Barclays have announced their branch in the Isles of Scilly will close on Thursday 18th October 2018.
Account holders in Scilly started to receive letters yesterday informing them of the closure.
In a statement sent to Radio Scilly Barclays said: "As with many other sectors, we are seeing unprecedented changes in the way our customers are choosing to undertake their banking, with over 70% of our customers on the Isles of Scilly increasingly using online, telephony and mobile devices.
"This is not a decision we have taken lightly and we recognise that this is disappointing news for some of our customers on the Isles of Scilly."
The reasons and contributing factors behind the closure include the fact that 73% of branch customers are choosing alternative ways to undertake their banking such as online, mobile and telephony.
Customer usage has declined by nearly a third (27%) over the past 24 months and that 62 customers solely use the branch to undertake their banking.
Barclays also cited that 99% of UK personal banking services are available at the Post Offices on Scilly. Customers are able to undertake everyday transactions, including obtaining a balance, paying in a cheque, or taking out and depositing cash.
The statement added: "We’re committed to the UK Access to Banking Standard. All our customers will receive a letter informing them of the closure and we have extended the 12 weeks’ notice period to allow additional time to support our customers in the transition. A ‘decision to close document’ and posters will be displayed and available in the branch. Any customer with concerns about the closure we encourage to contact our colleagues at the local branch."
Michael Watts, Barclays Community Banking Director, Cornwall and Devon said: “The way people do their banking is changing as they increasingly use online, telephone and mobile devices, with over 70% of customers in the Isles of Scilly also using these channels.
“This trend has impacted customer usage of the branch with a decline of 27% over the last two years alone, which is why we have taken the difficult decision to close the branch later this year.
“We hope that the availability of the local Post Offices along with our range of digital and telephony channels will help to ease the transition for our customers.”