"The decision to pull out of Te Puke is extremely disappointing for residents and Kiwibank customers in Te Puke."
A Kiwibank spokesperson said Kiwibank and NZ Post were two separate businesses which currently shared the same premises in Te Puke.
"Declining customer volumes mean it is no longer viable for Kiwibank to maintain a physical branch for banking services in Te Puke," the spokesperson said.
"NZ Post is able to continue to provide postal services by partnering with a local business."
The changing needs of Kiwibank customers and the services they used in branches, as well as nearby alternative branch options, were behind the decision to close the Te Puke branch.
Kiwibank's general manager of retail distribution, Geoff Waller, said the changes had been confirmed with staff and the organisation wanted to be open with the community about what it was doing, and how these changes may affect them.
McClay said Kiwibank was a bank owned by New Zealanders and operated for the benefit of New Zealanders.
"If it can't show commitment to a town like Te Puke then it clear that it is not putting the interests of New Zealand first.
"I will be delivering a message of profound disappointment to Kiwibank owners on behalf of locals, and asking them to revisit this decision.
Kiwibank is 100 per cent owned by NZ Post, ACC and the NZ Superfund. New Zealand Post is 100 per cent owned by the New Zealand Government.