Kiwibank's decision to close its branch in Waihi confirms that the 'people's bank” is no more, says Coromandel MP Scott Simpson.

Kiwibank has confirmed it will close seven branches - Balclutha, Gisborne, Matamata, Onehunga, The Palms - Christchurch, Waihi and Waipukurau.

The New Zealand-owned bank says the decision is driven by an increase in customers who wanted to operate in a digital world resulting in a significant decline in the number of people visiting branches.

'Kiwibank was created as an alternative to foreign commercial banks,” says Simpson.

'Its brand was that it was owned and run by New Zealanders. There is no mistaking that this week's decision puts pay to that once and for all.”

Simpson says there was a period for public consultation, but he feels this was little more than rubber-stamping a pre-determined decision.

The Waihi branch will close June 4.

Kiwibank says confirmation of the closures follows consultation with its branch teams and feedback from customers and local communities.

General manager of retail Geoff Waller says while much of the feedback accepted that customer preferences had largely shifted to the convenience of digital banking, many expressed concerns on behalf of older and more vulnerable customers.

'Our people in the branch will be working closely with customers to let them know about the different ways they can bank with us, both non-digital and digital,” says Waller.

'Our specialist Digital Angels will continue to provide tailored help to any customer that wants additional support, and we have resources on our website for people to learn at their own pace.

'Through our partnership with Digital Inclusion Alliance Aotearoa, we will also be providing free digital banking workshops in these communities before the branch closes.

'While we know this outcome will be disappointing for some, it does give our people and communities certainty and time to transition.”

Despite Kiwibank's efforts to help customers transition to digital banking, Simpson is not 'satisfied that this will be successful”.

'Customers have already had adequate time to be online but those that haven't taken up that option simply prefer to do their banking in person,” says Simpson.

'This decision removes their ability to choose how they manage their finances.

‘The Waihi community will be rightfully disappointed in this decision and flawed consultation process.

'It's another blow to rural and provincial communities and something that big corporates are doing at pace.”

Kiwibank will be writing to customers ahead of the closure informing them of the support that is being offered.

Confirmed closure dates are as follows:

April 23 - The Palms – Christchurch

April 30 - Balclutha

June 4 - Waihi

June 25 - Waipukurau

June 30 - Gisborne

Dec 3 - Onehunga – Auckland

Dec 8 - Matamata