications at Capitec. Back to basics: Keeping it simple More than 30 pricing points have been streamlined into five key fees: R1, R2, R3, R6 and R10. R1: Payments between Capitec accounts, including Capitec Pay Payments between Capitec accounts, including Capitec Pay R2: Payments to other banks using EFT or PayShap Payments to other banks using EFT or PayShap R3: Debit orders Debit orders R6: Immediate payments to any bank in SA Immediate payments to any bank in SA R10: Cash withdrawals per R1 000 at Capitec or other banks' ATMs Another industry first: Same fees for personal and business banking Business banking clients will benefit from the same affordable transaction rates as personal banking clients, reinforcing the bank's commitment to fostering growth for entrepreneurs and small businesses. A notable difference is the monthly fee: personal banking remains R7.50, while business banking has a monthly fee of R50 and requires a minimum balance of R150. Business account holders also receive personalised support and access to a dedicated relationship suite with 24/7 availability. Viviers adds, "Traditional banking is complex and expensive, often at the expense of most South Africans. We believe pricing should be affordable, simple, and transparent so that our clients know exactly what they pay and what they get. This philosophy extends across our entire product range – from everyday banking to insurance and Capitec Connect. By maintaining competitive premiums on our insurance products and offering affordable mobile data rates, we ensure that comprehensive financial services remain within reach for all South Africans." Reducing costs with smart tech Capitec's groundbreaking pricing structure is also the result of continued investment in innovation. By leveraging cloud computing solutions, particularly through Amazon Web Services (AWS), the bank has improved efficiency, strengthened system resilience and accelerated service delivery. These advancements have enabled Capitec to cut costs and pass the savings onto its clients. Supporting economic growth through financial inclusion Capitec's initiative aligns with SARB's Vision 2025, which aims to enhance financial inclusion by making digital payments more accessible, secure and efficient. By reducing costs and simplifying banking, Capitec is actively contributing to broader economic empowerment. "When more South Africans and businesses have access to affordable banking services, it creates a ripple effect throughout the economy. Our simplified fee structure is more than just pricing – it's about removing barriers to financial services and fostering economic growth for all South Africans," concludes Viviers. For more details on Capitec's 2025 banking fees and services, visit
