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

Abstract

The objective of the current study was to design and test a conceptual framework for examining the drivers of customer intentions to use sustainable banking practices and services. This research applied the theory of planned behaviour, adding environmental knowledge (ENK) as a construct in addition to its fundamental variables. The primary data was acquired using a field survey method from a cross‐sectional sample of 207 Indian bank customers. Covariance‐based structural equation modelling technique was employed to test the study model. The findings demonstrated that one's attitude towards sustainable banking services is significantly influenced by one's ENK. No evidence of a significant mediation function for attitude towards sustainable banking services was found, which would have provided empirical support for the indirect relationship between ENK and purchase intentions. The findings also confirmed that purchasing intentions had a significant impact on actual behaviour. In particular, female bank customers showed higher levels of effects of consumer perceived efficacy and control over availability on buy intentions. The findings imply that bank managers should employ a sensible combination of old and modern communication channels to emphasize the value of a pollution‐free environment to the public.