Magnificent prosperity for the few is coupled with overwhelming urban deprivation for the many.

Nowhere are the differences more pronounced than in the West Riding where a new class of wealthy industrialists live virtually side by side with an underbelly of impoverished workers. Wages are generally low. There is no welfare state.

It was into such an environment that arguably Halifax's most famous son was born.

Colonel Edward Akroyd, the heir of a wealthy textile dynasty, would grow up to transform the already successful family business into one of the biggest of its kind in the entire world, establishing factories at Haley Hill and Copley.

But this archetypal Victorian gentleman, whose home was what is now Bankfield Museum, Boothtown, Halifax, was more than just another wealthy industrialist.

Acutely aware of the inequalities of his age, Colonel Akroyd became a much-loved philanthropist, trying to alleviate the plight of the poor. He funded local allotment societies, created a school for child labourers, introduced a workers' pension scheme at his mills and built the model village of Akroydon for his employees.

But it was undoubtedly the not-for-profit small penny bank he set up which became his most lasting legacy.

The West Riding Penny Savings Penny Bank, as it was first called, was officially opened, with its headquarters in Leeds and its first branches in Dewsbury and Oxenhope, on May 1, 1859.

David Glover, local historian, says: "It was what was called a 'cloth cap bank' in that it was created to cater for the poor. Investors could put in as little as a penny at a time, which could be saved for a rainy day, perhaps for unemployment, sickness or old age.

"Indeed this ideal was really shown in 1870 when, during a severe economic slump in Bradford, the bank opened a hot soup centre for depositors."

From small acorns did a mighty oak tree grow and as the bank's popularity increased, so too did its ambition.

Within two years it was renamed Yorkshire Penny Bank and branches were opened in all the ridings. By the end of 1860, there were 128 in total with deposits worth £23,313.

Many of the branches were based in community buildings opening just one evening a week but in 1865 the Leeds branch became the first to open daily.

It was followed by others in Bradford and, in 1876, Halifax.

David Glover says: "Even as it grew I remained loyal to its roots.

"It pioneered a scholar's bank which was aimed at teaching poor children thrift, and it issued cheque books, specifically designed for small businesses which other banks might not want to deal with."

Global outlook... with local links
MORE than 15,000 mourners attended Colonel Akroyd's funeral when he died aged 77 in 1887. Businesses across Halifax closed as a mark of respect.

But while his textile firm would slowly decline over the years, his penny bank went from strength to strength.

Surviving a run caused by financial uncertainty in the wake of a 1900 Boer War reverse, it went on to become a limited company in 1911 when it was taken over by an 11-bank consortium.

It remained as such until 1990 when the Australian giant National Australia Bank bought the company for £1 billion.

Yet despite this new global outlook, it has remained strikingly close to its original principles.

The name Yorkshire Bank – given in 1959 to celebrate the business's centenary – has rem-ained, while during the 1980s, it offered striking Yorkshire miners a deferral on mortgage payments in support of their cause.

It now employs nearly 9,000 people across the UK and operates 191 retail branches.

Last year alone its 444 cash machines dispensed £2.45 billion, while this year it has remained notably strong in the face of the global credit crunch.

Its headquarters remain in West Yorkshire where nearly 1,900 employees are based. And a new exhibition to celebrate the 150th anniversary is to be held at Bankfield Museum throughout this month.

A Yorkshire Bank spokesman said: "The vision of Edward Akroyd as he walked the cobbled streets of Halifax remains true in that it has become a dynamic 21st century bank while keeping those strong community commitments."