Determinants of Customers' Behavior for the Adoption of Green Banking Products and Services: UTAUT Model-Based Explanation

  • Nisar Ahmad Associate Professor, Hailey College of Commerce, University of the Punjab, Lahore, Pakistan.
  • Bilal Nafees Assistant Professor, Division of Management and Administrative Sciences, UE Business School, Lower Mall Campus, University of Education, Lahore, Pakistan.
  • Hasan Kamran Research Scholar, Hailey College of Commerce, University of the Punjab, Lahore, Punjab, Pakistan.
Keywords: Green Banking, Customer Behavior, UTAUT Model, Environmental Values, Emotional Values, Conditional Values


Increasing environmental concerns worldwide have spurred individuals and firms to emphasize eco-friendly practices in every walk of life. This study investigates the implication of the UTAUT model in the adoption of green banking products and services by customers in Pakistan. This study also explores behavioral intention as a mediator between explanatory variables and customers' behavior for the adoption of green banking practices. This quantitative study used convenience sampling and structured self-administered questionnaires for data collection. Structural Equation Modelling (SEM) was employed on the data collected from 305 customers of commercial and the results revealed a significant impact of performance expectancy, effort expectancy, enabling situation, conditional values, and emotional values on customers’ intention and behavior toward green banking practices. Moreover, facilitating conditions and social influence positively affect customers’ adoption of green banking products and services. Behavioral intention also fully mediates the link between performance expectancy, conditional values, emotional values, and usage behavior. Thus, bank management should consider these factors when creating green banking products and services. The current study focused on the customer perspective only, undoubtedly, it is very pivotal to understand the behavior of customers about green banking. But for a holistic coverage of the factors influencing the adoption of green banking, future research might focus on varied perspectives including bank management, bank employees, and SBP by using both quantitative and qualitative methods.