Study on Customer Usage of Green Banking Initiatives: Evidence from a Private Sector Commercial Bank in Sri Lanka

Abstract

Today, the world economy is facing a massive challenge in solving environmental problems and their impact on daily business. Banks are introducing green banking services over the recent years in Sri Lanka. However, not many important findings have been made in the background research on Sri Lanka's green banking practices and customers' use of green banking resources. Therefore, the purpose of this study is to measure the impact of green banking practices on customer usage of green banking services of the bank. To accomplish this goal, quantitative research has been done collecting primary data from 75 randomly selected customers in the 8 branches of ABC Bank PLC in the Colombo South region Sri Lanka. A structured a questionnaire has been used to collect required data and data analysis has been conducted using correlation and regression analysis. The research results show that the green banking process has a positive and a significant impact on the overall use of green banking services by customers. The study also found that green processes and procedures, green loans, environmental policies and goals, and green products and services have had a significant impact on the customer usage.