New Zealand's senior citizens are lining up for lessons on how to do their banking through automatic teller machines (ATMs).

The number of ATMs and cash outlets in New Zealand has grown steadily as banking industry mergers have helped trim the country's staffed bank branches by 29 per cent over the past five years.

Many older people say they feel threatened by electronic banking. The Hutt City Council, near Wellington, has organised a series of workshops to help a generation of people used to talking through financial transactions with bank staff to come to grips with electronic banking.

"These workshops provide the elderly with a safe environment to practice," the council said.

About 60 people participated in the two courses the council has already held, using mock machines in an indoor training room.

The organiser, Ms Lisa Leach, said demand from people aged over 50 has been so strong the council planned three more workshops.