Last week, NZCU South announced the closure of its Lawrence branch - which opened each Tuesday, Thursday and Friday - and the redundancies of the bank's three employees.
Clutha Mayor Bryan Cadogan said he was "gutted" with the union's decision to close the bank. He hoped NZCU South chief executive Andrew Leys saw Lawrence's passion for its retention.
"Today, we heard the harsh reality of a business that's struggling to make ends meet. It's time to love and protect what we've got."
He said the Clutha District Council, which owned the credit union building, had been putting as many options as possible before NZCU South.
"This isn't an easy time," Mr Cadogan said. "This is not the only business on the street that is looking at its future."
Lawrence-Tuapeka councillor Geoff Blackmore said he did not think the bank could be saved, but would keep trying to retain it.
"They've supplied our town for 22 years when no other bank would. Think about the fact they've been here for 22 years and have given us good service." Mr Leys said the credit union could no longer afford to keep operating the branch.
"We came when other banks walked away.
"We're already three days a week and people are already choosing not to bank with us.
"I don't want to hold my hand out to the council any more than I want to hold a gun to the community's head. I know the rail [cycle] trail is coming but the credit union is not going to make money from people coming through."
One man said that by the credit union pulling out of the town, it was holding a gun to the community's head.
Others questioned why the credit union had spent money upgrading the branch in Lawrence and installing an ATM, only to leave the area.
The protest was organised by First Union, which represents some of the 17 NZCU South staff to be made redundant around the South Island.
Branches in Hokitika and Westport will also close and two branches will be merged in both Christchurch and Invercargill.
First Union organiser Ken Young said the Lawrence protest was a chance for the community to get some answers.
