Sustainable Marketing in the Banking Sector: Leveraging ESG Principles to Build Competitive Advantages Within the Framework of EU Regulations Online First

Abstract

The article looks at the need to analyze ESG principles and create competitive advantages within EU regulations in the banking sector. It examines the challenges of following ESG principles in banking and evaluates their impact on banks under EU rules. The EU banking sector has many advantages and challenges. Challenges include the continuous reduction of bank branches, high segmentation of the banking system across national markets, different national regulatory practices, competition from fintech and other financial and non-financial companies, and the gradual decline of the sector as an attractive place for new business investment. The practical result of the study is an algorithm for integrating ESG principles into the Ukrainian banking sector. The theoretical result identifies the requirements of European law for banking and the use of sustainable marketing tools. The article highlights that following ESG principles benefits European banks because it protects them from regulatory pressure and ESG risks, lets them grow steadily, and positions them as key actors in society while allowing them to invest in modernizing social life.