Gent Sejko: Albania's path to SEPA integration, financial inclusion
and education
Address by Mr Gent Sejko, Governor of the Bank of Albania, at the Bank of Albania and
World Bank Workshop "Albania's path to SEPA integration, financial inclusion and
eduction", Tirana, 14 June2024.
* * *
Dear ladies and gentlemen,
I am delighted to warmly welcome you in this Workshop, focusing on two important
topics: submission of application for integration in the Single Euro Payments Area
(SEPA), and the importance of financial inclusion and education, as crucial issues for
the development of Albania. These topics might, at first glance, seem unrelated to each
other, but they share a single objective: improving the well-being and financial stability
of Albanian families and businesses. If handled with responsibility, both of them might
contribute to the financial and macroeconomic stability of Albania.
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. Allow me first to list some of the
most important developments taking place in payment systems.
The Bank of Albania, in the past year, has considerably intensified the efforts for
accelerated membership of Albania in the Single Euro Payments Area - SEPA. These
efforts have been materialised in touchable measures and quite optimistic.
Two days ago, the Bank of Albania officially submitted the application to the European
Payments Council for Albania's membership in SEPA, ranking the first country in the
Region to successfully complete this important phase of integration into the Euro
payments area. It is important to highlight that the drafting of the application has been a
laborious task led by the Bank of Albania, but thanks to our preparatory work and
cooperation with other several public institutions, this project is being carried out
successfully.
The accelerated membership in SEPA is one of the measures laid out in the Project
"Payment Systems Modernization in the Western Balkans", which has become a
national priority in the framework of fulfilling the New Growth Plan for the Western
Balkans of the European Union. It has the support of the European Commission, the
Regional Cooperation Council and the World Bank. Membership in SEPA brings
multidimensional benefits to Albania in the framework of the integration process in the
European Union, also as regards the Albanian economy and the domestic payment
market.
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 conduct their payments and transfers just like their European
counterparts and vice-versa. The main benefits of the Albanian economy and Albanian
families will be among others in the areas of trade, tourism, remittances, and direct
investments. Projections show that the Albanian economy, over the medium term, will
benefit some hundred million euro from membership in SEPA.
From the integration process viewpoint, the accelerated membership in SEPA
guarantees that Albanian citizens will be treated equally to their European in the field of
payments. Also, it guarantees that the Albanian payments market is in compliance with
the European Union legislation and practices in terms of Chapter 4 that delineates the
"Free Movement of Capital", while successfully crowning the consistent and multi-year
efforts of the Bank of Albania, as the institution responsible for this chapter.
Last but not least, fulfilling this objective marks the first step toward our engagement in
the framework of the new Growth Plan for the Western Balkans, which will enable
Albania to obtain the necessary funds to pave a sustainable path toward the EU
membership in 2030, which is also our final objective.
As previously stated, we can benefit from the advantages provided by the financial
instruments only through financial education and know-how. That is why the second
part of this workshop focuses on financial education, which equips individuals with the
necessary know-how and skills to take informed decisions on personal finances
management. Albania is a developing economy, with a low level of financial literacy
traditionally, thus, working in this regard can bear significant achievements.
The Bank of Albania, as a result of its initiatives, notes with a degree of satisfaction a
significant increase in financial inclusion. Thus, based on official data from the national
register of bank accounts, in 2023, around 78% of adults own a bank account, a figure
which could reach 85%, if payment accounts of electronic money institutions were to be
included as well. The higher financial inclusion has been accompanied by an increase
in electronic payments. More concretely, in 2023, the number of electronic payments
per capita reached 21, from 4 per capita in 2017. A considerable increase was recorded
in card payments, as they reached 11 payments per capita in 2023, from 5 payments
per capita in 2020.
From years, the Bank of Albania has paid special attention to financial education and
literacy. In order to have a responsible approach in this regard, the Bank of Albania has
approved the Strategy on Financial Education and Inclusion (BoASFEI). This document,
as compiled in compliance with the best international practices, makes official the
efforts of the Bank of Albania in promoting financial education as a public good for
everyone, for bolstering financial inclusion, consumer protection and increasing
financial welfare of individuals as well as the stability of entire financial system.
We are pleased to share this objective with various public and private institutions and
organisations engaged in the area of finance, education and development, which focus
their work on the enhancement of financial literacy. The common work may transform
the Bank of Albania Strategy on financial inclusion and education into a national one,
which would coordinate at a national level the initiatives of all stakeholders, driving to
more tangible results. I am optimistic that we will reach this objective sooner rather
than later. The activity today is part of this strategy' the action plan, allowing these
important collaborators to present and display their work and projects and coordinate
their visions and objectives.
As we work together for accomplishing these common objectives, a special thank is
addressed to public institutions that adopt policies which promote financial education
and inclusion; financial institutions that develop and provide all-inclusive financial
products and services; educational institutions which integrate financial education in
their curricula and programs; non-government organisation that work in the field to
educate and empower their communities; as well as the information technology
companies and Fintech innovators who work to digitally transform the financial sector.
Before concluding, I would like to express my gratitude to the World Bank, SECO and
the Swiss Embassy in Tirana, and absolutely the Albanian Government, as they are
important partners in the process of drafting and implementing these challenging
projects. Together, we could build an inclusive society in a financial manner, where
each individual can develop and realise its own potential.
Thank you!