Control 'Electricity Costs' of Banks (Through 'Energy as a Service' (EaaS) Model)

Abstract

The Indian commercial banks today face noteworthy challenges from every path and direction. The continuing environment of low growth, or even negative in some sectors, interest rates continue to create the intense margin pressure thereby it affects bottom line of the banks and barriers to growth etc. At the same time, the increased competition from the “Neo Banks” and also the ‘Fintech Companies’ continue to crumb away at the edges of the traditional banking business in the economy. Consumer preferences are increasing and their expectations are endlessly shifting and the rising as new and incumbent digital innovations are redefined how the services are presented and delivered to the customers. In this ever-challenging environment, the Cost Management remains a strong authoritative for the complete ‘Global Banking Industry’. Across the globe banks adopted different strategies / systems to reduce their ‘Information Technology Costs’ and also the ‘Overheads like Electricity / Power’ etc. The ‘Cloud Computing Model’ is also to reduce the ‘Information Technology Costs’ and ‘Energy as a service (EaaS) Business Model ’is to reduce ‘Electricity / Lighting Costs’ are the few examples of ‘Cost Reduction Tools / Strategies’.