The Influence of Green Financial Literacy, Risk Perception, and Peer Influence on Generation Z's Financial Decisions in Green Banking Practices in Pontianak City

Abstract

The implementation of green banking has become increasingly important in supporting sustainable finance and environmental protection in Indonesia. Generation Z, as digital natives, plays a strategic role in accelerating green banking adoption; however, limited green financial literacy, risk concerns, and social influence continue to affect financial decision-making in sustainable banking practices. This study employed a quantitative associative approach to analyze the influence of green financial literacy, risk perception, and peer influence on Generation Z’s financial decisions in green banking practices in Pontianak City. Data were collected through questionnaires distributed to 150 respondents selected using purposive sampling. The data were analyzed using validity and reliability testing, classical assumption testing, multiple linear regression, correlation analysis, coefficient of determination, and hypothesis testing. The findings indicate that all research instruments were valid and reliable, while the regression model met normality, linearity, and multicollinearity assumptions. Simultaneously, green financial literacy, risk perception, and peer influence significantly influenced financial decisions. Partially, green financial literacy and peer influence had positive and significant effects, whereas risk perception had a negative and significant effect. Peer influence emerged as the most dominant variable affecting financial decisions. Financial decisions regarding green banking practices among Generation Z are strongly shaped by sustainability knowledge, social interaction, and perceived financial risks.