A Westpac spokesman said more customers were doing their banking on the phone or online and fewer customers were visiting its branch in Main South Rd.
"We will be closing this branch on Wednesday, October 23.''
Westpac would concentrate its services at other nearby branches, such as South Dunedin, he said.
No-one would lose their job as a result of the branch closure, as its staff would be redeployed to other branches.
The automated teller machine on an exterior wall of the branch would be removed.
Westpac customers could use the Kiwibank ATM in Green Island for free, he said.
Greater Green Island Community Network chairman and Green Island School principal Steve Hayward said he asked Westpac to keep the branch open and its impending closure was "sad''.
"I feel for the elderly in our community.''
A branch in Green Island was much easier for the elderly in the greater Green Island area to access than the branch in South Dunedin.
A direct bus route between Green Island and South Dunedin was stopped when the bus hub in central Dunedin was established.
The branch would be a loss for the many businesses in Green Island who used it to bank cash.
Greater Green Island Business Association chairman and Green Island Night `n Day owner Antony Duthie said he was disappointed Westpac was closing the branch because it was "well used'' by the community in the Greater Green Island area.
"I thought there would have been enough patronage to keep it going.''
The elderly would be hit the hardest because they found it harder to access online banking or get to other branches in Dunedin.
The branch closure was bucking a trend of many new businesses opening in Green Island, such as NPD service station and Dunedin Truck Servicing Ltd.
"Green Island is not the quiet little place people think it is.''
Colin Weatherall, former Dunedin city councillor for the Saddle Hill/Green Island ward, said he has been a Westpac customer for more than 45 years and regularly used the branch - for personal banking and for business, as a Brighton Gala Day co-organiser.
The branch would be missed, especially by the "senior community''.
He preferred to talk to bank staff in person rather than online or by phone.
"I'm passionate about people being able to do business across a counter.''
He was pleased no staff had lost their jobs - "that's a positive'' - but he was disappointed the ATM would be removed.
"It's a machine of convenience and I use it once or twice a week.''
Otago Chamber of Commerce chief executive Dougal McGowan said the closure was a "sign of the times'' as it was costly for any business to keep its doors open, especially when fewer customers were visiting it.
As customers shifted to buying goods and accessing services online, society needed to investigate how to keep "all sectors of the community connected''.
"Whether it's the elderly, or those with accessibility issues - how do we try and meet all of those needs?''
Commitment excludes Green Island
A commitment from the six big New Zealand banks to keep their regional branches open excludes Green Island, says a banking advocacy group.
On September 30, Kiwibank, BNZ, TSB, ANZ, ASB and Westpac announced an agreement to keep open branches outside the six main urban centres.
Westpac is closing its Green Island branch on October 23.
New Zealand Bankers' Association spokesman Philip van Dyk said regional branches were defined as outside the city council boundaries of the major urban centres - Auckland, Tauranga, Hamilton, Wellington, Christchurch and Dunedin.
"So the commitment not to close regional branches excludes Green Island.''
Association chief executive Roger Beaumont said the six banks have agreed to trial "banking hubs'' in four small towns - Twizel, Stoke, Opunake and Martinborough - for a year.
The start dates for each would differ. Each hub would feature a Smart ATM, support staff and online and technology support.
In light of the impending branch closure, many leaders in the greater Green Island area called for a similar hub to be established, or for Westpac to open an agency in the suburb.
Greater Green Island Community Network chairman and Green Island School principal Steve Hayward said a hub or agency could provide services for customers for up to three afternoons a week. Greater Green Island Business Association chairman and Green Island Night `n Day owner Antony Duthie said he hoped Westpac could open an agency between 10am and 3pm on weekdays.
Questions to Westpac from The Star asking if the bank would explore opening a Green Island hub or agency were not answered.
SHAWN.MCAVINUE @thestar.co.nz
