Green Banking’s role in the Swedish banking sector

Abstract: Global warming is a growing problem, and climate changes are now moving toward a state that is greater than usual. Various industries and customers’ needs to change their buying behavior to save our planet. As a key performer in society, the bank sector is evolving and changing towards a greener future. The changes have given birth to the term Green Banking. The new concept can be defined as an umbrella term that refers to the practices that make banks sustainable and green. The concept includes various green products like green bonds, green stocks, green loans, and green mortgages. Various new demands, threats and risks have arisen with the recent changes that stakeholders need to be aware of and be prepared to face. Changes are required in order to help the environment but might not be supported or welcomed by all of the bank’s stakeholders. A difference in view can be problematic for the banks and may affect their attractiveness. This problem or question influenced me to conduct this study.The purpose of this study is to examine the role of Green banking for Swedish banks. Is the concept increasing the bank's attractiveness in terms of customer attractiveness, or is the concept dissatisfying the bank´s customers. Green Banking is a fairly new concept, and little research has been done on this concept in the field of banking. Some studies were found in the field of Green Banking, but only one of them investigated customer attractiveness, and that study was conducted in Bangladesh. Therefore, this study is limited to Sweden and the Swedish bank sector. The four theories, Theory of planned behavior, Ecologically conscious consumer behavior, Diffusion of innovation theory and Cumulative prospect theory, were selected to analyze the study's findings.A qualitative research method was used in this study, and data collection was conducted through interviews. The four Swedish banks, SEB, Swedbank, Länsförsäkringar and Nordea, were selected for the data collection. Besides the collected data were several earlier studies chosen to get an overview of the area.The interviewed banks received the same question, and the answers were overall similar, but some responses differed between the banks. All the interviewed banks have good experiences with the Green Banking concept, and most of the bank's customers are well integrated and find the new concept attractive. The concept has mediated challenges for both the bank and its customers, but increased understanding of the changes makes it easier for the banks and their stakeholders.Based on the findings, the analyzis and the chosen theories did the research came to the conclusion that the Green Banking concept is increasing the attractiveness of the Swedish banks. There are still challenges and obstacles with the concept and probably much more to learn, but the research also suggests that Swedish banks should practise Green Banking. It's not only the eco-friendliness of the concept that is compelling but also to stay attractive on the market.