Tim Pie, spokesman for HSBC, said letters were being sent out today to all customers of the branch notifying them of the closure date.

The branch, in Market Street, will be closed on November 17.

Mr Pie said: “The first reason is essentially declining customer usage of the bank.

“On Mondays and Fridays, it’s quite busy but for the rest of the week, it’s not quite a ghost town, but it is under-used compared to the Cannock branch.”

He said branches were reviewed each year and Cannock’s branch was only three miles away and had undergone a £600,000 revamp.

Mr Pie added: “We did look long and hard at Hednesford and investigated the possibility of refurbishment and estimated it at half a million pounds.

“But, given its longer term viability, which as a business we have to consider, it wasn’t an investment we could make.”

There will be no job losses and each of the seven staff will be moved elsewhere. HSBC is also keeping a cash machine in the town.

Hednesford businessman and county councillor Derek Davis said: “It’s absolutely frightening for the town and is most upsetting. I’m really hurt.

Meanwhile, supermarket Somerfield today confirmed it will be closing its Market Street branch in Hednesford by the end of October. The branch employs a total of 26 staff.