1. Increasing financial inclusion in Albania
Two solutions for policy makers
Anjeza Beja

2. Content Problem background
Proposed policy solutions and implementation

3. Financial inclusion level Albania vs. region and world
Source: Global Findex 2017, World Bank

4. Why? - The results for Albania
Source: Global Findex 2017, World Bank
* % without a financial institution account, age 15+

5. Statistics
60% of the Albanian adult population is financially excluded (Global Findex 2017)
19% of pensioners received their public sector pension in a bank account (lowest in the region) (Global Findex 2017)
There are 21.5 branches of commercial banks per inhabitants in Albania, ranked 5th among 6 countries in the region (IMF Financial Access Survey 2017) and NBFI agents per inhabitants (BoA data on NBFI agents)
32% of the Albanian employed population is informally employed (ILO 2016)
Albania’s average score on financial knowledge, attitudes and behaviour is 12.7, ranked somewhat below the world average of 13.2 (OECD/INFE International Survey of Adult Financial Literacy Competencies, 2016)

6. Proposed Solutions and implementation 1
Banks introduce in the Albanian market the basic accounts product (in line with the EU directive on Payment Accounts).
A product designed for poor or unbanked people to create them the opportunity to use financial services and be socially and financially included;
Provides basic banking services with simpler features such as place funds and withdraw cash;
Free of maintenance fee.
Implementation
Working group established at the AAB with the supervision of BoA to design the basic account product and come up with a proposal within year The proposal should be cleared and approved internally by the banks.
Once implemented, advertising campaigns should be organized to inform people about this new opportunity and the respective benefits.

7. Proposed Solutions and implementation 2
Bank of Albania allows agent banking model and revises respective legislation to enable this opportunity in the market and to serve the needs of people who live in rural areas.
Implementation
Transposition of PSD 2 in the Albanian legislation – banks should be allowed to have agents to have agents as non banking financial institutions are allowed to do or as payment institutions will be allowed to do in the future.

8. Thank you for your attention!