A Study on Factors Affecting for the Customers’ Acceptability on Green Banking Products in Sri Lanka

Abstract

Green banking promotes environmental-friendly banking practices to reduce carbon footprint from banking activities. In recent years, both academics and banking professionals are paying more attention towards the green banking concept due to its significant influence on environment management in banking context. In Sri Lanka, banking sector started to practice the green banking concept from 2013 onwards. But the problem is, although there are so many convenient facilities and benefits available with green banking still the acceptability for green banking products is low in Sri Lanka. Thus, this study aims to investigate factors affecting for the customers’ acceptability on green banking products. Total banking customers are considered as the population and sample size was taken according to the Morgan table. Data were collected by distributing a structured questionnaire among the sample of 340 banking customers. Green product acceptability has been considered as the dependent variable and green product awareness, green benefits, green perceived value and green product security & privacy have been considered as independent variables. Collected data was analyzed through correlation analysis and multiple regression analysis. The results indicate that there are significant positive effects of green product benefits, green perceived value and green product privacy & security on the customers’ acceptability while there is a significant negative effect of green product awareness on the customers’ acceptability on green banking products in Sri Lanka. Findings of this study will benefit to management of banks to identify the most affecting factors for the customers’ acceptability and to take measures to promote the concept to increase the consumer acceptability.