A Factor analytic investigation of green banking adoption in customer’s perspective with special reference to Trincomalee campus

Abstract

Going green concept has become an obligatory trend within the global banking industry. The concept of green banking has motivated banks to introduce paperless, technology driven services while reducing environmental impact and to perform their role as a corporate citizen on sustainable development. It is necessary for banks to understand the demand side of green initiatives since the ultimate success or failures of such investments are influenced by perceived satisfaction of the customer. To achieve the goals of this research, the data were collected from convenience sample of 50 banking customers in Trincomalee Campus. The survey has used five (5) point Likert scale and 23 questions. The respondents provided the data by means of a close-ended questionnaire. Cronbach’s alpha scale was used as a measure of reliability. Its value is estimated to be 0.895. Sophisticated statistical model as ‘Exploratory Factor Analysis (EFA)’ has been used. The results show that Green Banking Adoption in Customer’s Perspective extracted from the analysis that together accounted 70.041 percent of the total variance. The results of factor score is Carbon Emission, Providing Service, Transaction Cost, Deposit Rate, Renewable Energy and Information Availability got the ranks of sixth, fifth, fourth, third, second and first respectively and constitute the key dimension of Green Banking Adoption of Customer Perspective. The study helps an insight into what banks should do, being environmentally proactive, to create a strong customer base in future.