Yorkshire Bank's Gregory retires from the board to take on new role and target growth across the north

The former Yorkshire Forward deputy chairman also said that ethical banking had to be at the heart of any Northern Powerhouse initiatives and defended the recent announcement that it is to close 39 branches, saying that the bank had to move with the times and that the decision to make the cuts had not been taken lightly.

Speaking exclusively to The Yorkshire Post about his new role, Mr Gregory said: “There is more growth in the north of England for us. We have strong links and strong roots but there is still a lot of market share for us to go at. The English side of the business is crucial to us

“This is a bank you can get passionate about. It is the brand, the identity but it is also the people. It was my personal commitment to the bank that made me say yes when the board said they would like me to stay on.

“I have got quite passionate about it. I believe in it, I like the people here and I value the relationship with the customer.”

Yorkshire Bank is part of Clydesdale Bank and owned by the CYBG which was floated on the stock exchange a year ago when the bank’s former owner National Australia Bank decided to exit the UK market.

Mr Gregory said that bank’s independence had given it a raft of new opportunities.

“The great thing about being independent is that we are now the masters of our own destiny. You can sense the release of energy among the staff and longer term business customers of ours. We can make better decisions about our future more quickly and at the same time we are investing a record amount in the business.

“They (National Australia Bank) were a good parent group in terms of making sure that we had good technical platforms. But they did not have a clear strategy for the UK. Being independent means we can increase our growth, make decisions more quickly. We are now absolutely focused on the UK and home market.”

Mr Gregory’s tenure at the bank has seen a period of rapid change at the firm, including the financial crisis when the conduct of the banking sector was brought under serious scrutiny.

“We are in a better place now than we were as a sector,” he said.

“At the end of the day Yorkshire Bank did get things wrong, we have to be honest about that. We need to recognise that and make sure that we never get into that situation again. Personally I think that banking boards generally were complacent and not actually connected enough to the products that they were responsible for.

“As a sector we have paid the price for the mistakes of the past I do not think Yorkshire and Clydesdale were as badly affected as some of the others. But have been very open and honest about where we got it wrong. Our governance is an awful better as a result, and feedback from customers is very good indeed. When it comes to the Northern Powerhouse, finance is an absolute prerequisite for seeing that growth being achieved.

“Trust between banks and customer is an absolute priority.”

Mr Gregory also said that Northern Powerhouse and the recently announced industrial strategy from the Government were welcome boosts which brought further opportunities to the bank.

“It gives confidence in pathways for future industrial strategy, as long as those priorities remain reinforced and consistent. What you don’t want is sudden shifts in Government policy, energy has suffered from that. Businesses need confidence that they can invest long term.”

Last month Yorkshire Bank, along with HSBC and Yorkshire Building Society, announced a raft of branch closures, with other bank and building society’s having rolled out similar closure programmes in the past few years.

Mr Gregory said that he did not anticipate a future for banking that did not include branches but did say the march to digital day-to-day banking was making life for high street banking harder.

“There is quite a significant move in terms of customers away from branches. Ten years ago I used to go into a branches in Yorkshire which sometimes were full to overflowing and my concern was the length of the customer queue. The footfall has significantly changed in the order of 30 per cent away from branches to online and mobile in particular.

“We are human beings in this bank. We know the pain that is caused by closures. And these are decisions that are not taken lightly and they are really worried over. We know the impact and the significance of them. But we have to make sure this bank keeps on growing and is sustainable so we can invest in the future, and to do that you need to demonstrate the bank is running efficiently.

“I don’t think we will ever get into a position where branches do not exist. There will always be branches within a reasonable travelling distance of any community. The ones that stay will be better quality branches.”

Richard Gregory joined Yorkshire Bank in 2000 having enjoyed a varying career spanning media, healthcare, higher education and regional development.

During his time at the bank he has served as a senior independent director and Risk Committee chair before retiring from the board role this year.

He has previously worked as managing director for Yorkshire Television, a chairman for two NHS foundation trusts and as chairman of the Yorkshire International Business Convention.

He was deputy chairman of Yorkshire Forward between 1998 and 2004.