PRESS RELEASE
Governor Sejko attends the Forum “Digitalization vs Cash”, organised by the Albanian Association of Banks

On 14 June 2022, the Governor of the Bank of Albania, Mr Gent Sejko attended the Forum “Digitalisation vs Cash” hosted by the Albanian Association of Banks (AAB).

The Forum proceedings were opened by the Chair of AAB, Mr Bledar Shella; the Governor of the Bank of Albania, Mr Gent Sejko; the Minister of Finance and Economy, Ms Delina Ibrahimaj; and the Deputy Prime Minister and Minister of State for Reconstruction and Reform Programme, Mr Arben Ahmetaj.  Discussions in this Forum focused on: the alternative payment channels; the reduction of cash use in economy and the fight against informality; the deployment of the e-Albania portal by banks.

In his address, Governor Sejko appraised the organisation of this Forum as a further step and logical consequence of the joint discussions and round tables between banking sector and public institutions on digitalisation of financial services.

At the beginning, the Governor stated that the Bank of Albania has already established the effective premises for the foundation of a digital revolution in the payment market, through the legal and regulatory framework in force, which may be considered avant-garde in the context of the European Union. To this end, Albania, at regional level, is the first country that has approved the legal and regulatory framework coupled with the bolstering of “open banking” in the market.

In this regard, Mr Sejko highlighted that the support and promotion of electronic payments, both in international experiences and in the Albanian context, are seen as one of the most effective and powerful mechanisms for bolstering financial inclusion and further formalisation of the economy.

“This development needs rather complex investments and regulations, which promote innovation in an environment that will guarantee a maximum security, while it turns more meaningful in case of Albania - where both financial education and inclusion are relatively low - the demand for market’s actors to make safe steps is quite important” - explained the Governor.

Mr Sejko added that the Bank of Albania has also undertaken a set of regulatory measures and infrastructural developments, which have been focused exactly on the promotion of electronic payments in the framework of the National Retail Payments Strategy (NRPS).

He pointed out that market is more aware and conscious that digitalisation is the future, as a consequence of the technological revolution taking place in each field of life, in the perspective of their strategic development, in the context of minimizing the costs and risks borne by traditional practices, and at the same time for increasing the effective productivity. 

Until a few years ago, paying utility bills, fines, tax payments, customs and social security via the internet and mobile seemed a utopia. Nowadays, the general public is increasingly employing and benefiting from these services. To best converge the materialisation of this development in figures, it is worth mentioning that in 2012, about 96% of transfers were initiated in paper form at banks’ windows, while today about 50% of transfers are processed remotely. If we include in the calculations the card payments, it turns out that 79% of payments and transfers are made remotely and only 21% in bank branches.

From this point of view, the Governor assessed that banks remain committed to accommodate the needs of the e-Albania platform, both in the existing conditions and after the creation of "open banking". Harmonization and coordination of this platform with those of the banking system, as well as giving priority to the necessary developments required in relation to them, will stem a facilitation coupled with a more efficient interaction, and in turn a strengthened synergy amongst all parties involved in these processes.

Concluding, Governor Sejko expressed once again the full commitment of the Bank of Albania to support any necessary development, in order to achieve the intended objectives. In addition, He congratulated the Albanian Association of Banks for its huge and long-standing work, in boosting and supporting every project, initiative or need identified by the market and more broadly.