The Rise of Eco-Conscious Banking: How Undergrads Are Shaping Finance’s Future

Abstract

Background: The global financial sector is increasingly prioritizing sustainability, with green banking and investment emerging as key strategies to support environmentally responsible economic growth. Despite growing interest, awareness and adoption remain limited in developing economies like Nepal, particularly among younger generations who will shape future financial trends.

Objective: This study examines undergraduate students' awareness, perceptions, and willingness to engage in green banking and investment, assessing potential gender differences and identifying barriers to sustainable finance adoption.

Methods: A quantitative approach was employed, using a structured questionnaire administered to 217 undergraduate students from public and private colleges. Data were analyzed using descriptive statistics, independent samples t-tests, and ANOVA to compare responses across genders and academic disciplines.

Findings: Results indicated moderate awareness of green finance concepts, with no significant gender differences in green banking perceptions (p=0.220). However, male students showed marginally higher interest in green investment (p=0.066). Key barriers included limited financial products, insufficient policy support, and lack of technical knowledge.

Conclusion: While students demonstrate foundational awareness of green finance, targeted educational initiatives and policy incentives are needed to deepen engagement. The findings underscore the importance of integrating sustainability into financial curricula and fostering institutional support for green finance in Nepal.

Novelty: This study contributes to limited research on youth perspectives toward green finance in developing economies, offering actionable insights for policymakers and educators to bridge awareness gaps and promote sustainable financial behaviors.