The role of customers’ awareness towards the sustainable development goals (SDGs) of banks on their behavior

Abstract

Abstract Banks and sustainable development have lately gone hand in hand. Of late, banks have focused on sustainable management in order to improve their environmental footprint, to eliminate financial risks, to promote social issues, and to exploit new opportunities. The sustainable development management of organizations attracts new customers over and above conventional institutions thus leading to greater market share and increased revenues. This paper aims to examine if and how sustainable development goals (SDGs) adopted by banking institutions play a role in customers’ decisions and behavior. The way that banks, SDGs, and sustainable image affect customer behavior, attitudes, trust, loyalty, satisfaction, and perceived fair pricing policy is assessed. To this end, 1084 questionnaires were collected and the PLS-SEM method was utilized. The findings show a positive relationship between the stance of banks relating to SDGs and customer trust, loyalty, and perceived fair pricing policy. Finally, the SDGs adopted by banks are an important strategic tool which strengthens relationship with their customers.