Factors Influencing the Adoption of Green Banking Services among Higher Learning Students in Tanzania: The Moderating role of Customer Perception

This study examined factors influencing the adoption of green banking services among higher learning students in Morogoro, Tanzania. The study was governed by the Unified Theory of Acceptance and Use of Technology (UTAUT) and Stimulus–Organism–Response (S-O-R) frameworks. The study used a cross-sectional research design. Data were collected from 287 students across four universities using a questionnaire and analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The study found that awareness (β = 0.023, t = 2.826, p < .05) and environmental attitude (β = 0.040, t = 2.950, p < .05) significantly influenced green banking service adoption through perceived effectiveness, supporting H1 and H2. This suggests that individuals with higher awareness and stronger environmental values are more likely to adopt green banking practices. However, social influence showed no significant indirect effect (β = 0.011, t = 0.936, p = 0.349), leading to the rejection of H3. Based on the findings, this study concludes that internal cognitive factors and environmental values play a more influential role than social cues do in shaping pro-environmental financial decisions. It is therefore recommended that banks and universities should focus on value-driven awareness strategies to effectively encourage green banking behaviours among higher learning students in Tanzania.