In a statement Kiwibank said it carried out a comprehensive security audit on more than 250 branch operations nationwide and made the decision to withdraw banking and related services from three locations - Otara and Owairaka (Mt Roskill) in Auckland, and Rotorua West.
Kiwibank would not disclose any details of the safety audit for commercial sensitivity and security reasons.
Kumar said there had been no incidents that would have deemed the branch "high-risk".
"We've heard there has been a few issues with NZ Post regarding the closures in Auckland because they've had a spate of robberies, but we've had no security concerns here," Kumar said.
"We have a lot of customers and it's just a busy part of the area here, so my thing is why fix something that isn't broken?"
Kiwibank communications manager Bruce Thompson said the franchise operators were informed of the decision and given notification under the terms of their contracts.
"The withdrawal of banking services will all take place prior to Christmas, December 22," he said.
"Postal services are not affected."
Thompson said plans to turn the Tutanekai St PostShop and Kiwibank into a standalone branch of the bank was not related to today's announcement.
There is also a Kiwibank in Central Mall.
