The Rainbow branch of the Commonwealth Bank is to close.

After spotting signs outside the Rainbow Commonwealth Bank branch, residents have been made aware it will be shutting permanently on Friday, April 23.

Commonwealth Bank regional general manager David Castle said the decision came after a review of the store.

"Following a recent review and in line with our lease expiry, we made the difficult decision to permanently close the Rainbow branch. This branch has had a 31 per cent drop in transactions over the past five years," Mr Castle said.

"We've also found that around 35 per cent of customers from Rainbow are already visiting these nearby branches.

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"Additionally, the Rainbow LPO Australia Post outlet just across the road is available for customers to conduct personal and business banking transactions such as withdrawals, deposits and bill payments including passbooks during normal business hours."

Mr Castle said COVID-19 impacted how banks are used.

"The coronavirus pandemic has also accelerated a continuing shift in banking behaviour with a significant proportion of our customers seeking assistance through our Australian-based contact centres. In particular, calls to our hardship line increased by 800 per cent compared to the period before the pandemic," Mr Castle said.

"This has also resulted in a significant increase in customers self-serving on the app or via NetBank, and a significant reduction in foot traffic in our branches.

"We've ensured customers who prefer over-the-counter service still have access to this option. For Rainbow customers, we have other branches in the region at Warracknabeal, Horsham and Hopetoun."

The current opening hours for the Rainbow branch are 10.30am to 2.30pm Monday to Friday.

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