Climate change mitigation through banking technology enhancement in industry

Abstract Banking activities such as reliance on paper, transportation, and other high-carbon footprint resources can cause environmental damage and contribute to climate change. The enhanced use of information technology and digitalization in the banking sector can serve as an alternative to mitigate ongoing environmental damage and change. It significantly reduces the use of paper and the need for transportation, ultimately enhancing operational efficiency and reducing environmental impact. The main problem in Indonesia is that the use of banking technology by industries is only 17.2%. Therefore, this paper aims to find issues in the use of banking technology in Indonesia and create strategies to increase the amount of banking technology utilization in Indonesia. The method used is the mixed method. The analysis found that low digital capability, an unsupportive environment, security issues, low financial literacy, a lack of socialization, and weak information technology infrastructure caused bottlenecks in the use of banking technology by industries. The strategies to overcome this problem are socialization, increasing financial literation, and improving Information and Communication Technology (ICT) infrastructure in determined areas.