Customers' Perceptions of Green Banking

Abstract

Banks today promote eco-friendly financial services by widely adopting the concept of green banking. This is generally done to minimize the impact of environmental degradation in their business activities. Besides its usefulness for environment, green banking also acts as a competitive edge for banks by offering customers with new channels of financial services delivery. However, service experiences and quality of service delivery often defines customers' perceptions towards the adoption of such services. This paper aims to study service qualities and other underlying factors that influence customers' behavioral intentions towards using green banking in Bangladesh. Under PLS-SEM technique, factors like reliability, privacy, responsiveness, empathy and information quality has significant positive effect on performance expectancy; while, performance expectancy, effort expectancy and facilitating conditions significantly influence customers' behavioral intention. Implications of these findings can provide practical recommendations and directions for further work to banks in Bangladesh.