IN A move that's been described as "below the belt,” NAB has announced it will be shutting the Allora branch of its bank in August.

It was one of only two banks in the Southern Downs town, but NAB has confirmed it will also be shutting its Tara and Crows Nest branches.

NAB regional Queensland general manager Wayne Atkinson said the decision was a difficult one to make and was only made after consultation with staff and careful consideration.

"The way customers are banking in south-west Queensland and right across Australia, is changing,” Mr Atkinson said.

"In Tara, Allora and Crows Nest, 80-90percent of customers also use other NAB branches as well as using phone and internet banking.

"While we understand these changes will affect the surrounding community, NAB will continue to back the area through its services at other NAB branches and dedicated NAB Agribusiness Bankers and Business Bankers on the road.”

Mr Atkinson emphasised that NAB wants to continue to help our customers with their banking.

Customers can also continue to do their banking at local Australia Post offices, including making deposits up to $10,000 cash or withdrawals up to $2000 a day.

Allora resident and former Southern Downs councillor Glyn Rees said residents were saddened by the news.

"In my experience, the NAB has a long history and a supportive community history here,” Mr Rees said.

"It's going to be very sad, it's another blow below the belt for small communities where we lose such wonderful institutions as our banks.”

Mr Rees said the bank had provided support for the agricultural sector in the area for many years.

"Most people would be loyal to the bank over many years, not everybody is as au fait with online banking so that adds to their weekly load that they've got to get to Warwick or Toowoomba,” he said.

Southern Downs mayor Tracy Dobie said the closure reflected the fact that the way customers use banks was changing.

Cr Dobie said she would work with the Economic Development Team to contact the bank and encourage them to stay.

"A new business Darwalla has brought more residents to the area, there are more businesses around the area looking at expanding, this is the information that we'll provide,” she said.

"Unfortunately as we know in the banking industry, these decisions are made a long way from here on the Southern Downs.

"Any closure of any business is always sad news for the residents who are often the main users.”