ANALYSIS OF GREEN BANKING, LEVEL OF FINANCIAL LITERACY, AND ENVIRONMENTAL AWARENESS TOWARDS CUSTOMER LOYALTY OF SYARIAH BANKS WITH CUSTOMER SATISFACTION AS A MEDIATION VARIABLE
Main Article Content
Abstract
The shifting business paradigm demands that the Islamic banking industry focus not only on profitability but also on actively contributing to ecosystem sustainability through the adoption of green banking practices. Furthermore, internal customer factors, such as financial literacy and ecological sensitivity, are crucial determinants in responding to the sustainability values offered by banking institutions. This study aims to analyze the conceptual framework linking green banking implementation, financial literacy, and environmental awareness to Islamic bank customer loyalty, with customer satisfaction as a mediating variable. Using a structured Systematic Literature Review (SLR) approach, a comprehensive search of scientific articles was conducted in the Scopus and Google Scholar databases covering publications from 2021–2026. After rigorous screening based on inclusion and exclusion criteria, 45 final articles were selected and synthesized using qualitative descriptive methods. The results of the synthesis indicate that green banking, financial literacy, and environmental awareness have a partial positive and significant effect on customer loyalty. Furthermore, customer satisfaction has been consistently shown to act as a mediator, bridging the three independent variables in strengthening long-term loyalty. Aligning personal ecological values with a bank's green commitment is a key catalyst in creating a satisfying banking experience. As a practical implication, Islamic bank management is recommended to authentically integrate green principles into daily operations, expand Sharia-compliant financial education, and transparently communicate environmental initiatives to optimize customer engagement.
Article Details
Section
How to Cite
References
Afifah, A, and N A Kurniawati. “Influence of Service Quality Dimensions of Islamic Banks on Customer Satisfaction and Their Impact on Customer Loyalty.” Journal of Islamic Economic Laws 4, no. 2 (2021): 105–36. https://doi.org/10.23917/jisel.v4i2.15089.
Agyei, J, S Sun, E K Penney, E Abrokwah, and R Ofori-Boafo. “Linking CSR and Customer Engagement: The Role of Customer-Brand Identification and Customer Satisfaction.” Sage Open 11, no. 3 (2021): 21582440211040110.
Ahmad, B, I Shafique, A Qammar, M Ercek, and M N Kalyar. “Prompting Green Product and Process Innovation: Examining the Effects of Green Transformational Leadership and Dynamic Capabilities.” Technology Analysis & Strategic Management, 2022, 1–13. https://doi.org/10.1080/09537325.2022.2071692.
Ahmed, S, M Hussain, and N Ansari. “Shariah Compliance and Customer Satisfaction in Islamic Banking: The Mediating Role of Service Quality.” International Journal of Islamic and Middle Eastern Finance and Management 15, no. 2 (2022): 289–305.
Ajaz, Ris, and Aijaz. “Green Banking Practices-A Review in Select Banks of India.” Turkish Online Journal of Qualitative Inquiry 12, no. 10 (2021): 5137–45.
Albaity, M, and M Rahman. “Customer Loyalty Towards Islamic Banks: The Mediating Role of Trust and Attitude.” Sustainability 13, no. 19 (2021): 1–19. https://doi.org/10.3390/su131910758.
Amir, M. “Banker Attitudes and Perception towards Green Banking: A Study of Select Banks on Conventional Banks in Bangladesh,” 2021.
Ansar, S, L Klapper, and D Singer. “The Importance of Financial Education for the Effective Use of Formal Financial Services.” Journal of Financial Literacy and Wellbeing 1 (2023): 28–46. https://doi.org/10.1017/flw.2023.5.
Anshika, and A Singla. “Financial Literacy of Entrepreneurs: A Systematic Review.” Managerial Finance 48, no. 9–10 (2022): 1352–71.
Aslam, W, and S T Jawaid. “Green Banking Adoption Practices: The Pathway of Meeting Sustainable Goals.” Environment, Development and Sustainability 27 (2025): 1015–40.
Bedendo, M, G Nocera, and L Siming. “Greening the Financial Sector: Evidence from Bank Green Bonds.” Journal of Business Ethics 188 (2023): 259–79.
Begum, N, M M I Bhuiyan, N Hashmi, N K Sadhu, M A Imran, A O Rahid, and I Ahmed. “Green Banking: An Indispensable Step for the Bank to Save Our Environment.” American International Journal of Business Management Studies 3 (2021): 1–11.
Chen, Y.-C., T.-Y. Lin, Y.-H. Chiu, and C.-I. Yang. “An Exploration of Operational Efficiency, Market Efficiency, and Sustainable Development in the Banking Industry.” Corporate Social Responsibility and Environmental Management 31 (2024): 4819–48.
Cordero, J M, M Gil-Izquierdo, and F Pedraja-Chaparro. “Financial Education and Student Financial Literacy: A Cross-Country Analysis Using PISA 2012 Data.” The Social Science Journal 59, no. 1 (2022): 15–33.
Despotović, J, V Rodić, and F Caracciolo. “Farmers’ Environmental Awareness: Construct Development, Measurement, and Use.” Journal of Cleaner Production 295 (2021): 126378.
Fornero, E, and A Lo Prete. “Financial Education: From Better Personal Finance to Improved Citizenship.” Journal of Financial Literacy and Wellbeing 1 (2023): 12–27. https://doi.org/10.1017/flw.2023.7.
Gerrans, P, S B Abisekaraj, and Z Liu. “The Fear of Missing out on Cryptocurrency and Stock Investments: Direct and Indirect Effects of Financial Literacy and Risk Tolerance.” Journal of Financial Literacy and Wellbeing 1 (2023): 103–37. https://doi.org/10.1017/flw.2023.6.
Goyal, K, and S Kumar. “Financial Literacy: A Systematic Review and Bibliometric Analysis.” International Journal of Consumer Studies 45, no. 1 (2021): 80–105.
Harahap, S, A Thoyib, S Sumiati, and A Djazuli. “The Impact of Financial Literacy on Retirement Planning with Serial Mediation of Financial Risk Tolerance and Saving Behavior: Evidence of Medium Entrepreneurs in Indonesia.” International Journal of Financial Studies 10, no. 3 (2022): 66.
Hasan, M, T Le, and A Hoque. “How Does Financial Literacy Impact on Inclusive Finance?” Financial Innovation 7, no. 1 (2021): 40.
Hermansson, C, and S Jonsson. “The Impact of Financial Literacy and Financial Interest on Risk Tolerance.” Journal of Behavioral and Experimental Finance 29 (2021): 100450.
Hidalgo-Crespo, J, S Coello-Pisco, H Reyes-Venegas, M Bermeo-Garay, J Amaya, M Soto, and A Hidalgo-Crespo. “Understanding Citizens’ Environmental Concern and Their pro-Environmental Behaviours and Attitudes and Their Influence on Energy Use.” Energy Reports 8 (2022): 103–9. https://doi.org/10.1016/j.egyr.2022.01.116.
Hossain, A, M Yesmin, N Jahan, and M Kim. “Effects of Service Justice, Quality, Social Influence and Corporate Image on Service Satisfaction and Customer Loyalty: Moderating Effect of Bank Ownership.” Sustainability 13 (2021): 7404.
Junaedi, A T, E Wijaya, P H Santoso, and S Chandra. “Improving Customer Loyalty Wardah Brand through Brand Image and Price Fairness: Customer Satisfaction as an Intervening Variable.” Jurnal Aplikasi Manajemen 20, no. 2 (2022): 379–87. https://doi.org/10.21776/ub.jam.2022.020.02.14.
Kaiser, T, A Lusardi, L Menkhoff, and C Urban. “Financial Education Affects Financial Knowledge and Downstream Behaviors.” Journal of Financial Economics 145 (2022): 255–72.
Kalyar, M N, F Ali, and I Shafique. “Green Mindfulness and Green Creativity Nexus in Hospitality Industry: Examining the Effects of Green Process Engagement and CSR.” International Journal of Contemporary Hospitality Management 33, no. 8 (2021): 2653–75. https://doi.org/10.1108/IJCHM-09-2020-1079.
Kesuma, T M, M Yunus, M R Siregar, and A Muzammil. “Quality and Image: The Role of Satisfaction and Trust as Intervening Variables on Loyalty of Customer’s Internet Service Providers.” Jurnal Manajemen Dan Pemasaran Jasa 14, no. 2 (2021): 282–99. https://doi.org/10.25105/jmpj.v14i2.9358.
Khairunnessa, F, D A Vazquez-Brust, and N Yakovleva. “A Review of the Recent Developments of Green Banking in Bangladesh.” Sustainability 13 (2021): 1904.
Khatun, M N, S Mitra, and M N I Sarker. “Mobile Banking during COVID-19 Pandemic in Bangladesh: A Novel Mechanism to Change and Accelerate People’s Financial Access.” Green Finance 3, no. 3 (2021): 253–67.
Moosa, R, and S Kashiramka. “Objectives of Islamic Banking, Customer Satisfaction and Customer Loyalty: Empirical Evidence from South Africa.” Journal of Islamic Marketing 14, no. 9 (2023): 2188–2206.
Purnama, S, A Sukmasari, and R Bhandari. “The Role of Religiosity as a Mediating Variable in the Relationship between Online Transactions and Customer Satisfaction and Loyalty in Islamic Banking.” Aptisi Transactions on Management (ATM) 5, no. 2 (2021): 143–51. https://doi.org/10.33050/atm.v5i2.1532.
Putri, P I, K N Rahayu, D Rahmayani, and M E S Siregar. “The Effect of Green Banking and Financial Performance on Banking Profitability.” Calitatea 23 (2022): 38–44.
Roberts-Lombard, M, and D J Petzer. “Relationship Marketing: An S-O-R Perspective Emphasising the Importance of Trust in Retail Banking.” International Journal of Bank Marketing 39, no. 5 (2021): 725–50.
Sharma, S, C Gupta, R Khanna Malhotra, and H Upreti. “Sustainable Banking Practices: Impact, Challenges and Opportunities BT - E3S Web of Conferences.” Barcelona, Spain, 2024.
Simanjuntak, M, and A H P K Putra. “Theoretical Implications of Theory Planned Behavior on Purchasing Decisions: A Bibliometric Review.” Golden Ratio of Mapping Idea and Literature Format 1, no. 2 (2021): 1–7. https://doi.org/10.52970/grmilf.v1i1.18.
Singh, V, M P Sharma, K Jayapriya, B K Kumar, M A R N Chander, and B R Kumar. “Service Quality, Customer Satisfaction and Customer Loyalty: A Comprehensive Literature Review.” Journal of Survey in Fisheries Sciences 10, no. 4S (2023): 3457–64.
Sutrisno, S, A Widarjono, and A Hakim. “The Role of Green Credit in Bank Profitability and Stability: A Case Study on Green Banking in Indonesia.” Risks 12 (2024): 198.
Tegambwage, A G, and P S Kasoga. “Antecedents of Customer Loyalty in Islamic Banking: Evidence From Tanzania.” Journal of Islamic Accounting and Business Research 13, no. 4 (2022): 701–13. https://doi.org/10.1108/JIABR-10-2021-0288.
Usman, M, Y Rofcanin, M Ali, C Ogbonnaya, and M T Babalola. “Toward a More Sustainable Environment: Understanding Why and When Green Training Promotes Employees’ Eco-Friendly Behaviors Outside of Work.” Human Resource Management 62, no. 3 (2023): 355–71. https://doi.org/10.1002/hrm.22148.
Yi, H T, C Yeo, F E Amenuvor, and H Boateng. “Examining the Relationship between Customer Bonding, Customer Participation, and Customer Satisfaction.” Journal of Retailing and Consumer Services 62 (2021): 102598.
Zheng, G.-W., A B Siddik, M Masukujjaman, N Fatema, and S S Alam. “Green Finance Development in Bangladesh: The Role of Private Commercial Banks (PCBs).” Sustainability 13 (2021): 795.