Bernard Ginns: HSBC’s loss will be Yorkshire Building Society’s gain

The former chief executive of First Direct bank was mentioned in speculation as a possible contender for the chairman’s job at Yorkshire Forward, which in the days before the coalition Government would have given him a significant voice on the regional and national stage.

But as we all know Local Government Secretary Eric Pickles put the kibosh on the regional development agencies in spring 2010, leaving Mr Pilling to continue his ascendancy through HSBC hidden from the gaze of this column.

Until last Friday morning, when Iain Cornish phoned me to say that Mr Pilling had been appointed as his replacement as chief executive at Yorkshire Building Society. The appointment makes good sense, in several ways. On the financial services side, Mr Pilling has run a successful organisation in First Direct, HSBC’s telephone and internet retail bank.

He went on to become head of branch network at Britain’s biggest bank, HSBC, an experience that should be very handy at Yorkshire Building Society, which places great emphasis on its network of 178 branches.

Mr Pilling is also a big fan of Yorkshire as a place, if his non-executive directorship at the tourist board from 2005-08 is anything to go by.

Not a natural-born Yorkshireman, he moved to the region in 2002 following his appointment as marketing director at Asda and, like many incomers, he decided to make it his home, settling in Harrogate with his wife and two children.

There was obviously potential for him to progress further at HSBC, but that would likely have entailed a move to London and lots of long-haul flights.

Instead, he chose Yorkshire and now has won the plum role at YBS. It is understood that he did not apply for the job; rather, he was approached by headhunters at Egon Zehnder International.

Nevertheless, HSBC won’t be happy to see one of its rising stars leave for another organisation.

But the bank’s loss is the mutual’s gain and it is clear that Mr Pilling is relishing the opportunity to join the building society movement.

He said: “The Yorkshire has a tremendous opportunity to build on its status as an independent building society to provide a real and trusted alternative to the banks and I am very much looking forward to that.”

According to the chairman, Ed Anderson, Mr Pilling will fit into the YBS culture of teamwork very well.

Mr Anderson said: “I’m very pleased with the appointment.

“We will maintain our commitment to mutuality under his leadership and he will work well with the very strong existing team that we have.”

Mr Anderson described Mr Cornish as a tough act to follow.

He said: “Iain’s done a fantastic job. These last four years have been incredibly difficult for everybody in the financial services sector, but the fact that we have reached this stage in such a strong position is a credit to Iain and his colleagues.”

I asked Mr Anderson for his perspective on the current turmoil in the financial markets.

He said in reply: “I just take assurance from the fact that we are relatively extremely well placed. Our reliance on wholesale funding is very limited now and indeed we have been to the market in recent times.”

He was referring to fundraisings through covered bond issues and securitisation.

“Both were really successful. Now with hindsight, the timing was absolutely brilliant,” said Mr Anderson.

“That’s a credit to Andy Caton, the corporate development director, and his colleagues.”

Mr Pilling takes over at the end of the year. Good luck.

* Staying with financial services, trust in most bank brands across Europe is at an all-time low.

That’s a view confirmed by John Kirkbright, a banking veteran and industry consultant who hails from Yorkshire.

Not great news for shareholders and the hard-pressed frontline staff who are still suffering for the sins of the higher-ups.

But it does present major opportunities for non-banking brands to break into a highly competitive market.

Tesco has invested heavily in its financial services operations, while Sainsbury’s Finance has established a sizeable presence in the insurance industry.

Marks & Spencer, meanwhile, enjoys a formidable position as one of the nation’s favourite retailers.

Might it be in a good position to capitalise on the general antipathy felt towards banks? Mr Kirkbright certainly thinks so.

Between them, Tesco, Sainsbury’s and M&S already have 15m personal financial services customers.

They’re in a good position to win lots more.