The role of customers’ awareness towards the sustainable development goals (SDGs) of banks on their behavior

Abstract

Banks and sustainable development have lately gone hand in hand. Of late, banks have focused on sustainable management in order to improve their environmental footprint, to eliminate financial risks, to promote social issues, and to exploit new opportunities. The sustainable development management of organizations attracts new customers over and above conventional institutions thus leading to greater market share and increased revenues. This paper aims to examine if and how sustainable development goals (SDGs) adopted by banking institutions play a role in customers’ decisions and behavior. The way that banks, SDGs, and sustainable image affect customer behavior, attitudes, trust, loyalty, satisfaction, and perceived fair pricing policy is assessed. To this end, 1084 questionnaires were collected and the PLS-SEM method was utilized. The findings show a positive relationship between the stance of banks relating to SDGs and customer trust, loyalty, and perceived fair pricing policy. Finally, the SDGs adopted by banks are an important strategic tool which strengthens relationship with their customers.

Evaluation of the Benefits Generated by Sustainability 4.0: A Study of the Perception of Banking Sector Customers

“…Customers, being a crucial part of the stakeholders in the banking sector, have their personal beliefs and values incorporated into their consumption preferences [40]. This perspective gains relevance when observing the notable fragmentation between new and traditional services from the customer's point of view.…”

Understanding the sustainable banking practices: Empirical evidence from an emerging economy

“…Today's environmental catastrophe is mostly the result of unsustainable corporate activities, including production, processes, operations and services, as well as an excessive level of consumption (Stauropoulou et al., 2023). Due to overpopulation and unsustainable consumption habits, environmental concerns are particularly acute in nations with larger population densities, such as India (Bose & Khan, 2022).…”

“…Organizations in both established and developing economies face a variety of difficulties when conducting business in today's highly competitive environment (Stauropoulou et al., 2023). The incorporation of sustainability into the company's current and future policies is among the most important and difficult problems.…”

“…Banks all around the world are working really hard to integrate sustainability goals into general purposes in an effective manner. The banks are introducing and implementing the information technologies and systems in a sustainable manner, from service design through the final service delivery to customers (Eliwa et al., 2021; Stauropoulou et al., 2023). Throughout time, customers’ purchasing tastes have changed, and they have begun to display ethical behaviours by favouring environmentally friendly goods and services as well as firms that share their values (Bose & Khan, 2022).…”

“…In India, the banking sector has been making earnest attempts to become more environmentally friendly in response to growing concerns about environmental sustainability on a worldwide scale (Bose & Khan, 2022). Although banks are not seen to have a direct negative impact on the environment, they do claim that their excessive use of paper, significant energy use and unsustainable customer behaviour have indirect effects (Stauropoulou et al., 2023). The increased customer adoption of information‐technology‐enabled financial services over conventional branch banking is one of the key strategies for promoting sustainable banking (Kumar & Prakash, 2020; Suchodolski et al., 2022).…”