Factors Influencing Customers’ Expectation Towards Green Banking Practices in Bangladesh

Abstract

Green banking, considered as sustainable banking practices, has created incessant buzz among banks and financial institutions which are consistently seeking an exhaustive framework to sustain in dreadful environmental changes. Attachments to green strategies upraise customers’ interests and expectations on enterprises’ environmental responsibilities. The article dwells on addressing the factors impacting customers’ expectations towards green banking practices from the perspective of banking industry in Bangladesh. Total 246 samples have been finalized from target population using simple random sampling. The survey has used five (5) point Likert scale and 23 dimensions are identified which are summarized into five factors by using factor analysis. After analysis, it has been found that information availability and customer needs, spirit of ethics and high yield savings, energy efficiency, product benefits as well as integration and personalization- these five prominent factors are responsible for influencing customers’ expectations towards green banking practices in Bangladesh. The study offers an insight into what banks should do, being environmentally proactive, to create a strong customer base in future.

Keywords: Green Banking, Customer Expectation, Sustainable Business