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Low membership and declining transactions have prompted NZCU South to consider the future of its Palmerston branch.
Just a day after announcing the closure of branches in Lawrence, Hokitika and Westport and merging on to single sites of branches in Invercargill and Christchurch, NZCU South general manager Andrew Leys said he wanted to meet the Waitaki District Council to discuss the future of the Palmerston facility.
Mr Leys said NZCU had only 250 members in Palmerston and transactions had dropped over the past 12 to 18 months.
Waihemo Community Board chairman Rod Philip said it would "certainly be worth making an effort" to retain the Palmerston Credit Union agency.
Waitaki Mayor Alex Familton said he "had concerns for local people" if the agency closed.
The branch opened 10 years ago in a partnership between the then Credit Union Otago and the Waitaki District Council.
Space was rented to the credit union in the council-owned Waihemo Centre in Palmerston, and district council staff were paid to process the transactions for credit union.
An ATM machine was later installed by the credit union in the Waihemo Centre, at Palmerston.