PRESS RELEASE
Bank of Albania and World Bank co-organise the Workshop: “Albania’s path to SEPA integration, financial inclusion and education”

On 14-15 June 2024, the Bank of Albania and the World Bank co-organised the Workshop: “Albania’s path to SEPA integration, financial inclusion and education” Discussions in this activity focused on the integration status of Albania in the Single Euro Payments Ares and the benefits for Albania, as well as on the importance of financial inclusion and education for the development of market and social welfare.

The Governor of the Bank of Albania, Mr Gent Sejko; Project Manager on Modernising payments at World Bank, Mr Matija Laco; Deputy Chief of Mission at Embassy of Switzerland, Mr Philipp Arnold; and the Minister of State for Youth and Children, Ms Bora Muzhaqi, greeted the workshop. Representatives from commercial banks, payment institutions, FinTech, policy makers and non-government organisation engaged in providing programs and modules of financial education attended this round-table.

In his address, Governor Sejko said that more than ever, the economic growth and economic stability depend on the financial empowerment of all our citizens. Due to the rapid developments in the field of: finance, artificial intelligence, digitalisation; as well as in economy and money, our commitment towards these objectives has become purposefully.

In this regard, the Bank of Albania has considerably intensified the efforts for accelerated membership of Albania in the Single Euro Payments Area - SEPA. Thanks to these efforts, two days ago, the Bank of Albania officially submitted the application to the European Payments Council for Albania's membership in SEPA, “Simplification, convenience and efficiency are three among the main benefits of this membership for the consumers and businesses. Through SEPA, the Albanian citizens and businesses will carry out their payments and transfers just like their European counterparts and vice-versa. |The main benefits of the Albanian economy and Albanian individuals will be considerable in the areas of trade, tourism, remittances, and direct investments.”- said the Governor.

In this regard, the Governor thanked the team of the Bank of Albania, charged with this project, the World Bank, Government and all the other national authorities that have supported the aspiration of the Bank of Albania for the accelerated membership in SEPA.

In addition, Mr Sejko highlighted that benefits for the use of financial instruments are enabled only through the financial know how and education, which provides to households the necessary knowledges and skills to take informed decisions for the management of personal finances.  Albania is a developing economy, with a low level of financial literacy traditionally, thus, working in this regard can bear significant achievements.  

The Project manager on Modernising Payments at World Bank, Mr Laco, identified payment systems as the backbone of economic and financial activities. Individuals, businesses, and governments make and receive payments every day.  Therefore, the ability to transfer monetary value safely, efficiently, and effectively is fundamental. . The World Bank’s technical assistance through the EU-funded Payments Modernization projects and the SECO-funded Remittances and Payment Program supports Albania’s payment system modernization efforts.  These projects are shaping a future that leads to a more robust digital economy, more financial inclusion and more cost-efficient domestic and cross-border payments.  The World Bank is committed to continuing supporting the Bank of Albania with transformation reforms and commends the achievements that Albania has made so far on its journey towards SEPA integration and the modernization of payment systems.

The Deputy Chief of Mission of Swiss Embassy, Mr Arnold, wished Albania for the big step to membership in the Single Euro Payments Area (SEPA), where the Programme on remittances and Payments has provided its contribution. Promoting financial inclusion and education is another area supported by the Swiss state, to ensure that Benefits stemming from SEPA membership and financial services, overall, are accessible to all and boost economic growth, in both Albania and throughout the region.

The Minister of State for Youth and Children, Ms Bora Muzhaqi, in her speech, commented the achievements and positive developments in the field of financial education, highlighting that more and more needs to be done, in terms of the opportunities we offer to children and young people. “As we are committed to equip children and young people with more financial education, we have already started work for several months to develop a new after-hours curriculum that develops and expands the knowledge obtained in the school curriculum of financial education, and allows practical use of these knowledge, preparing them for the world of work.” - said the Minister.

The first session of the Workshop focused on Albania's integration into the Single Euro Payments Area (SEPA) and the tangible benefits it brings to the country. Panellists discussed the formal application for Albania's membership in SEPA, the expected impact on Albania's financial infrastructure and economy, as well as the necessary measures to maximize the benefits stemming from participation in SEPA. The second session addressed the importance of financial inclusion and education for market development and social well-being, as well as strategic priorities for promoting these issues in the country. With a particular focus on financial developments and innovations in the market, the panellists underscored the importance of coordinated strategies and efforts of financial education for national success. Discussions in third session addressed the role and contribution of various actors in the field of financial education, focusing first on identifying the needs for financial education, and then following on with best practices, target groups, the success of projects, but also the challenges they face and future recommendations.

On 12 June 2024, the Bank of Albania officially submitted its application for SEPA membership, thus becoming the first country in the region to submit the formal application for participation in the SEPA payments area.