Green banking adoption in Pakistan: the UTAUT model augmented with green consumption values, environmental concerns, and collectivism culture

The banking industry has received criticism for being one of the major contributors to climate change, either directly or indirectly. In response to this, the concept of “green banking” has emerged as a way to counteract the negative impact that banks are inflicting on the environment. However, there is little research on green banking adoption from customers’ perspectives in emerging countries, particularly Pakistan. Therefore, the current study has explored and examined the different factors that influence customers’ intention to adopt green banking and afterwards use behavior by applying the unified theory of acceptance and use of technology. In addition, customers’ green values and collectivist culture were incorporated into the unified model to determine the most influential factor driving green banking proliferation. The study was conducted in Lahore, Pakistan, with the participation of 305 private bank customers. The empirical findings revealed that facilitating conditions and performance expectancy are the most significant driving factors for green banking proliferation, followed by emotional and conditional values, social influence, and effort expectancy. Surprisingly, a country with a 97% Muslim population believed in a collectivist national culture and a joint family system showed an insignificant moderating effect of collective culture on relationships. Bank managers, policymakers, and researchers should take into account these factors while designing and developing green banking products/services and policies to promote green banking proliferation in mainstream markets. The study provides novel theoretical insights on green banking adoption from customers’ perspectives and guides future research in this field.