After 129 years, what is believed to be Western Australia's oldest bank will close its doors, leaving a small Wheatbelt community scrambling for solutions as to where to deposit cash.

Key points: Westpac is closing its branch in the regional town of York in Western Australia on September 27, despite the town growing in population

Westpac is closing its branch in the regional town of York in Western Australia on September 27, despite the town growing in population The branch's 1,000 customers, including small businesses, were not consulted about the closure

The branch's 1,000 customers, including small businesses, were not consulted about the closure Westpac said less than 2 per cent of transactions were in the branch network, with most performed via online banking

Last month Westpac made the decision to close its York branch in WA, without consulting any of its 1,000 customers in the community.

The bank was constructed and established in 1889, by what was then known as the Bank of New South Wales, but later changed to Westpac.

Sheep farmer Peter Boyle has only ever banked with Westpac. His family has been with the same branch for 115 years. ( ABC News: Bridget Fitzgerald )

Many of its customers, like sheep farmer Peter Boyle, have used the same bank for generations.

"My family has been involved in the bank for 115 years that we can trace, it may even be longer," he said.

"They have just said 'the decision has been made, tough luck, it is irrevocable'."

Unlike other small Wheatbelt towns, York's population is increasing, the main street has more occupied shops than empty, and it is becoming a tourist hotspot with its impressive heritage buildings, vintage cars and beautiful scenery.

Shire president David Wallace said the decision to close the bank could prove detrimental for the community.

"York has one of the oldest demographics in Australia — our average age is 51," he said.

"Close to 30 per cent of our population of 3,600 is over the age of 60 and a lot of these people do not use electronic banking and they still like to go down to the local Westpac.

"It is not as simple for them to go to another town … because some of them don't like driving too far."

York's main street is a bustling hub of cafes, small shops and heritage buildings. ( ABC Midwest and Wheatbelt: Laura Meachim )

Bank integral for local cash economy

Customers were told they can use the Westpac branches in Northam and Midland, the closest being 35 kilometres away.

In a statement the bank said the decision was not made lightly.

"Over the past few years, we've experienced a significant decline in customers' transactions undertaken at our Westpac York branch. More and more local customers are choosing to undertake their banking in different ways, for example digital banking. In the past 12 months, less than 2 per cent of transactions were through our branch network as increasing number of customers enjoy the convenience of our online and mobile banking services."

But a local café owner, Jenny Garroun, said she relied on the bank to make daily cash deposits.

"We are becoming less of a cash economy, but nevertheless a business like mine does have a significant amount of cash going through," she said.

"For us it is really important, we need to bank locally otherwise it can delay the amount of time in which cash is banked."

Glenn Scott owns the local supermarket and said he was in the lengthy process of transferring his banking to the Bendigo Bank, the only other bank in town.

"Being one of the big major banks, Westpac quite obviously gives you really good rates and those rates will change when you go to a small bank like Bendigo," he said.

He said to make daily cash deposits through Westpac in Northam, it would be a costly exercise.

"We would have to have two people going for security and of course you would also increase your insurance to cover that trip back and forward," Mr Scott said.

"We do cash through Westpac here now every day of the week."

Ms Garroun said changing banks was not an option for her, as it would be too costly.

"Like most other people you do not just have one account, you have mortgages and other business interests that make it quite difficult," she said.

"It is not just a matter of saying 'Well I will close that one and go across the road', it is actually costly, it is quite a process.

"At the end of the day, I need somewhere I can do cash deposits, that is how this kind of business works."

York is the oldest inland town in WA and its main street is lined with heritage buildings like the York Town Hall. ( ABC Midwest and Wheatbelt: Laura Meachim )

Bank's closure a red flag for the region

With a growing population, success in agribusiness and tourism on the rise, York's population is actually increasing year by year.

The Member for the Wheatbelt and Nationals WA leader, Mia Davies, said the bank's closure was a red flag for the rest of the state.

"It is a marker when you see the big banks withdrawing from communities like York," she said.

"We've seen this over the last 20 years in the eastern Wheatbelt, but this marks a new point in community services leaving the Wheatbelt."

Ms Davies said the closure could be the start of more services leaving York.

"It is extraordinarily disappointing that banks like Westpac do not see the value of retaining a shopfront or a service in a community like York," she said.

"In this day and age I would have thought as an organisation, supporting our agricultural sector, supporting small business in the wake of the Banking Royal Commission, building community trust would be a priority for our banks."