Ethical banking: will it be millennials choice?

Abstract

The business Banking has been blamed by many including Academia and Civil society for neglecting its Social-Environmental responsibilities. In their aspiration to make high financial gains, banking overlooked its responsibility to Society and Environment. Global Financial crisis made people to relook at the role played by banks. A public outcry had been developing demanding Banks to adopt Ethical practices in their business operations. To achieve sustainable development through finance industry requires a different banking model. Banks are required to move away from profit only mentally to socio- environmentally centered mentality. Banks must aim for triple bottom line. Need for an alternative banking model arose. Ethical Banking was preferred by many as the alternate model. The Concept of Ethical Banking revolves around the Economic, Social and Environmental responsibilities. Ethical banks seek progress in all three areas of Economy, Society and Environment. The Customer base of the present-day banks are being increasingly dominated by the Millennials generation. Their preferences are strongly influenced by their values. They are ethically oriented. Under these circumstances the main aim of this study is to examine whether Ethical Banking can be Millennials choice of banking model through a literature review. The significance of the study is to find out how Millennials will accept Ethical Banking as their chosen banking model, now and in the future.