Green Banking Adoption through E-Banking Service Quality: An Empirical Study of Consumer Intention

Abstract

Green banking links environmental responsibility with banking products and the delivery of financial services. Digital statements, electronic receipts and paperless transactions may reduce dependence on physical documentation, but consumers’ willingness to adopt these practices can also depend on how they evaluate green banking products and the quality of the electronic channels through which services are delivered. This study examines consumer intention to adopt green banking in relation to Green Product Dimensions (GPD), E-Banking Service Quality (EBSQ), Environmental Concern (EC) and Digital Literacy (DL). The revised framework treats all four constructs as direct predictors and excludes interaction terms and moderation hypotheses. A quantitative questionnaire-based survey yielded 796 valid responses from 943 responses received, after 147 cases were excluded during data screening. The reported structural estimates show that GPD is positively and significantly associated with intention to adopt green banking (β = 0.397, t = 13.653, p < 0.001), as is EBSQ (β = 0.303, t = 9.847, p < 0.001). The reported direct paths from EC (β = −0.008, t = 0.285, p = 0.776) and DL (β = 0.047, t = 1.554, p = 0.120) are not statistically significant. The results therefore identify product-related perceptions and electronic service quality as the two supported predictors in the supplied analysis. Because the available estimates were generated for a larger model that included interaction terms, the reduced direct-effects model must be re-estimated in SmartPLS before its final R², effect sizes, predictive statistics and model-fit indices are reported. The study contributes a focused account of the factors associated with green banking adoption intention and offers practical guidance for banks seeking to make green services clear, dependable and convenient.