Adoption of Green Finance for Eco-friendly Banking – An empirical study on Environmental Impact of Digital Banking

Abstract

With environmental deterioration challenges and a severe decline in natural resources, the need for involvement in environment-friendly practices has increased a lot. To avoid environmental detrition companies need to be socially responsible and avoid pollution causing by the companies and wastages. As the achievements in business development are based on stakeholders like customers, communities, suppliers, employees, and other stakeholders. Green financing is implemented to be socially responsible, accountable to environment and itself. The objective of green financing is to be eco-friendly, banking sector are highly adopting digital technologies for implementing green financing for conservation of natural and energy resources. The ultimate goal of the research is to analyse the challenges in implementing green finance, to establish the opportunities in digitalization of banking systems, to evaluate the impact of green finance on profitability and sustainability of banks. The research analyses with quantitative analysis using SPSS version 23.0, through survey assessment, gathering primary data from organization managers and CEO. A structured questionnaire survey is prepared, segregated, and distributed to the respondent.  Purposive sampling approach is used for quantitative analysis and 218 responses are obtained. Correlation, descriptive statistics, mean, chi square and ANOVA analysis are used in the research to predict the outcome. The result reveals that there is a positive impact for sustainability of environment for implementing green financing in banking sector.