A new banking hub has been announced for a Suffolk town, just a day after banking giant Lloyds revealed the town's last branch would be closing.

Cash machine provider LINK will be installing the shared banking service in Woodbridge after Lloyds announced that it will be withdrawing from the Thoroughfare on June 25 next year due to a lack of use.

Chris Ashton, chief commercial officer at LINK, said: “We’re pleased to recommend this new hub in Woodbridge. Many people locally still need cash and this hub will play a crucial role in helping them access it on the High Street.  

READ MORE: Woodbridge to have no banks as Lloyds announce closure

"We’re determined to make sure that, as we all choose new ways to pay, people who use cash in places like Woodbridge have the benefit of a convenient, accessible location to access and deposit cash on the high street.”

The hub is similar to a traditional bank branch, but will be accessible to everyone and will be operated by Post Office employees, providing a place where customers of any bank can withdraw and deposit cash, pay bills and carry out regular bank transactions.

In addition, there will be private spaces where customers can speak to community bankers from their own bank about more complex matters that require specialist knowledge or privacy. 

READ MORE: Woodbridge banking hub proposal is refused by LINK

According to Lloyds, 80% of the branch's customers use other ways of banking, such as mobile, internet or phone banking, as well as other branches. 

A spokesman for Lloyds said: "Most customers are now using our mobile banking app, internet banking or calling us instead.

READ MORE: Woodbridge news

"This means they are using branches, including our Woodbridge branch, much less. Because of this, we'll be closing our Woodbridge branch."

The next nearest Lloyds bank after the Woodbridge branch closes will be in Ipswich, more than seven miles away. 

READ MORE: Suffolk news