The site will become the bank's fifth "branch of the future".

As part of its plans, Bendigo Bank intends to engage central Victorian artists for art displays and murals, and provide a pop-up space for emerging businesses and creatives.

The retail pop-up would be provided free of charge, and would be available to each exhibitor for two weeks.

The plans also include a community event space.

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Head of local banking Nick Carter said the redevelopment would lean more towards an open plan retail-style experience than a traditional bank branch.

He said the bank would also be seeking to transform its people, with a greater focus on engaging customers in their needs.

"We still need to provide expertise around banking, but we feel the people you will see in these branches will be highly engaged and create an experience that's not typically seen in a branch where you go to a counter, you hand over some money and make an exchange," Mr Carter said.

The Mitchell Street branch will close on September 11 to enable the redevelopment to get underway.

The Bendigo "branch of the future" is expected to open in late November.

Mr Carter said the bank would use its Bendigo central branch to take care of its Mitchell Street customers during the works.

Other branches of the future are in Norwood, South Australia; Carlton, Victoria; Leichhardt, New South Wales; and Coffs Harbour, New South Wales.

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Mr Carter said the bank had been considering basing a "branch of the future" at Mitchell Street for 12 to 18 months.

"It's taken us a while to get to this, but we're really excited about the modernised customer experiences we can showcase in this part of Bendigo," he said.

The bank is partnering with Public Design Group on the retail design.

Mr Carter said local businesses would be involved in the renovation.

"It's been a deliberate journey of not jumping to one solution," he said, asked why a branch of the future wasn't based in Bendigo sooner.

"What we try to do through these innovation sites is to adapt it to a local market, a local community, the local customer cohort.

"Whilst it'll have flavours of the Bendigo brand and representing our long, established history, it will be very unique and localised to the market.

"We will take our time to work through this."

He said the Mitchell Street site was earmarked for the project in part because of the location and the business opportunities in the area.

"That's one of our more successful corporate branches nationally, but we felt if we're able to modernise and change the experience for customers in that branch it'll give us a good test case to continue this on," Mr Carter said.

He said the project was part of a broader Bendigo branch transformation.

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Mr Carter said COVID-19 hadn't hurt what the bank was trying to achieve.

"It's provided us with probably an acceleration around some of the digital tools we'll be able to use in the branches," he said.

"We're really committed to creating a vibrant space where customers can engage with us informally or formally around banking transactions.

"We're really confident this proposition will stand up post-COVID."

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