Page 350 - Ebook HTKH 2024

FACTORS INFLUENCING INDIVIDUAL CUSTOMERS'

INTENTION TO USE GREEN BANKING SERVICES: TOWARDS A
SUSTAINABLE CONSUMER MARKET

Vu Hoang Duc 165 , Do Thi Van Anh 166 , Tran Thi Huong Ly
167

Abstract: Green banking not only serves as a financial bridge among stakeholders but also acts
as a reliable partner in the journey towards the goals of a "Green Economy and Sustainable
Development." This study employs the Structural Equation Modeling (SEM) method, based on the
Theory of Planned Behavior (TPB). The results show that factors such as environmental concerns,
confidence in benefits, promotional communications, trust, and motivation influence the intention to use
green banking services. Additionally, the study identifies the role of promotional communications in
reinforcing positive attitudes towards using green banking products and services. The research provides
valuable insights for policymakers and commercial banks in developing and promoting the use of green
banking services, aiming towards a sustainable consumer market.
Keywords: Green banking, green credit, sustainable development, attitude, perception

1. Introduction

In recent years, one of the global challenges faced by nations is the irreversible
threat of climate change, along with issues of pollution and poverty in many regions.
In this context, many countries are transitioning from traditional brown economic
models to environmentally friendly green economies, with strong involvement from
financial institutions. The role of banks in this process is to unlock private investments,
bridge the gap between supply and demand, and comprehensively assess risks and
evaluate projects from both economic and environmental perspectives [11].

The "green banking" initiative and the effective implementation of green capital
flows will benefit banks, industries, and the economy. Green banking not only promotes
the greening process within industries but also enhances the asset quality of banks in the
future. Climate change can directly or indirectly impact banks through the assets they
finance, making this issue a particular concern for banks. The problem of stranded assets
or policy risks related to environmental requirements is a prime example of the negative

impact in the financing sector related to climate change. Such scenarios can lead to risks
for commercial banks. Therefore, the trend of greening capital flows through the
provision of green financial products and services is becoming a standard in the current
operations of commercial banks [30].
At COP26, Vietnam committed to gradually reducing emissions to achieve net-
zero emissions by 2050. To achieve this goal, the demand for investment capital in
environmental impact mitigation projects will increase significantly, with green
financial solutions such as funds and bonds. Simultaneously, to encourage the

consumption of green products and services, the issue of developing green credit has
been raised. This new and fundamental direction aims to promote the market

165 Hanoi Open University, Email: ducvh@ehou.edu.vn
166 Hanoi Open University
167 Hanoi Open University
342