Overcoming Barriers to Green Banking Adoption: Insights from Innovation Resistance Theory

Abstract

Many companies utilize buildings and banknotes, impacting environmental concerns. Green banking technology, which facilitates online transactions to minimize environmental impact, has not been universally adopted. This study investigates resistance among green banking technology users. Online questionnaires were distributed to 225 users in Indonesia. The data were analyzed using the partial least squares with descriptive analysis regarding the functional and psychological barriers. Functional barriers show obstacles that arise when the function of green banking does not meet the user's ideal expectations. Meanwhile, psychological barriers refer to psychological and practical barriers such as tradition, image, values, and risks. The results show that green banking users have a lower functional barrier role than psychological barriers. Users see from the value side GBT compared to the psychological side, such as images and habits. Users prioritize features and functions over habitual factors. Thus, the findings of this study contribute to our understanding of the factors influencing the adoption of green business practices through green banking technology. This study also recommends that banks optimize their features and functions to encourage users to adopt banking products that support green businesses.