The National Australia Bank (NAB) says reducing banking hours in small branches will save jobs and provide a more "consistent banking experience for customers."

With the opening hours adjustment to 114 smaller regional branches, including in Cobden and Terang, bankers will split their time between over the counter service and digital or phone banking support.

NAB Group Executive Personal Banking Rachel Slade said these branches would be open from 9.30am to 12.30pm for customers and outside of these hours the bankers would support customers by phone and online chat, as well as application processing.

"It is clear the face of banking is changing, especially in the way customers want to interact with us," she said.

"Our branches continue to be a really important part of many local communities, especially for local businesses. On average a quarter of transactions take place between 9.30am and 10.30am in our regional branches. Through this new model we can continue to be there to serve our customers and have meaningful conversations while also adapting to the way our customers are now banking.

"Our colleagues will learn new skills to support customers in new ways, including on the phone and online chat, which presents the opportunity for our bankers to work remotely at times when more of our customers want to do their banking. We have shown this is possible through Covid-19 restrictions with more than 450 bankers trained in new skills to support customers in different ways.

According to NAB, more than 90 per cent of customer interaction was done online or over the phone. Over-the-counter transactions had declined steadily and had reduced by a quarter in the past year.

Tuesday:

A FORMER Corangamite Shire mayor says towns like Terang and Cobden deserve a bank which provides the full suite of financial services.

The National Australia Bank has reduced its hours in the two towns from 10am to 2pm to 9.30am to12.30pm, Monday to Friday.

Former councillor Chris O'Connor said since Terang's Commonwealth Bank and ANZ Bank branches closed, the Terang Post Office had done a great job in providing banking services to the community.

"But a town like Terang needs a full banking service," he said.

Terang businessman Michael Reicha, from Reicha's Drapery, said the reduction of hours affected all businesses in one way or another.

"If they keep reducing hours it does make you question if they'll be here in three years," he said.

"It's a limited service already.

"Moving away from retail, we're lucky to have fantastic medical services, schools and sports facilities.

"A town our size and with the surrounding businesses I think can justify a bank being here. Realistically it doesn't look positive for the future."

Mr Reicha said the more services a town could offer the better chance more people would support the area.

Corangamite councillor Helen Durant said Terang needed a bank which provided full face to face service."There are people who rely on having access to banks and not at specific hours of the day," she said.

Councillor Jo Beard said when bank hours were reduced it caused some concern on the bank's future.

"Banks are an integral part of the community and rural communities deserve a choice," she said.

The Cobden Community Bank continues to operate from 9.30am to 5pm, five days a week.

The National Australia Bank has been contacted for comment.

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