Rural communities are desperately searching for ways to keep banks from shutting up shop in their towns.

Banks are blaming a decline in foot traffic and an increase in online activity for proposals to close or reduce services.

Kiwibank has flagged it may close seven branches including Matamata, Waihi, Balclutha, Gisborne and Waipukurau.

The bank says it's responding to customer preference. Branch visitor numbers have not recovered since more customers began using online services during the 2020 lockdown.

ASB planned to reduce hours at Matamata, Te Awamutu and Cambridge and close its Morrinsville branch in March.

ANZ was reducing its Te Kūiti branch from a five-day operation to Tuesday to Thursday, from April 21.

Waikato Federated Farmers President Jacqui Hahn, who farms near Te Kūiti, says it's a double blow for her rural community.

Cheques have already been removed as a method for people to bank and poor internet service in rural areas makes it difficult for people to connect with their banks online.

Reducing the ANZ branch service in Te Kūiti will make it even more challenging for people to access banking services.

'I do know that there has been a massive reduction in foot traffic, it is understandable that banks would look at reducing face-to-face interactions.

'However, having dealt with another bank that has reduced hours, the level of service falls dramatically and I believe the bank that keeps that face-to-face local service is more likely to benefit from more customers.”

Hahn says agribusiness bankers do make visits more often than in the past.

'But what about new staff, teenagers opening accounts, power of attorney changes, clubs and societies changes in signatories?”

Hahn says her solicitor is considering moving to a main centre if banks exited the community.

'They have to meet face-to-face and their time is very expensive, stripping more jobs and desirability out of townships.

'Overall, I am not impressed with the banking bodies and their shareholders' attitudes towards the communities they have greatly profited from.”

Matamata-Piako Mayor Ash Tanner says he's baffled to understand why banks are moving out of town.

'They are usually quite profitable businesses and it has a huge impact on our communities.

'It's not just a bank. For some of our elderly people, it's also a social thing. They interact with people and they have a very good relationship with staff.

'It's about personal connections and people will miss that.”

Matamata resident Pam Chubb wrote to Kiwibank suggesting it share premises with another shop so it could remain open in the town.

She says the population of Matamata is growing, businesses are expanding and it would be 'foolish” to close.

'Also there must be consideration given to the number of, and proposed, care homes where older clients need banking facilities especially now that cheques are gone.

'They cannot do online banking for various reasons such as inability to grasp such procedures or health reasons such as arthritic hands that make dialling and texting beyond their capability.”

Kiwibank says it's mindful the proposal to close the seven branches would create uncertainty.

It's seeking feedback to hear how customers were using the branches and what support they might need to access services.

-Stuff/ Lawrence Gullery and Chloe Blommerde.