A move to online banking has been attributed to the closure of Scottsdale's ANZ branch.
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The branch officially closed on March 18 after years of service to the rural community.
The closure described as disappointing by Dorset mayor Greg Howard.
"It's obviously disappointing to lose a bank, especially when that bank doesn't have access through the post office," Mr Howard said.
Mr Howard said people in the area often travelled between 20 and 50 kilometres to access the bank from outlying areas including Bridport and Winnaleah.
The nearest bank branch now is in Kings Meadows - an extra hour's journey.
"All of the clients in the North East who bank now have to go through to Launceston or change banks," Mr Howard said.
"It's a poor decision and typical of big banks - focussed purely on profits and not customer service. They're making the move to online and over the phone - but in rural areas it doesn't work."
Mr Howard said he had heard from community members, organisations and businesses who were changing banks as a result of ANZ's decision.
McIntyre MLC Tania Rattray, who has her office directly opposite from the former branch, said it was disappointing that ANZ had withdrawn services to the rural community.
"We have an older population who still like to use inside bank services and a lot of businesses who still need to be able to deposit cheques," Ms Rattray said.
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"They're almost being treated as second class citizens - internet services in some outlying areas is next to none, to say people can just go online... it's not that easy.
"There's no access to the bank through the post office and now no ATM - I know a number of businesses who are looking at removing all of their banking from the ANZ.
"If they're showing no loyalty why should we."
Ms Rattray also flagged concerns about the branch's four staff members losing their positions.
ANZ district manager Ralph D'Souza said the bank gave Scottsdale customers six months notice about the closure, after long-term trends showed that large numbers of people were moving to banking online.
"Despite many people changing their own banking habits, we recognise the transition will be more challenging for some customers, particularly in certain rural or remote locations," Mr D'Souza said.
Mr D'Souza said customers were personally notified about the closure, and that ANZ made "every effort" to find redeployment opportunities for staff within the bank.
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