Elisabeta Gjoni: Modernisation of retail payment systems in Albania
Opening address by Ms Elisabeta Gjoni, First Deputy Governor of the Bank of Albania, at the
Conference on the "Modernisation of retail payment systems in Albania", Tirana, 21 June 2018.
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Good morning!
It is my great pleasure to welcome you to the Conference on the "Modernisation of retail payment
systems in Albania". The Bank of Albania is honoured to have today representatives from the
European Central Bank, the World Bank, and central banks of Italy, Kosovo, and Serbia. Also, I
would like to welcome the operators and providers of well-known payment services in
international markets, representatives of the domestic banking and payments industry, public
authorities and, the Governor of the Bank of Albania and the Deputy Prime Minister of Albania,
Mrs Senida Mesi.
This conference takes place only one day after the meeting of the National Payment System
Committee (NPSC). The members of this Committee undertook important commitments related
to the development of payment systems and financial inclusion.
The approval of the National Retail Payments Strategy (2018-2023) is the main product of this
meeting.
The retail payments system is a vital component of: financial markets; the overall economy; and
every citizen as the end user. In this framework, the Bank of Albania prioritises the modernisation
of retail payments system.
Banks have provided a significant contribution for the development of payments, so far. They
have invested in: many new technological platforms; modern payment instruments; cards by the
renowned international brands. In recent years, non-bank financial institutions are also playing an
important role in this regard, by implementing innovative solutions. Public authorities have
initiated and developed electronic platforms for the public payment services, such as taxes.
The progress is notable - if compared with 10-20 years ago. But, our benchmarks are visionary:
alignment with the standards of the countries we aspire to integrate with and the development of
a society with a broad base of financial inclusion, where the use of electronic payment
instruments are part of everyday life.
The Bank of Albania, based on this vision, has placed at its focus the modernisation of retail
payments system to bring about a tangible change.
In collaboration with all market stakeholders, and with the valuable expertise of the World Bank,
funded by SECO, the Bank of Albania finalised a set of analyses and studies on the situation of
payments in Albania. I would like to mention here three main reports, published on our website:
1. The so-called PAFI project report on the market analysis on financial inclusion, which is
implemented, in many other countries, and aims at reforming the retail payment systems
and promoting financial inclusion;
2. Review of the Market for Remittances in Albania, a component of retail payment systems;
3. The study on measuring the costs of payment instruments. This study identified the costs
for each element, finding that cash is the most costly means to the Albanian economy. In
addition, it sets out scenarios for the replacement with various innovative instruments, which
reduce these costs.
The findings from the market, needs assessment and scope for intervention were materialised
in a National Strategy on the Modernisation of Retail Payment 2018-2023)
The Strategy aims for improvements in the retail payment market to provide Albanian
citizens with more options to choose from for their daily transactions, more easily and
more cost-effective, by supporting the objective for a broader-based financial inclusion.
The strategy lays down concrete and measurable objectives, such as the doubling of the
population having a bank account (from 38% in 2018 to 70% in 2022), the increase in the number
of electronic payments per capita, from 4.3% in 2016, to 10 in 2022 (increase by 130%).
The Strategy aims also legal and regulatory improvements, which lay the foundations for
innovative initiatives, and a level playing field. In this regard, the Bank of Albania
finalised the drafting of the law "On Payment Services in the Republic of Albania". The
approval and implementation of this law will provide a
crucial contribution to establishing
services at low cost and easily accessible by the public, and promoting competition and
also based on This will be the theme
innovation a prudential consumer protection regime.
of the first session of the Conference.
Also, the Strategy aims at infrastructural improvements. In this regard, a set of measures
are envisaged to promote interaction among various actors from the infrastructural point of view,
aiming at reducing costs, in particular, for end users.
The establishment of a national platform for processing card payments - would to provide a
direct impact on reducing high costs and improving the current card processing practices, due to
the extended cycles and involvement of more actors in the process. Such a platform would also
support innovative services, such as mobile payments and e-wallet.
The Bank of Albania is analysing the possibility to develop instant payment in our market as
well. The implementation of such a project is deemed to have a direct impact on financial
inclusion and on providing services at low cost. I invite you to actively participate in
discussions, in order to benefit as much as possible by the experience of other
countries, and to analyse the possibilities presented by service providers that are invited to
discuss on these topic in the afternoon session.
Furthermore, regarding financial inclusion, the strategy pays special attention to the
establishment of the concept of "basic" bank accounts with low costs, for the financial
inclusion of all levels of population, irrespective of their economic situation.
Last but not least, innovation in public services. The initiatives that digitalise and automate
public services need coordination and access to various data electronic platforms, such as data
of: citizens; addresses; and payments for these services.
Any development should be accompanied with financial education of the population, as a
precondition for success.
The discussions in this Conference bring to the fore the views and experience of various actors
from different countries (regulators, developers, service providers, authorities and experts) and I
think this will shed light on the key topics of modernising the retail payment systems in Albania.
Thank you!