The only bank on the Isles of Scilly is set to shut next year.
Situated on the island of St Mary’s, the Lloyds bank will close on 25 April 2022.
The Lloyd’s group came to the decision after reviewing the changes in customer behaviour, showing that the branch was used less often.
For local restaurateur, Phil Moon, the closure comes as a “shock” and would make running his business “more complicated”.
Mr Moon said: “We obviously lost Barclays a couple of years ago and Lloyds became the only bank on the island so we never saw this coming.
“It was a shock, and a bit of an unpleasant one at that, I’m pretty disappointed to be honest; it’s going to affect all of us and businesses especially.”
His restaurant and takeaway business regularly uses the bank for changing stock and for taking cash off the premises for security reasons.
Lloyds Bank said staff will be on hand to advise and support with banking alternatives, including the alternative of a community banker.
A spokesperson added: “A new community banker will be made available to help customers with their everyday banking and customers can also continue to bank locally by visiting the nearby Post Office, which is a short walk away from the branch.”
Mr Moon said using the Post Office would see people “who just want to do bank transactions” having to join the queue for those wanting stamps or postal services.
“It’s just going to slow things down and make things more complicated,” he said.
The Isles of Scilly branch of Lloyds Bank is just one of 48 branches that will close in 2022.