Ecobank to End Safe Deposit Box Services Amid Low Demand and Compliance Risks

Finance

Thursday, 03 July 2025 15:12

Ecobank to End Safe Deposit Box Services Amid Low Demand and Compliance Risks

Service to be discontinued in Togo from August 1, reflecting global banking trends.
Rising costs, low profitability and regulatory pressures drive exit.
Customers urged to clear contents by July 31 or items will be transferred to a mandated firm.

Ecobank said it will end its safe deposit box services in Togo effective August 1, becoming the latest lender to withdraw from the costly and increasingly marginal line of business.

In a notice sent to clients, the pan-African bank urged customers to remove their belongings before July 31. Items left uncollected will be handed over to a designated third party.

The move aligns with an international trend as banks grapple with low profitability, high operating costs and heightened regulatory scrutiny over the use of safe deposit boxes.

Historically regarded as a core banking service for affluent clients, safe deposit boxes have become harder to justify financially. The service requires substantial spending on security infrastructure, maintenance and dedicated personnel, yet generates limited revenue.

Legal and compliance risks have also escalated, particularly around liability for theft or damage, and the potential misuse of boxes for money laundering or terrorism financing.

Major international banks—including JPMorgan Chase, HSBC, Barclays and Capital One—have phased out the service in parts of their networks. In Switzerland, despite around 350,000 safe deposit compartments still in use, banks are gradually scaling back and referring clients to specialised providers like Swiss Gold Safe.

In Central Europe, several banks are progressively closing their secure storage services, preferring to divert customers to external providers. In South Africa, Absa wrapped up this service in September 2024, while FNB abandoned it as early as 2017, following a series of security incidents. According to a study cited by the Wall Street Journal, roughly 20% of American banks have wiped out this service over the past six years.

The shift has reached Africa as well. South Africa’s Absa closed its safe deposit boxes in 2024, following FNB’s exit in 2017 after security incidents. Meanwhile, private storage firms have gained traction by offering biometric access and bespoke insurance.

At the same time, the rise of secure digital vaults and a surge in home safe sales—seen in countries like Morocco amid post-Covid distrust—highlight how customer habits are changing.

This article was initially published in French by Fiacre E. Kakpo

Edited in English by Ola Schad Akinocho

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