Green banking practices and customer satisfaction-way to green sustainability

Abstract

The global environmental concerns have driven sustainable practices in several industries, including banking. Therefore, this paper is an endeavour to examine the relationship between green banking and customer satisfaction. The study identified four pivotal variables and examined how digital banking, green infrastructure, green loans and services affect consumer satisfaction in select public and private sector banks. The study used cluster sampling technique and sample was taken systematically from each cluster selected using a comprehensive research framework. The data show that digital banking, green services, and green loans positively and significantly affect customer satisfaction, while green infrastructure does not. The study found that privacy does not mediate green infrastructure and green loan relationships with consumer satisfaction. The study’s results have significant ramifications for both the banking sector and government, underscoring the crucial role of green banking in enhancing consumer happiness. As environmental consciousness continues to increase, this might potentially result in heightened customer satisfaction and eventually contribute to improved customer retention for banks. The present study also endorses India’s digital agenda by promoting digital and sustainable banking practices.