Capitec plans to increase both its branch footprint and branded automated teller machine network in 2026, positioning itself against an industry trend in which established lenders continue to reduce physical infrastructure. The bank intends to record a net gain in branches and ATMs next year, arguing that physical access remains central to its service model despite rising digital adoption.
The strategy runs counter to the direction taken by most major banks in South Africa, which have closed hundreds of branches and decommissioned thousands of ATMs over the past five years as customers shift towards app-based and online banking. Data from South African Reserve Bank publications show that mobile and internet banking transactions have grown by double digits annually since the pandemic, while cash withdrawals have stagnated or declined in value terms. Capitec, however, has expanded its ATM base by about 3,800 units since 2019 and has continued to add branches, making it the only large retail bank with sustained physical growth over that period, alongside modest expansion by First National Bank.
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Capitec currently operates more than 860 branches and around 8,500 branded ATMs nationwide. Its approach combines expansion with relocation, shifting sites towards higher-traffic retail nodes and transport corridors as urban movement patterns change. The bank’s management views this as a way to preserve proximity to customers in lower-income and peri-urban areas where smartphone penetration and data affordability still constrain full digital migration.
With more than 25 million clients, Capitec’s branch strategy is closely tied to financial inclusion objectives. The bank frames its outlets as support centres rather than transaction counters, using them to train customers to navigate digital platforms while still offering assisted services. Industry estimates suggest that roughly 60% of low-income earners still withdraw most of their income in cash, according to Statistics South Africa household finance surveys, reinforcing the economic case for maintaining cash access points even as electronic payments expand.
Capitec has also acknowledged that while it promotes digital banking, it continues to invest in cash infrastructure to accommodate customers who depend on physical money for daily transactions. This dual-track model reflects the uneven pace of digitisation across provinces, with rural and township economies still heavily reliant on cash circulation.
Beyond core banking, Capitec is preparing to integrate government services into selected branches through a partnership with the Department of Home Affairs. The new digital collaboration model, launched in August 2025, links bank systems directly with Home Affairs’ platforms, removing the need for duplicate staffing and equipment that made the earlier pilot model financially inefficient. Capitec, which did not participate in the initial scheme, has joined the updated programme and is rolling it out in phases.
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The bank plans to activate smart identity card services in around 100 branches by mid-2026, expanding to roughly 300 branches by the end of the year. Customers will pay a R10 administrative charge in addition to the standardளம் R140 smart ID fee set by the state. The initiative is intended to turn selected branches into multi-purpose service hubs, aligning banking with public service delivery while generating additional foot traffic.
Capitec’s infrastructure expansion reflects a broader competitive positioning: while rivals reduce physical networks to cut costs, it is seeking differentiation through accessibility. As digital-only banks and fintech platforms grow their market share, Capitec’s model suggests that physical presence can still be commercially viable when aligned with high-volume, low-cost operations and a customer base that spans both connected and cash-dependent segments of the economy.