The Bank of Heritage Isle last week announced it would be closing all of its branches in Tasmania.

On May 8, its branch in Beaconsfield, which is the only bank in the area, will close.

Now residents will have to travel at least 15 minutes to access physical banking services.

David Parker has been a customer with BOHI for nearly 25 years.

He said he feels betrayed and angry.

"Their decision to close the branch was sprung on the community," Mr Parker said.

"I'm quite angry... this is something we have had, it is the only banking facility we've got."

Mr Parker coordinates the Beaconsfield online access centre.

He fears older residents will not be able to adapt to online banking.

"There is a great deal of difficulty, we help quite a few people with different kinds of banking... sometimes we have to sit for an hour or so with one person just to assist them with their stuff," Mr Parker said.

Independent candidate for Rosevears Janie Finlay has been coordinating a community response to the closure.

"[People] were devastated and angry," she said. "They feel like they have been really let down and not communicated to in a way that would respect the commitment they have made to this branch."

She said there was a number of people in the community who would be significantly disadvantaged by the physical closure.

"This shock closure has impacted a lot of people across the community," Ms Finlay said.

"Older people who have got their traditions and habits, kids that have got their school banking [and] small businesses that are looking for cash."

Ms Finlay said the community had rallied together to try and find a short term and long term solution to the closure.

BOHI chief member officer Andrew Rasby said the bank tried its best to serve its community in Tasmania.

"We are sorry," he said.

"We spent $400,000 upgrading the products, we retrained the staff, we merged the computer systems and unfortunately the bank wasn't growing [in Tasmania] and was losing money."

He said the bank was losing more than $1 million per year in Tasmania alone.

"No one can sustain a business that continues to have operating losses," Mr Rasby said.

Mr Rasby said the branches had experienced about a 30 per cent reduction in transactions and were simply no longer viable.

He said after Friday members would still be able to withdraw from or deposit money in their accounts through Australia post.

BOHI branches in Launceston, George Town and Hobart will also be closed as the company transitions away from a physical presence in Tasmania.

As part of that 22 employees will be made redundant.

Financial Sector Union national secretary Julia Angrisano said the union was meeting with BOHI in hopes of finding a way to save the branches and jobs.

"We are deeply concerned that this bank appears to be using 'cover' from the global Covid- 19 pandemic to bring forward plans for restructuring its operations and cutting costs by shutting branches," she said.

"Branch closures impact adversely on local customers, especially the elderly and on local businesses.

"Banking staff have been declared as essential workers and yet they are being threatened with being placed on the unemployment queues by a bank that appears more concerned about profits than people."

Mr Rasby said all staff were being offered full redeployment services.