NATWEST will close its Shanklin branch in June of next year and introduce a mobile bank as a replacement.
It is the latest in a wave of bank closures hitting the Island, with Lloyds recently announcing plans to close Sandown, Cowes and Bembridge branches.
The branch will close on June 5, with NatWest claiming a reduction in demand, as people turn to online and mobile banking.
Isle of Wight Councillors for the area, Jon Gilbey and Richard Priest, both negotiated with NatWest to reduce their opening hours rather than shut the branch, last year.
The councillors now have a meeting in the new year with the bank's chief executive to discuss possible solutions.
NatWest have said a mobile bank will replace the current building on the High Street and until then a specialist taskforce will help customers learn to use mobile and online banking.
A spokesman said: "The way people choose to bank with us has changed radically over the last few years. Between 2010 and 2015, mobile and online transactions have increased by over 400 per cent and mobile transactions alone have increased by 1,350 per cent.
"As a result of this change, 43 per cent of the customers of the branch are actively choosing to use online and or mobile banking for their day to day banking needs.
"We are communicating with our customers affected by the closure and proactively contacting vulnerable and regular branch customers.
"We have listened closely to feedback from local communities and have extended the time between announcing our decision and the branch closure to six months."
It is not yet known on what days the mobile bank will be available and where from.
NatWest said alternative options are telephone, three local post office branches, 13 cash machines in the area or the branch in Ryde.