Bendigo Bank customers in the town were informed this week the agency, which is run by the Leitchville and District Development Group, would be shut on April 20.
Only seven transactions a day have been recorded by the branch as the switch to online banking has swelled in the past 12 months.
Leitchville and District Development Group treasurer Michael Walker said the decision had been made by the bank, not the local community.
He said the bank conducted a review of its agencies across the country following the impact of COVID-19.
“It wasn't our call,” Mr Walker said.
“We put every defence up about looking after local communities, but they'd made their decision.
“It's gradually declined over time — or that's the bank's take on it."
Mr Walker said while residents would still be able to do some banking at the post office, there would be an impact on Leitchville's older residents and it wasn't a strong sign for the village.
“It's another business out of town,” he said.
“Cohuna's struggling, the NAB's the only full branch in town with a Bendigo (Bank) agency there.
“Five years ago, Westpac pulled out of Leitchville; a lot of people still bank with them but we hoped (Bendigo Bank) would last longer."
He said the Leitchville and District Development Group was now looking for another tenant for the space the Bendigo Bank used at the group's building.
The library in the building will continue to operate on Tuesday afternoons, with a note on the building "strongly encouraging" patronage to ensure the service can be maintained.
Mr Walker said the library wasn't in any danger of closing, but he "wanted to keep it that way".
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