Learning from the Banking Industry

Almost all of us use the banking industry in one form or another throughout our lives. We may have a savings bank account to keep our money, a fixed deposit for long term needs or may be using any one of the various investment options that a bank has to offer. We may have taken a loan to buy a house or car or may have a debit or a credit card so that we do not have to carry around cash all the time. The banking industry also offers lockers for safekeeping and automatic teller machines for round the clock cash availability. In short, it is a very useful institution with varied services for all kinds of customers. But the single most important service that banking renders is to keep our cash safe and even allow it grow with time. Much like the self storage business where you can entrust your possessions and items when not in need and get them back safe and sound.

While the storage business was not always this sophisticated, lately it has begun to function more like the banking industry. It is no longer just about keeping your furniture and art safe in a temperature controlled unit. It is about greater value add on services. Better security, better access and better care of what you are entrusting. There are highly specialized services for recreational vehicles, wine, cheese that go beyond storage and actually look after your things better than you ever can. There are gifting services, paint and repair services as well as maintenance packages. Similar to the banking industry, the storage companies have diversified their offerings.

One of the biggest things that the banking industry relies on is customer trust. People will put their live savings into a bank that they believe will look after their money. Banks have to be seen as reliable and only then can they attract and keep their customers. Self storage companies too need to focus on this aspect as they too expect people to leave their belongings with them for long and indefinite periods. The banking industry is also one of the few industries that have redefined customer orientation. They realize like no other that the customer is very reason for their existence. With increasing commoditization of banking products and services it is these differentiators which will separate winners from losers.

From the customers point of view both these companies banking or storage needs to offer or provide easy accessibility to their money or possessions respectively. Nobody chooses a bank or storage outfit that is located in a different city. Nobody also chooses a bank or storage outfit that is not open to them when they need to make a withdrawal. Both these industries are centered on a customers need to have somebody else take care of his things due to security and space constraints. So both the banking and the storage industries can grow even bigger and better by focusing on how best to deliver this trust.

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