Reserve Bank plans shared ATM network to cut cash withdrawal costs

Stephen Grootes speaks to Kokkie Kooyman, a Banking analyst, about the Reserve Bank's plan to establish a cash utility by March next year and finalise plans for white-label ATMs to be rolled out from 2028. Listen to the interview in the audio player below. South Africa’s cash system could be in for a major overhaul as the South African Reserve Bank (SARB) moves to establish a national cash utility by March 2027 and prepare for the rollout of unbranded ATMs from 2028.

The machines, known as white-label ATMs, would allow customers of different banks, including FNB, Capitec, Standard Bank and Absa to withdraw cash from the same network. The SARB’s Cash Smart strategy aims to reduce duplicated infrastructure and the costs of transporting, handling and distributing cash, while improving access in rural and underserved communities.

The country has around 30,000 ATMs, but access and fees vary, particularly for customers using machines outside their own bank’s network. Some withdrawals could become free under the proposed model, although the final fee structure has yet to be confirmed. The success of the plan will depend on whether savings translate into lower costs for consumers without reducing access to cash.

Speaking to Stephen Grootes on The Money Show, banking analyst Kokkie Kooyman says the proposal could change the way South Africans access their money, but most importantly at a cheaper rate. "The main reason is to make ATMs and banking services more accessible to the public. And then we're thinking specifically of the public in smaller areas where it's not profitable for banks to have ATMs." - Kokkie Kooyman, banking analyst "...what the Reserve Bank wants to do is ensure there are banking services available throughout the country, always also to what we call the unbanked.

And so if they do that, then they will want to make sure that it's affordable and that the charges are very low." - Kokkie Kooyman, banking analyst "The main thing about banks having their names with the ATMs is that it's very competitive. So because it's an FNB ATM or Capitec ATM, Capitec or FNB will always make sure that there's money in the ATM.

That it's always full. That it's up and running. Whereas as soon as it's a white label, it's the government who cares about that.

And governments are not very good at being competitive." - Kokkie Kooyman, banking analyst Scroll to the top of the article to listen to the full interview.