© 2020 JETIR February 2020, Volume 7, Issue 2 Customer ...commonly known GB services i.e. ATM (Automatic teller Machine), POS (Point of sales), Tel Banking, Internet Banking, ECS

© 2020 JETIR February 2020, Volume 7, Issue 2 www.jetir.org (ISSN-2349-5162)

JETIR2002465 Journal of Emerging Technologies and Innovative Research (JETIR) www.jetir.org 395

Customer satisfaction towards Green Banking

(GB) Services

*Dr.Varsha Bihade

** Prof.Saylee Karande

*Dr.Varsha Bihade ,Professor , D.Y.Patil Institute of Management, Ambi Talegaon Pune,

**Prof.Saylee Karande, Asst.Professor, D.Y.Patil Institute of Management, Ambi Talegaon Pune.

Abstract:

Going Green is an initiative taken by banks for environmental friendly practices or ethical practices for

environmental sustainability. Green Banks are also called Ethical Banks or sustainable. Green Banking has

become a massive trend in banking sectors. The Green banking has encouraged banks to go for paperless

banking and use technology to reduce impact on environment. The perception of Customer and their

satisfaction is another vital factor that has to be taken into consideration before investment and

implementation of such Green services as they are the one who use this services. The purpose this research

paper is to find out the features of green banking and their relationship with customer satisfaction. For

banking professionals green banking involves the doctrines of sustainability, ethical loaning, conservation and

energy efficiency.

Key Words: Green Banking, Sustainability, paperless, Customer, Ethical

Introduction

Since the last decade, every common man is facing some or the other way problems that arise due to climatic

changes. Global Warming is now an international issue that is faced by every Nation. Small and steady steps

towards Greener Tomorrow and implementing environmentally friendly practices can bring a huge change.

The banking sector is the biggest in India and generally considered environmentally friendly sector relations

to the emission of pollution and emission. (Dharwal M. & Agarwal A. 2013). Until twentieth-century green

was just the color of money and not much was thought about the green or eco-friendly practices. But the

introduction of ATM (Automated Teller Machines) in 2001 brought drastic changes in banking services.

ATMs were the initiative taken by the Indian banks towards Green Banking which influenced the investors

and the customer towards Eco-friendly practices. Thereafter Banking Sector came up with many initiatives.

This research paper explores customers’ satisfaction over the various Green Banking (GB) areas like ATM

(Automatic teller Machine), POS (Point of sales), Tel Banking, Internet Banking, ECS (Electronic Clearing

Service), NEFT (National Electronic Fund Transfer ) Green Checking account, Green Money Market

Account, Green Mortgage, Green Loan, Green Home Loan, Green Remote Deposit, Green finance, Green

Bonds, Green Cards and many others.

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Literature Review

Bhanagade, (2011), propounded some of the competitive challenges in banking profitability, technology, risk

management, rural and social issues, HRM, corporate governance, transparency, and disclosures, etc. ‘Think

global and act local’ is the tactic forward according to him.

Dharwal & Agarwal (2013) studied that green banking is a key in mitigating the credit risk, legal risk and

reputation risk and the same is governed by the socio-economic status of the customer. The author had

suggested some green banking strategies like carbon credit business, green financial products, green

mortgages, carbon footprint reduction (paperless banking, energy consciousness, mass the transportation

system, green building), and social responsibility services towards society.

Dr.Nishikant Jha et al. (2014) had conducted research on A study of Green Banking Trends in India and

highlighted some steps for going green banking such as go online, use green checking accounts, use green

loans for home improvements, use power-saving equipment, use green credit cards, mobile banking

Vikas Nath et al.(2014) had international experience, review about Green Banking Practices and concluded

that the banks should change their routine operations through the adoption of paperless banking, online

banking, mobile banking, mass the transportation system, green cards made up of recycled plastic and

efficient use of resources. Banks should start to investigate low carbon technologies and develop new

sustainable products and services that will mitigate the risk of climate change.

T.Rajesh and A.S. Dileep (2014) concluded that Green Banking is an umbrella term referring to practices and

guidelines that make banks sustainable in the economic, environmental, and social dimensions. Green banking

can be an avenue to reduce pollution and save the environment aiding sustainable economic growth. Before

making the decision to finance a project, banks must see their environmental risks and ensure the project

players have environmental safety measures in their plans, including recycling facilities or smoke and gas

arresting units. A framework of incentives for responsible banks and disincentives for pollutants is an

essential element for the development of green banking.

Bibhu Prasad Sahoo et al (2016) identifies there is a significant difference in the usage of green products

across age groups and the age the groups who are not keen is due to lack of information so there is a need to

bring awareness among those age groups 2

Ms. Neetu Sharma et al (2015) studied the opinion and awareness of bank employees and customers as

regards the green banking concept in public and private sector banks.

Nath, Nayak, and Goel(2014) recommended for change in routine operations of banks by the adoption of

paperless banking, online banking, and mobile banking, and mass transportation the system, green cards made

up of recycled plastic.

Rajesh & Dileep (2014) studied the role of banks in sustainable economic development through Green

Banking activities. The study was based on secondary data obtained from the reports of various Banks,

various seminars and workshop information and other relative information published on the banks and other

internet sites. The study concluded that Banks also contribute to ecological footprint directly and indirectly

through investment/lending in their customer enterprises. Green banking can be an avenue to reduce pollution

and save the environment aiding sustainable economic growth. Before making the decision to finance a

project, banks must see their environmental risks and ensure the project players have environmental safety

measures in their plans, including recycling facilities or smoke and gas arresting units.




Objective of Paper

The main objective of this research paper is to work out the level (APIs) of satisfaction of bank customers

over the various services/functions that are being evolved under the GB and not to expound the particulars of

the GB services/ functions

Research Methodology

i. Scope of the study:-The focus of sampled enquires was the Main Branch of SBI in Pune

ii. Primary Data: Primary data has been collected through a structured questionnaire administered on

account holders/customers of SBI during the reference week i.e. 10th to 15th Feb 2020 covering bank

working days.

iii. Secondary Data: The sources of secondary data are various research journals, books, and bank

websites.

iv. Sampling Method: The sampling the method used for the study is “Experience Survey mixed of

Convenience-cum Judgment sampling” limited to users of Green Banking Services who were willing

to inform spontaneously over the questioning

v. Sample Size: The sample size for the study is based on experiences gathered in the survey which was

conducted in two parts. In the first part of the survey, it is observed that interviewing>80 account

holders on the overall perception about GB is the waste of time and money because an additional

interviewing lea to reverberations of answers to structured questions; and hence the sample size was

fixed near to that i.e. 83 customers having a bank account. It is understood from the first part of the

experience survey that the overall practice of the sampled customers(83) is mostly limited to

commonly known GB services i.e. ATM (Automatic teller Machine), POS (Point of sales), Tel

Banking, Internet Banking, ECS (Electronic Clearing Service), NEFT (National Electronic Fund

Transfer ), etc. having much concern about avoiding the use of papers.

vi. After completing the enquires from 83 sampled customers over such commonly known GB services,

the second part of the survey was instituted by focusing only those who were using

particular uncommonly known GB services like Green Checking account, Green Money Market

Account, Green Mortgage, Green Loan, Green Home Loan, Green Remote Deposit, Green finance,

Green Bonds, and Green Cards which are restricted to only particular users/customers. In such a case,

only ten customers were interviewed under each GB Category of services

vii. Data Collection Mode: A structured questionnaire with close-ended questions was used. The reason

for using close-ended questions was to get objective answers from the respondents. While filling the

structured questionnaire, the help of student investigators was sought.

viii. Data Mapping: An each sampled the customer was asked to quote an Average Perceive Intensity

(API) of satisfaction level in % over given GB service under the rule that zero % means “Nil”

satisfaction level and 100% mean “full “ Satisfaction level and any % in between these two extremes

unveils the level of satisfaction in the percentage towards given GB services. By using reported data

by the sampled customers, the ultimate Average Perceived intensity (APIs) of satisfaction is worked

out in %. This mapping technique is 100 point scaling a method based on the five-point Likert scaling

technique (Bhandarkar Wilkinson ,2015)

Features of sampled Population (n=83)

It is an obvious part of any survey to know the feature of the sampled population confining the variables influencing the data. In respect of Green-banking - as it is learned from the experience survey- the most important variables influencing are educational levels, family size, occupational variances, and income levels. All these variables are linked




with Green-banking (Dr.Nishikant Jha et al. 2014) and this hypothesis is confirmed by the bank officers. The following text hence delineates with the same.

i. Level of Education

T-1: Educational Level of sampled (n=83) population

Sr.No

Educational Levels

% to total (n=83)

Weightage Total score

i. Graduate/PG or similar (Highly educated category)

37 5 185

ii. Undergraduate 12 4 48

iii. Up to HSC 19 3 57

iv. Up to Vii 11 2 22

v. Illiterate 4 1 4

Total 83 X 316

Source: - Field Survey

Positive Bench Mark for GB services is 415(83 sampled customers x 5=415) under the assumption that when all the

customers are in the highly educated category, the development /promotions of GB services endure accelerated

speed. The T-1 shows that the duly weighted educational score level is 316 which is 76% of the benchmark (415). It

indicates that by and large, an educational level of the sampled customers is conspicuously sound, and if they are

properly trained may go for use of GB services wisely (Sharma, N. et al. (2014),

ii. Family Size

T-2: Family size of sampled customers (n-83)

Sr.No. Family Size N=83

1 Up to 3 23

2 3-5 34

3 5 + 26

4 Total 83

5 Mean 5.7


An average family size (5.7 Mean) is conventionally resonating Population mean size under the GoI

Census

iii. Occupation

T-3: Occupational features of sampled customers (n=83)

Sr. No Predominated Economic Sectors % to total (n=83)

1 Primary 14%

2 Secondary 33%

3 Tertiary 53%

Total 100%


It is seen from T-3 there has been Overwhelming presence of sampled customers in the Tertiary sector(53%) followed

by the fairly large presence in secondary(33%) and a comparatively smaller presence in the Primary sector(14%); such




occupational compositions are suggestive of the predominance of bank account holders/customers emerging from

industry, commercial and service categories

iv. Income

T-4: Income Level of the sample customers (n = 96 ) using Green Banking Services

Sr.

No.

Annual-Income Range (Rs. in lakhs)

N=83

1 Rs. Up to 3 12%

2 Rs. 3-5 12%

3 Rs. 5-10 24%

4 Rs. 10 and above 52%

Total 100%


T-4 unveils that the Mean annual income of the sampled customers are 17.2 lakhs coupled with 52%

customers falling annual income range >Rs 10 lakhs and the same hints that the fairly large i.e. 52 % sampled

customers may alone instrumental enough in mobilizing banking funds besides the rest 58% falling in the income

range <Rs 10 lakhs.

Motivational Inputs

T-5: What motivates you to use GB

Services to which you are accustomed?

s.no Motivational

Factors

Customer

Response

1 Time economy 46%

2 User Friendliness 33%

3 Cost Effectiveness 30%

4 Techno savvy 15%

5 Core benefits 23%


Note:-Multiple answers

The sampled Customers are in varying proportions crediting motivational Factors as instrumental to use GB

services ; thus 46% crediting to Time Economy,33% User Friendliness,30% Cost

Effectiveness,15% Techno savvy, and 23% credit to Core benefits(T-5)

Satisfaction level of account holders

This part of the paper evaluates the satisfaction levels of the customers over the green banking services which

are commonly known and used (vide T-5) and the services which are uncommonly known and used by few

a) Commonly used GB services




T-5: APIs of satisfaction in %s over the commonly used GB services by sampled customers

Green Banking Services Number of Users out of

sample (N=83)

APIs of satisfaction in %s

ATM (Automatic teller Machine), 79 56%

POS (Point of sales)- 23 66%

Tel Banking- 45 78%

Internet Banking – 23 47%

ECS (Electronic Clearing Service ) 78 39%

NEFT (National Electronic Fund Transfer )- 56 46%

RTGS (Real Time Cross Settlement) and 37 67%

CDs (Certificate of Deposits) 23 34%

Green Car Loan 25 37%

Green saving account 35 28%

Cash Depositing Machine 27 85%

Green Credit/Debit Card 49 88%


T-5 shows that APIs of satisfaction in %s over the ATM services for 83 sampled customers are 56%, Over

POS for 23 sampled customers are 66%, Over Tel Banking for 45 sampled customers are 78%, Over Internet

Banking for 23 sampled customers are 47%, Over ECS for78 sampled customers are 39%, Over NEFT for 56

sampled customers are 46%, Over RTGS for 37 sampled customers are 67%, Over CDs for 23 sampled

customers are 34%, Over Green Car Loan for 25 sampled customers are 37%, Over Green saving account for

35 sampled customers are 28%, Over Cash Depositing Machine for27 sampled customers are 85% and Over

Green Credit/Debit Card for49 sampled customers are 88%.

b) Un-Commonly used GB services: - Such services are normally used by businessmen who are having an

intensive knowledge of the same. The nature of these services is succulently delineated ahead since they are

unknown to many (Bibhu Prasad Sahoo et al 2016)“

i. Green Checking account:-It facilitates customers to withdraw or deposit online as many checks as he

needs. Under this there is no need to keep minimum balance; so also the account holder gets a

higher rate of interest

ii. Green Money Market Account: It offers taxable Interest but >saving account, the account holder is

permitted to transfer his fund online amidst banks to facilitate money market deals like share-trading,

dividend receipts, etc.

iii. Green Mortgage:- Loan is given against the mortgage of ecofriendly assets like solar plant, e-vehicle,

e-housing, e-solar operated irrigation schemes, etc.

iv. Green Loan:- It is given to create eco-friendly assets like above at lower interest than what is charged

on Green Mortgage

v. Green Home Loan: - Loan is given to construct eco-friendly houses whose energy supply is through

the solar-powered, where the use of wood avoided, where the windmill is used.. and so on

vi. Green Remote Deposit:-This facility is available to Business Customers having an account with the

bank




vii. Green Cards: - Bank donates the funds to NGOs for using the same on eco-friendly projects

/activities

viii. Green Bonds:- These are floated for the spending on eco-friendly projects approved/supported by the

banks

ix. Green finance:-It is given to eco-friendly project generating low carbon economy

The queries over the above GB services/functions were made with only ten users in the category under

question; the sample size of ten customers using GB service is found logical since an additionally interviewed

number of customers were found reverberating the more or less similar replies and hence 10 + customers were

eschewed or not interviewed

T-6: APIs of satisfaction in %s over the un-commonly used GB services by sampled customers

Sr.No. Green Banking Services Number of identified

Users out of sample (N=83)

API of satisfaction in %s

1 Green Checking account 10 87%

2 Green Money Market Account: 10 84%

3 Green Mortgage:- 10 88%

4 Green Loan:- 10 87%

5 Green Home Loan: 10 88%

6 Green Remote Deposit 10 79%

7 Green finance:- 10 88%

8 Green Bonds:- 10 98%

9 Green Cards: 10 78%


n the above table, the users are duly identified on the basis of their repeated use of the GB services under

questions. API levels of satisfaction in % are found fairly satisfactory for them but the same are bearing varied

intensities amongst Green Checking account (87%), Green Money Market Account (84%), Green Mortgage

(88%), Green Loan (87%), Green Home Loan (88%), Green Remote Deposit (79%), Green finance, (88%),

Green Bonds (98%) and Green Cards (78%).

For Non Users of Green Banking from the sample

T-7 Why do you reluctant to use Green Banking services

Sr.No Reasons for non-usage Customers

1 Lack of Knowledge 53%

2 Insecurity feel 14%

3 No Demo is made available 13%

4 Obsession to use 31%

5 Cumbersome procedure to initiate use 34%

6 Small Dealings 38%

7 Lack of documentary evidence at hand 23%





Multiple answers do not tally with 100%.

Findings

i. An average annual income of the sampled customers is 17.2 lakhs coupled with 52% customers falling

annual income range >Rs 10 lakhs and the same hints that the fairly large i.e. 52 % sampled customers

may alone instrumental enough in mobilizing banking funds besides the rest 58% falling in the income

range <Rs 10 lakhs.

ii. The sampled Customers are in varying proportions crediting motivational Factors as instrumental to

use GB services; thus 46% crediting to Time Economy,33% User Friendliness,30% Cost

Effectiveness,15% Techno savvy, and 23% credit to Core benefits(T-5)

iii. Satisfaction Level over commonly used GB services:-APIs of satisfaction in %s over the ATM

services for 83 sampled customers are 56%, Over POS for 23 sampled customers are 66%, Over Tel

Banking for 45 sampled customers are 78%, Over Internet Banking for 23 sampled customers are

47%, Over ECS for78 sampled customers are 39%, Over NEFT for 56 sampled customers are 46%,

Over RTGS for 37 sampled customers are 67%, Over CDs for 23 sampled customers are 34%, Over

Green Car Loan for 25 sampled customers are 37%, Over Green saving account for 35 sampled

customers are 28%, Over Cash Depositing Machine for27 sampled customers are 85% and Over Green

Credit/Debit Card for49 sampled customers are 88%.

iv. Satisfaction Level over un-commonly used GB services:-APIs level of satisfaction in % are found

fairly satisfactory for them but the same are bearing varied intensities amongst Green Checking

account (87%), Green Money Market Account (84%), Green Mortgage (88%), Green Loan (87%),

Green Home Loan (88%), Green Remote Deposit (79%), Green finance, (88%), Green Bonds (98%)

and Green Cards (78%).

v. There were many reasons over the reluctance to use GB services; thus 53 % of sampled customers

were reluctant due to lack of knowledge,14% bear Insecurity feel,13% allege that No Demo is made

available,31% perceive Obsession to use,34% find Cumbersome procedure to initiate use,38% has

Small Dealings and 23% sense Lack of documentary evidence at hand

Suggestions and Recommendations

i. Though all are aware of Green Banking, most of them are not using it because of lack of knowledge ii. Customers should be made aware of green banking services through media and other sources

iii. SBI should try to educate its customers on green banking and its benefits. iv. Customers should be assured of the security of green banking.

v. Most of the footfalls in Banks are for the deposits, they should be encouraged to use deposit machines vi. The bank should train employees; so that they can give the demo on how to use green banking

services

Conclusion

Customers should be educated on why they should prefer green banking. Changing the environment,

digitalization everywhere and adopting new technology should be on priority. Most of the customers, though

willing are not aware of how to use it. India is the largest in population that would be a challenge to the

banking industry in educating all the customers over the use of GB services.




References:-

1. Bhanagade, B. D., 2011. Globalization and Indian Banking: Issues, Challenges & Strategies,

Economic Challenger, July-September, 52 (13). Pp.15-20.

2. Bhandarkar Wilkinson (2015) , Methodology And Techniques Of Social Research ,Himalaya

Publishing House.

3. Dharwal, M., & Agarwal, A. (2013). Green Banking: An Innovative Initiative for Sustainable

Development.

4. .Dr. Nishikant Jha et al., A Study of Green Banking Trends In India, ABHINAV International monthly

Referred Journal of Research in Management and technology.

5. .Vikas Nath et al. (2014), Green Banking Practices –A Review, Impact Journals International Journal

of Research in Business Management, ISSN(E):2321- 886X,ISSN9P):2347-4572,Vol.2,Issue 4,Year-

April2014,

6. Bibhu Prasad Sahoo et al (2016)“Green Banking In India: Problems And Prospects” Vol.4 (Iss.8)

7. Ms. Neetu Sharma et al (2015) "A study on customer’s awareness on Green Banking initiatives in

selected public and private sector banks with special reference to Mumbai" PP 28-35, n.d

8. Nath, V., Nayak, N. & Goel, A. (2014). Green Banking Practices – A Review. International Journal of

Research In Business Management, Vol.2, No. 4, PP 45-72

9. Sharma, N. et al. (2014), A Study on Customer’s Awareness on green Banking Initiatives In Selected

Public & Private Sector Banks with Special Reference to Mumbai. IOSR Journal of Economics &

Finance, PP 28-45.

10. Rajesh & Dileep (2014), “Role of banks in sustainable economic development through green banking”

International Journal of Current Research and Academic Review, Vol. 2(12).


Documents

© 2020 JETIR February 2020, Volume 7, Issue 2 Customer ...commonly known GB services i.e. ATM (Automatic teller Machine), POS (Point of sales), Tel Banking, Internet Banking, ECS