Green Banking Implementation: Evaluating its Impact on Customer Perspective

Abstract

The current condition of global environment is deeply concerning, with multiple interconnected issues causes serious threats to our ecosystems, human health, and sustainable development. With increasing environmental concerns, many industries have adopt sustainable practices in order to avoid some risk that may damaging our planet. In response, banking industries have adopt green banking practices,  prioritizing sustainability practices align with the environmentally friendly policy in order to reduce carbon footprint, address climate change and lower energy costs. Green finance is one of the key aspect of green banking where involves shifting their investment from non-eco-friendly companies to sustainable companies. This study investigates how green finance initiatives by banks influences customer perceptions, particularly in the terms of customer trust and loyalty.

           The methodology employed qualitative interviews with 11 customers from different generations of ING bank in the Netherlands and literature review as the supporting data. The study finds that green finance initiatives significantly impact customer trust and loyalty. Younger generations, including Generations Y and Z, tend to view green finance favourably, leading to increase trust and loyalty to their bank. On the contrary, Generation X perceives green finance less favourably, potentially lower their trust and loyalty to their banks.