Impact of Digital Banking Growth on Green Banking Investment : Evidence from Selected Commercial Banks in Bangladesh.

Abstract

The primary objective of this study was to evaluate the impact of digital banking growth on Green Banking Investment (GBI) in selected commercial banks in Bangladesh. Based on the empirical evidence gathered from 2020 to 2024, the study concludes that digitalization is a vital driver of environmental sustainability in the financial sector. The regression analysis revealed that Mobile Banking Transactions (MBT) and Point of Sale (POST) transactions have a statistically significant positive influence on green investments. The high R-squared value (0.99) suggests that the shift toward a paperless, digital-first banking model directly facilitates the allocation of funds toward eco-friendly projects. While traditional channels like ATMs did not show a significant link to green initiatives, the overall digital infrastructure (DBU) remains a core component of this transformation. Ultimately, the integration of digital technology and green finance is no longer optional but a strategic necessity for the long-term sustainability of Bangladesh's banking industry.