It's been two years in the making and comes as one former credit union is pulling out their physical bank branches in the Mountains.
Bendigo Bank has announced they will open an agency in Blaxland inside the Blaxland Day n Night Pharmacy.
Jane Canfield, volunteer director with the Katoomba branch, said the fit-out is almost finished at 138 Great Western Highway.
"The Blaxland agency follows on the heels of the opening of the Blackheath agency in 2019 which also filled in the gap after loss of banking services in Blackheath and is in the Blackheath Newsagency.
"We have an opening date of approximately late January. Staff are only just starting training."
The push for community banking started in 2018 when the Commonwealth Bank branch closed, citing a 43 per cent drop in over-the-counter transactions in the past five years. The Katoomba branch of the Bendigo Bank which has been operating for more than a decade has been offering assistance since.
Katoomba Bendigo branch manager Brigitte McKenzie said they will be supplying the products, training and underwriting "while the host supplies the space and staff".
"It's a win-win for both sides as the agency provides an extension for the bank's brand awareness, while also providing an extra layer of customers and business for the host.
"This particular new agency is a result of a community losing its last bank and approaching our board of volunteer directors asking if we could help in any way, so for the most part its just a matter of where there is a will there is a way."
Ms McKenzie said customers will be able to do deposits and withdrawals and open basic accounts "and anything more complicated they can referral back to the home branch in Katoomba which we then take care of under the agency assigned number so that new business goes towards helping their community". She said it meant an extension to their existing sponsorship program in the Blaxland area. The bank has already distributed $600,000 in the Mountains.
Under the structure of community banks, 80 per cent of annual profit goes back to the community, usually in the form of grants and sponsorship to local organisations.
Explaining their expansion, as other Mountains banks were closing, she said Bendigo has "a very special and unique arrangement, so perhaps we are not experiencing the same pressures as other banking models".
"We have a very different business model. A unique one in the world. We operate more like a community owned franchise, so it's up to each branch to determine what their communities need and how to help them."
She said Bendigo also owned their branch building and had a volunteer board of directors which allows each community bank a degree of independence while still working under the larger corporate umbrella.
Ms McKenzie said they had not an obvious reduction in transactions during COVID and "realise the importance of this service to Blue Mountains residents".
"People generally like personal contact ... not everyone is comfortable to bank online."
Day n Night Pharmacy co-owner Kim Stubbs said the community was excited about the plan, even if the initial idea to have a stand alone branch did not happen despite numerous meetings.
"Initially about $900,000 was needed to be pledged to open a stand alone branch, however the process was quite slow, so we feel this option of an agency inside the pharmacy will create a quicker more tangible option for the locals."
She said "there was leakage of business to Springwood and Penrith as people spent money in those towns whilst attending to their banking. Hopefully now locals will find another reason to come back to Blaxland and help revitalise the town."
Ms Stubbs added: "It makes sense that as we are trusted professionals with our customers health, we are the trusted option to help with their banking as well."
She said a soft launch will happen in January.
