A leader of a Condobolin community service says elderly customers will feel the brunt when Bendigo Bank closes their local agency from October this year.

The agency is based at the community-run Lachlan and Western Regional Services (LWRS) building and, according to LWRS Executive Officer Julie Kempton, is used by older residents who don't have cards and don't trust automated teller machines (ATMs).

"They come in and just draw out cash, which is possibly not the most ideal thing, but that's the way they like to do it," Ms Kempton said.

"They'll have to either ring Hillston [the next closest branch after the closure] or get on the internet and download the forms and do this stuff themselves, and sometimes it can be pretty daunting or complicated and you've got to supply ID.

"A lot of people don't have computers at home, or printers.

"I just think that it's going to make the job a lot more difficult if there's not these little agencies to help them."

Post offices are increasingly filling to gap left by bank closures in rural communities.

The nearby Lake Cargelligo agency will also close, along with those in Cowra, Grenfell and Crookwell.

The Victoria-based bank said on 22 July that increasing costs and compliance obligations, and a decline in business activity, have led them to close their agency network.

Besides Bendigo, Commonwealth Bank (CommBank) and National Bank of Australia (NAB) have branches in Condobolin, although neither operates for full business hours.

CommBank also runs a branch in Lake Cargelligo, while NAB closed their local shop in August 2023.

Condobolin Local Post Office owner Susan Bennett said the closure will make her business "considerably busier" as Bendigo customers turn to them for in-person banking.

"I can see down the track that we'll have to probably provide one counter designated for banking," Ms Bennett said.

"It'll help the post office, but it'll make it hard for the customers."

Post offices can provide basic banking services like depositing and withdrawing cash within specified limits, although they generally require a bank card.

Around 36 per cent of regional bank branches have closed in Australia since 2017, according to the federal government.

The four major banks struck a deal announced in February this year to keep regional outlets open until 2027.

Bendigo Bank was not involved in the moratorium on branch closures.