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Adoption and perception of banking customers towards green mode of banking: a demonstration of structural equation modelling

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Abstract

Banks are developing services in response to consumer demand for environmentally friendly options. The trend towards green banking is picking up steam and will continue to do so over the next decade. Focus of the article is to analyse the issues faced by banking customer to adopt this green mode of banking. This exploratory study uses a questionnaire (quantitative treatment) to collect data through online mode. It was found in a survey that majority of respondent are aware of basic features of internet banking only. Thus, banks must make them aware with all the feature of internet banking and must provide them knowledge that how internet banking has a wide scope then other banking channel. The traditional definition of green development focuses primarily on environmental concerns. The growing use of the internet for various internet banking services opens up the possibility of establishing a long-term banking business. The goal of this paper is to identify the factors that influence internet banking acceptability and, as a result, it will give a roadmap to banks for its long-term growth. Results of the study indicating that internet banking is becoming more popular, but still the threat of privacy concerns and e-trust are two major roadblocks to acceptance.

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Authors and Affiliations

  1. Graphic Era Hill University, Dehradun, Uttarakhand, India

    Shagun Tyagi

  2. Department of Management Studies, Graphic Era (Deemed to be University), Dehradun, Uttarakhand, 248001, India

    Ashulekha Gupta

  3. i Nature Education Solutions Private Limited, Bengaluru, KA, 560052, India

    Nabila Ansari

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  1. Shagun Tyagi
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Appendix

Appendix

Questionnaire: Constructs and items

Trust

I trust that my bank promotes environmentally friendly activities

I am confident that my bank promotes sustainable project

In general, I can trust internet banking for my banking activities

My bank is transparent about their environmental practices

Perceived price

I think green banking services are comparatively cheaper in comparison with traditional banking services

I can bear extra cost for green banking services

How do you perceive the value of green banking services compared to traditional banking services

Bank Credibility

My bank is committed to environmentally friendly activity

My bank communicates its environmental initiatives to its all its users

I believe my bank has the expertise to provide green banking services

Physical presence of bank personnel matters while I conduct my financial transaction

If given opportunity I would move to bank which providing environment friendly services

Intention

I would positively like to use green banking services in the future

I would love to recommend green banking services to others

environmental aspect having influence on my decision towards financial services I am using

I would see myself using the internet banking for handling my banking transaction

Perceived Risk

There is a chances of transaction failure due to slow speed of internet, server breakdown or website maintenance

Doing banking activities via internet is quite risky

I trust my bank can handle the potential risks of green banking services

I am worried about using online banking because other people may be able to access my account

I have a concerned about the security of transactions when using green banking services

Attitude

I feel positive about using green banking services

I am positive about the contribution of green banking services to a sustainable future

I believe internet banking is for young people

My attitude towards internet banking is favourable

I think green banking services in order to reduce your carbon footprint is great initiative

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Tyagi, S., Gupta, A. & Ansari, N. Adoption and perception of banking customers towards green mode of banking: a demonstration of structural equation modelling. J Financ Serv Mark (2023). https://doi.org/10.1057/s41264-023-00236-6

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