An Investigation into Yorkshire Bank Closures and Community Impact

This report investigates the closure of Yorkshire Bank branches in Leeds and their impact on local communities. It begins with an introduction outlining the research background, rationale, aims, objectives, and research questions. The literature review explores the concept and importance of banks for the growth of local communities, and the reasons behind bank closures. The methodology section details the research philosophy, design, and approach. The discussion and evaluation section analyzes the findings, followed by conclusions and recommendations. The report aims to understand the effects of the closures, including job losses and the impact on local economies, providing insights into the broader implications of bank closures and offering strategies to mitigate negative effects. This report is available on Desklib, a platform for students to access past papers and solved assignments.

Research Project

Table of Contents
SECTION 1: INTRODUCTION.....................................................................................................1
Overview and Background of research..................................................................................1
Rationale of research..............................................................................................................1
Research Aim.........................................................................................................................1
Research Objectives...............................................................................................................1
Research Questions................................................................................................................2
SECTION 2: LITERATURE REVIEW..........................................................................................2
Concept of bank for growth of local communities.................................................................2
Importance of bank in local communities..............................................................................3
Reason behind closure of bank...............................................................................................4
SECTION 3: METHODOLOGY....................................................................................................5
Research Philosophy..............................................................................................................5
Research Design.....................................................................................................................5
Research methodology...........................................................................................................5
SECTION 4: DISCUSSION AND EVALUATION.......................................................................9
SECTION 5: CONCLUSION AND RECOMMENDATION.......................................................21
RECOMMENDATION........................................................................................................21
Reflection.............................................................................................................................21
CONCLUSION....................................................................................................................22
REFERENCES.............................................................................................................................23

TITLE: An investigation into closure of Yorkshire Bank branches in Leeds and their impact on
local communities.
SECTION 1: INTRODUCTION
Overview and Background of research
Bank refers to financial institution which mainly accepts deposits which are provided by public.
It also lends money to individual by which they can satisfy human needs. The money which is deposited
by public is further used by banks for lending money and for some other banking functions too. But, bank
only uses some specific proportion of money that is used for different banking functions (Akterand
Basher, 2014). These financial institution also holds high position in a country as it helps in regulating
country in effective manner. The present research is based on Yorkshire bank, a financial institution of
England, UK. This financial institution is presently handling its business in northern England. Yorkshire
bank was incorporated on 1st of May 1859. With the recent information, it has been analysed around 79
branch of this bank are closing in Leeds which will ultimately impact upon its local communities. It will
also affect job of local people living in Leeds. As per estimation, it has been analysed that around 400
people will loose their job due to this incident. In this regard, top management team of this financial
institution have planned to conducted an effective research in order to identify that actual impact of this
event on local communities.
Rationale of research
The main purpose of this research is to enhance knowledge of researcher on actual concept of
closure of Yorkshire bank branches in Leeds and its impact over local community (Breakwell, 2015).
This research will also help researcher in finding out better opportunity which could be developed after
closure of bank. The current research will also help individuals who were affected by closure of bank and
helps them in identifying different strategies and ways by which its impact could be minimised. In this
regard, aim and objective for current research project are stated and formulated in below subheadings.
Research Aim
The research aim for present study is “To investigate the impact of bank branches in Leeds and
their impact on local communities”. A case study on Yorkshire Bank.
Research Objectives
 To identify the concept of banks for growth of local communities.
 To determine the importance of bank on Local communities.
 To analyse the reasons behind closure of bank.
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Research Questions
 What is the concept of bank for growth of local communities?
 What is the importance of bank in local communities?
 What is the reason behind closure of bank?
SECTION 2: LITERATURE REVIEW
Concept of bank for growth of local communities
As per the thoughts presented by Amadeo, K., (2019), Bank is considered as the part of financial
industry which mainly handles credit, financial transaction, cash and finance related work related to
finance industry. The author have also stated that bank gives safe place to people and professionals
through which they can make financial transactions effectively. Bank is mainly offering financial services
which includes saving account, checking accounts and certificate of deposit. Bank further uses deposited
funds for providing loans to customers. It can be said that financial institutions are contributing equally in
the business growth of local communities as people are getting opportunity to work in their own area
without going any where else. With reference to business people it can be said that they can easily
approach to financial institutions for fulfilling their monetary requirements.
Apart from this, another author named as have expressed that bank is the only safest place where
people can easily deposit cash in excessive manner. It also lend money at low interest rate to customers.
Along with this, it also pays interest to customers who have deposited money in their bank account on
specific interest rate. There are mainly two different types of banks named as commercial bank as well as
retail banks. Services which are offered by commercial banks includes retail banking which provides
deposit, credit, debit and money management to individual who uses it for their regular based lifestyle or
for business purpose.
On the basis of above presented discussion, it can be said that bank plays an essential role in the
growth of local community. Along with this, it has also been analysed that there are numerous of methods
which can be adopted by banking sector to provide better growth to local communities. One of the main
strategies which are adopted by financial institution that also contributes in improving or developing local
community is that it helps them in developing their knowledge on financial decisions. It can be said that
when ever an individual visits banks they gets to know about different things related to banks. It also
aware them about latest upgradations that enhances their knowledge effectively.
Apart from this, it has been analysed that bank also provides job opportunities to local
communities. It ultimately contributes in the growth of society. It has been evaluated that bank has
numerous of local employees who performs work of bank at regular basis. These banks are also providing
salary to each and every employee that helps them in fulfilling their basic requirements in effective
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manner. Along with this, in context of business person it has been analysed that banks also helps business
person in arranging financial funds so that their business activities can be executed in effective manner. It
can be said that if these businesses grow effectively then it directly contribute in the growth of local
community.
On the other hand, another author named as Cervero, (2018), have stated that bank can also
impacts negatively on the growth of society. This is because, some times bank does not accept all the
application given by local people and business person. This can become major barrier who stops local
community grow faster. In addition to this, this negligence of bank might also create their negative image
among customers as a result, they do not rely on bank which makes them suffer from financial issues. In
addition to this, it can be said that if local community does not grow faster then there are probable
chances that they existing bank will also not grow. This is because, growth of bank and local community
is interrelated with each other. If one will not grow them it will ultimately affect growth of other one
negatively. On the other hand, if local society will grow, then it will ultimately approach banks for
fulfilling their monetary requirements. As a result, both will grow effectively with each others support.
Importance of bank in local communities
According to views represented by Cohen and Jaidi, 2014, bank plays very important role in the
economic system of a country. Bank provides valuable services to its customers and helps in developing
the overall economy of the country. Although, bank do not create any wealth, but some of its activities
helps in various sectors which aid in distributing and exchanging wealth. Major role played by a bank is
they accept deposits and provide loans to their customers. This process of bank is popularly known as
financial intermediation. Flow of cash increases at market place, if individuals start depositing their
savings and funds in banks. Banking is an act or process where they accept or protect consumers saving
and then lend the amount to the required or needy customers. In today's world, a bank plays various roles
and provide diversified servies to its consumers. These services are debit card, locker facility, credit card,
online transfer of funds and many more.
On the other hand, local communities includes a group of people who interact with each other,
living in a common or similar locality. Interaction of these communities includes sharing of valuable
resources, informations, necessary data. If a group of people interact with each other on a regular basis,
they can easily influence each other and contribute their share in the overall development of the society.
For example, if an individual open its bank account in a bank known as Yorkshire in Leeds and gain high
interest rate in return. Then the person influence or motivate other people lives in local communities, to
open their account in that bank and get higher rate of interest. This will lead to increase the economic
condition and overall development of the country. To maintain the sustainability at marketplace,
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customers trust plays very important role. Local communities includes small or medium businesses,
households and many more. In context to small or medium business enterprises,
On the other hand according to the above discussion, it can be analysed that bank plays very
important role in the overall development and growth of local community along with this economic
condition of the country can be increased. Also, it has also been analysed that there are various roles
which is performed by a bank to develop local community as well as whole society.
Reason behind closure of bank
On the basis of thoughts given by Fearn-Banks, 2016, every business requires a specific and solid
reason for closing their business. It can be said that these reason can be one or more in number. It has
been analysed that if any business entity have planned to close their existing branches then they should
focuses on improving their relations with local people so that it does not impact negatively on the growth
of bank. In relation to banking sector, it can be said that there are numerous of reason which might
become main reason due to which bank closes. Some of them are defined as below:
 Competitors strategy- When customers are moving towards their competitors bank because they
are providing best deal to people. So, Yorkshire bank close their customers bank account and
through this goodwill of their bank in the market goes down that time they have to close their
bank accordingly.
 Funding Issue- This is a major issue of closing the bank as people are depositing on bank because
banks are doing fraudulent activities and through this Yorkshire bank and customers both are
facing many problems. So, in that case they have to close their bank.
 Uneven Changes- It means when frequent fluctuations are arises in the market which directly
affects the Yorkshire bank growth. Like need or requirement of customers are fluctuating which
is not easy for bank to deal with it so, they are facing losses and through this they have to close
their bank.
 Cost Cutting- For making future investment Yorkshire bank close some of its branches and
through this they cut their cost for future perspective.
 Fees are unforgivably high- When banks are charging high fees then there is chances for
customers to leave that bank. There are various fees such as like maintenance fees, minimum
balance fees, account closer fees and so on. Yorkshire banks charging high fees and because of
this customer are switch or left the bank that is why they suffer from losses. This is also a major
reason for Yorkshire to close their bank.
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SECTION 3: METHODOLOGY
Research Philosophy
It is a set of belief in which data should be gathered, analysed and used. Along with this, there are
two type of research philosophy such as positivism and interpretivism (Jahoda, Lazarsfeld and Zeisel,
2017). In context of, positivism research, researcher seeks out to identify, measures and evaluate any
social phenomena and then to provide logical and right explanation for it. Whereas interpretivism
research, researcher collects the data by interview and observation. Along with this, researcher access to
reality and it is integrated to human interest. In this present report positivism research is used as, it
provide the rational explanation of their data.
Research Design
It is a set of procedure which helps in collecting and measuring a research problem. It is basically
a blue print or framework which is followed by researcher to complete the study and to ensure that the
study should be related with the research problem.
Research methodology
It is s systematic method, by which by which researcher can be used for maintaining a reliability
and validity of the research report. It is a process of collecting data in a systematic manner for the purpose
of making business decision (Levi, 2016). In this methodology it include publication research, surveys
and so on for making a effective research report.
Research approach: it is a set of plan and procedure in which it include some following steps
and assumptions. It is used by researcher for collecting a data and information on their research topic.
There are two type of approaches which are described as below:
Inductive research: In this approach, researcher collect the data and information which should
be relevant to their research topic (Paredes, Komarekand Loveridge, 2015). This research is used by
researcher while conducting qualitative approach.
Deductive research: It means to develop theories or hypotheses for soling a research problem
and after that to test these theory or hypothesis on the basis of observation. In addition to this, deductive
research is based on mathematical assumptions and results (O'connor, 2017). The researcher used this
research when the sources of information and data are true and valid.
Qualitative research: it is a primarily exploratory research in which researcher provides an in-
depth information regarding their research topic. It is a cost saving method which helps a researcher to
completer his research on time.
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Quantitative research: in this method research is provides his clear opinion about their
research report and they provide all the data in numerical or statistical manner. It is a time consuming and
costly method for researcher.
Data collection Methods
It is a very important element of research methodology. It means the researcher or investigator
collect an information or data from their relevant source for finding a solution of their research problem
(Rich, 2014). It can be collected by two methods such as primary and secondary data collection which
are given as below:
Primary data collection: In this method data is collected by the help of interview,
questionnaire and so on. In this research report, structure questionnaire is to be used at the time of
collecting the data (Bond, 2018).
Secondary data collection: In this data information is collected by the help of books,
magazines, journals, websites and so on. In this method information is collected by researcher from the
recorded or published data.
Data sampling: There are types of data sampling such as random sampling and non random
sampling. For completing the present research project researcher use random sampling method. The
random method gives a accurate and appropriate information to researcher at the time of preparing
research report (Hurley, Gong and Waqar, 2014).
Ethical consideration
Every research should be conducted in ethical manner and it is compulsory for researcher to
followed it effectively.
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Questionnaire
Q 1) Are you aware with term financial institution and services which are provided by them?
a) Yes
b) No
Q 2) Do you think, bank contributes in the growth of local communities?
a) Agree
b) Disagree
Q 3) Which one among below mentioned are main reasons for closure of Yorkshire bank?
a) Structural shift
b) Trend reversal
c) Uneven changes
d) Cost cutting
Q 4) What are the different areas in which bank invest deposited for gaining benefits?
a) Providing loans
b) Stock market
Q 5) Which one is the effective method that can be adopted by bank sector for growing local
communities?
a) CSR activities
b) Deliver educational services to customers
Q 6) According to your perception, Yorkshire bank is only getting funds from public deposits?
a) Agree
b) Disagree
Q 7) Do you think, closure of Yorkshire bank will impacts negatively on businesses which are are
operating in Leeds?
a) Agree
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b) Disagree
Q 8) What are the different ways through which Banks can raise their deposits?
a) Adoption of social media marketing
b) Usage of multiple channels to approach potential audience
c) Adopting mobile application
Q 9) What could be the possible reasons for its closure?
a) For high returns by investing in future
b) Failure to fulfil its financial obligations
Q 10) How these could have been made good without closure?
a) By increasing more customers
b)By selling some of its undertakings and not the whole bank
Q 11) How bank can sustained in the long run?
a) Through acquisition
b) By cutting rate of interest
c) None of the above
Q 12) Provide some recommendation to Yorkshire bank through which can reduce its negative impact of
closure of branches in Leeds.
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SECTION 4: DISCUSSION AND EVALUATION
Theme 1: Aware with term financial institution and services which are provided by them
Q 1) Are you aware with term financial institution and services which are provided by
them?
Frequency
a) Yes 25
b) No 5
Interpretation: Banks generally belongs to financial institution which offers funds related
services to its customers. Customers of bank can be anyone any one that means businesses, government,
local people, school, colleges, government etc. From the above represented graph, it has been analysed
that 25 respondents from the total of 30 have stated that they aware about different services which are
offered by financial institution. Behind this statement, these respondent have specified reason that they
are using bank at regular basis for their financial transactions. On the other hand, remaining 5 people have
stated that they do not know much about financial services which are offered by bank. This is because,
they are not literate and are not going outside their home.
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25
5
a) Yes
b) No

Theme 2: Bank contributes in the growth of local communities
Q 2) Do you think, bank contributes in the growth of local communities? Frequency
a) Agree 18
b) Disagree 12
Interpretation: Bank is a financial institution which lends money to public on the basis of
accumulated funds deposited by people. As per the above mentioned graph, 18 out of 30 respondents
think that banks contribute towards the growth of local communities because they tend to provide
employment opportunities to people and also lend funds to personnel as per their convenience and
requirements. Also, 12 out of 30 respondents do not agree that banks contribute towards the growth of
local communities because at times, banks make use of such technologies which are not convenient to be
used by illiterate or semi-literate people.
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18
12
a) Agree
b) Disagree