Barclays bank said it will close its branch at The Forum in North Hykeham.
Instead, the bank will open a “new-style” branch at Asda supermarket in North Hykeham, mainly with self-service machines.
The Forum branch is set to close on March 7, 2014.
In a letter to customers, Barclays said: “We’re doing this as part of a review based on where our customers are and where it is most useful to provide our banking services in the area.
“We don’t undertake closures lightly, and we’re sorry if this is a branch that you have found convenient to use in the past.”
Three days after The Forum branch will close, Barclays will open a new type of branch on March 10, 2014.
Having a branch in Asda would allow people to use the banking facilities for longer opening hours, same as the supermarket.
However, the Asda Barclays branch will be aimed at non-business customers.
There will be some branch staff to assist people with most of their normal everyday transactions, Barclays said.
For any business banking needs, the nearest branch will remain the Tritton Road branch, some two miles away from The Forum.
Asda’s rivals, Tesco and Sainsbury’s, already offer banking services, so the American supermarket chain can now offer similar services.