Digital Banking and Green Banking Adoption: The Role of Customer Awareness Among Bank Customers in Chennai

Author

Chandrika C. A. S., Dr. G. H. Kerinab Beenu


Abstract

 Digital banking is typically adopted for convenience, yet it can also support environmentally responsible banking by reducing paper-based documentation and physical branch visits. This study examines whether greater adoption of digital banking is associated with greater adoption of green banking practices among bank customers, and which factors best explain green banking adoption. A descriptive, quantitative, cross-sectional design was used. Primary data were collected through a structured questionnaire from 100 bank customers in Chennai selected by convenience sampling. Constructs (digital banking adoption, green banking awareness, green banking adoption and customer satisfaction) were measured with five-item, five-point Likert scales. Data were analysed using percentage analysis, Pearson correlation, multiple linear regression and Chi-square tests. Digital banking adoption and green banking adoption were significantly and positively correlated (r = 0.651, p < 0.001). Digital banking adoption and green banking awareness together explained 64% of the variance in green banking adoption (R² = 0.64, F = 86.45, p < 0.001); awareness was the stronger predictor (β = 0.53, p < 0.001) compared with digital banking adoption (β = 0.32, p = 0.001). Awareness was significantly associated with monthly income and occupation, but not with age, gender or banking duration. Only 6% of respondents named environmental sustainability as their main motivation for using digital banking; time saving (32%) and convenience (26%) dominated. The findings suggest that digital banking provides a pathway to green banking, but that customer awareness of the environmental dimension is what helps convert digital usage into green behaviour.


Keywords

Digital banking, Green banking, Banking adoption, Electronic banking, Sustainable banking, Consumer behaviour, Customer awareness



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