Journal of International Commercial Law and Technology
2025, Volume:6, Issue:1 : 319-326 doi: 10.5281/zenodo.17797534
Original Article
The Role of Green Finance Practices in Enhancing Customer Trust and Loyalty: An Empirical Analysis
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1
Assistant Professor, Department of Commerce, School of Open Learning (DDCE) University of Delhi,
2
Assistant Professor, School of Business, UPES, Dehradun, 248007
3
Assistant Professor, Management Department [Pursuing PhD, MBA (Fin), BBA (Fin)], Acharya Institute of Graduate Studies, Bangalore
4
Associate Professor, NSHM Business School, NSHM Knowledge Campus, Kolkata Group of Institutions (Autonomous),
Abstract

The findings of this research work reveal how green financing banking practices have become an essential approach towards promoting sustainability in the financial industry. Results of the research show how green financial practices improve a bank's eco-friendly image, which in turn encourages customer loyalty towards such green initiatives. While such practices also help build trust and loyalty amongst customers in sustainability efforts, this trust does not directly translate into increased green loyalty. The results also provide us with important insights for policy-makers, financial institutions, and research aiming to promote green financial practices and encourage sustainable consumer participation within the financial sector. Green financial practices are viewed as an innovative approach that encourages socially responsible behaviour within society. Such practices are also regarded as a benchmark for evaluating and enhancing a financial institution's overall performance." These findings carry practical significance for financial institutions all across the world, thus highlighting the need to prioritize environmental initiatives as a key factor in shaping customer decisions. 237 respondents were surveyed to explore the factors that determine the role and impact of green finance practices in enhancing customer trust and loyalty. The study concludes that green finance practices have a significant impact on enhancing customer trust and loyalty.

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