Outram, situated at the western edge of the Taieri Plains, backing onto the Maungaatua Ranges, developed at the site of a ferry crossing on the Taieri River, on the wagon track between the Old Dunstan Road and Dunedin. After severe floods in 1869 the township was re-surveyed on the plan of Mountfort (who had surveyed the area in 1862), and named after General Outram of the Indian Mutiny fame. In October 1877 the Mosgiel-Outram railway line was completed, and Outram experienced renewed activity as it became the terminus of the developing Central Otago railway line. Outram remained the centre of the carting industry for nearly fifty years.

The building was constructed for the Bank of Otago, which was founded by a group of Dunedin businessmen in 1863. The bank had its origins in the rich gold discoveries of the Otago Province. A group of financiers registered a company in London, and during the 1863 session of the New Zealand Parliament, authority was obtained for the bank via a private members bill. John Bathgate became the first manager of the Bank of Otago. Branches were established on the goldfields, and outlying areas around Dunedin.

The Bank of Otago acquired the half acre triangular section in 1869 and erected the building shortly afterwards. By the early 1870s, the Bank of Otago was having financial trouble as a large loan to the government for the construction of public works, coupled with the end of the gold boom, tightened conditions. The troubles led to the withdrawal of Mr Bathgate as manager, and the absorption of the Bank of Otago by the National Bank of New Zealand, under the management of W.J.M. Larnach.

[Prominent Dunedin architect Robert Arthur Lawson designed the building. The contractor was Joseph Clayton. The Bruce Herald described the building in 1870: 'The entrance porch is formed of two massive Eqyptian pillars, which support a suitable entablature with fancy scroll, a similar scroll work being continued around the building which greatly tends to relive its whole appearance.' The articles goes on to describe the bankinr room with its cedar desks, and the manager's room. Behind the manager's room was the fire-proof brick safe with two iron doors. The remainder of the building was turned over to the domestic requirements of the manager in a 'style which amply proves that every comfort and convenience.' The dwelling house consisted of 'handsome rooms' beside the stores, scullery and kitchen, and stabling.]

The Bank of Otago was taken over by the National Bank in 1873. Within a few years there were doubts as to the viability of agencies at both Mosgiel and Outram. By 1891 W.R.C. Churton was acting as manager for both branches. As Mosgiel progressed, Outram declined. In 1931 closed the branch at Outram and converted into an agency.

The bank operated in Outram until 1957-1958, when it was sold. Since then it has been used as a dwelling, at one time converted into flats, but now used as a family home.