What Constitutes as a Sustainable Banking Business Model?

The banking sector, despite distrust, scandals and image issues, plays a vital role in achieving sustainability goals and agendas such as the UN Sustainable Development Goals. Sustainability requires capital flow, investments and redistribution of money and wealth, which is at the core of the banking sector. However, the general distrust in the sector, and the constant pressures to change, in form of social, environmental, and regulatory pressures, the banking sector needs to rethink their business model. Through a literature review, this study analysis 61 papers on banking and sustainability, with the aim of unfolding what constitutes a sustainable banking business model and construct a conceptual model for the sector. The study aims to identify key attributes of a banking business model, despite the complexity of the sector and variety of banks, and with it carve out the similarities that may become a banking business model and identify the differences between this framework and other sustainable business model frameworks in literature. With this conceptual framework, the paper further aims to identify key managerial implications for banks to unpack their value as sustainable organizations and key players and contributors in developing and supporting global and local sustainability agendas. Finally, the paper will suggest avenues for future research areas of sustainable business models and sustainable banking literature to advance the research in the respective fields.