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Customer Perception and Awareness of Green Banking Practices: An Alternative Strategy of Environmental Sustainability

Customer Perception and Awareness of Green Banking Practices: An Alternative Strategy of Environmental Sustainability
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Author(s): Niranjan Devkota (Quest International College, Pokhara University, Lalitpur, Nepal), Rekha Rai (Quest International College, Pokhara University, Lalitpur, Nepal), Ghanashyam Khanal (Tribhuvan University, Nepal), Ihtsham Ul Haq Padda (Department of Economics, Federal Urdu University of Arts, Science and Technology, Islamabad, Pakistan), Udaya Raj Paudel (Principal-Quest International College, Pokhara University, Lalitpur, Nepal), Seeprata Parajuli (Quest International College, Pokhara University, Lalitpur, Nepal) and Udbodh Bhandari (Quest International College, Pokhara University, Lalitpur, Nepal)
Copyright: 2022
Pages: 22
Source title: Disruptive Technologies and Eco-Innovation for Sustainable Development
Source Author(s)/Editor(s): Ulas Akkucuk (Boğaziçi University, Turkey)
DOI: 10.4018/978-1-7998-8900-7.ch002

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Abstract

The governments, business firms, policymakers, advocacy groups, and even the public recently are hotly debating on the issues of environmentally friendly practices. In this context, being a part of 'going green', green banking, which plays an important role in environmental sustainability, has been a buzzword in the global baking industry. This study identifies how the customers perceive the emerging concept of green banking initiatives of banks and also analyzes the factors that influence such practices of the customers. Using a structured questionnaire, the primary data were collected from 403 commercial banks of Kathmandu valley, Nepal. The awareness index was prepared, and the binary logit model was applied for the econometric analysis. This study observed that the customers are positive towards the environmentally friendly practices of banks and ready to adopt the green banking practices. The research implies that in order to promote environmental sustainability, banks and financial institutions should be able to educate the customers about green banking practices and their benefits.

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