Kiwibank has removed the ATM from outside its Picton branch in Mariners Mall because of low use.
Picton resident Heather Hopkins says this leaves customers having to either share their account information in the Post Shop or pay withdrawal fees for using another bank's ATM.
Mrs Hopkins, a superannuant, said she felt uncomfortable having to share her account details with a Kiwibank teller in front of people in the Post Shop in the mall on High St but was apprehensive about being forced to pay withdrawal fees to use the nearby BNZ ATM or shops.
"I came out with screeds of paperwork, receipts with my bank balance on them - I don't want to go through my accounts with everyone lined up in the shop behind me.
"Imagine everyone needing to get money two weeks before Christmas, or the early morning shift workers, what will they do when the queues are long or the shop is closed?
"The Shell [petrol station] across the road, the supermarket and the Four Square aren't going to want to carry more money to serve all of Kiwibank's customers just because the bank got rid of the machine.
"What the devil are Kiwibank doing?
"It's a sign of the times, we're using the ATMs, but we don't need it to be a personal approach."
Communications manager Bruce Thompson said the ATM had been removed from outside the Picton branch because of low use as people were increasingly choosing to buy things with their eftpos card instead of cash, he said.
"It was a very low use machine and because of its location, it's quite expensive to service. We needed to send people from outside the area to replace the funds and carry out audits.
"There's also been a change in customer behaviour, people are using ATMs less. The younger generation use eftpos for everything and very few carry cash."
Mr Thompson said Kiwibank never liked making commercial decisions that inconvenienced its customers but it had to make decisions that make economic sense. "We're in the process of rationalising our network and we've got a number of machines around the country that are seldom used."
What is the best time for the Santa Parade in Blenheim?Related story: Blenheim 'buzzing' with festive cheer