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Non-Banks Could Play a Bigger Role in Albania’s Financial Sector

Enhancing Financial Inclusion through Non-Bank Financial Institutions (NBFIs)

A recent report from the World Bank highlights several areas where non-bank financial institutions (NBFIs) can play a more significant role in improving financial inclusion in Albania.

Strengthening National Payment Systems Committee

The report recommends broadening the composition of the National Payment Systems Committee (NPSC) to include NBFIs as voting members. This would ensure that the committee’s decisions take into account the needs and perspectives of all stakeholders in the payment systems industry, including:

  • Representing the interests and expertise of NBFIs
  • Ensuring greater diversity of representation on the committee

Financial Literacy Education

The report notes that while there are already some initiatives underway to promote financial literacy, they lack a clear long-term strategy. NBFIs could improve this by developing products and services that provide financial education to underserved populations.

Increasing Access to Financial Services

NBFIs can play a key role in increasing access to financial services for underserved populations by:

  • Offering mobile payment solutions
  • Partnering with other organizations to provide financial services to rural areas where traditional banking infrastructure is limited

Interoperability and Electronic Payments

The report emphasizes the importance of interoperability between different payment systems and channels. NBFIs can help facilitate this by developing products and services that allow customers to make payments across multiple platforms.

Promoting Remittances

NBFIs can also play a key role in promoting remittances as a basic service that is often the first to be accessed by underserved populations. This could involve partnering with international organizations and other stakeholders to develop products and services that make it easier for individuals to send and receive remittances.

Conclusion

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The World Bank report suggests that NBFIs have an important role to play in promoting financial inclusion in Albania, and that their involvement could help increase access to financial services for underserved populations. By working together with governments, financial institutions, and other stakeholders, NBFIs can contribute to a more inclusive and efficient financial sector.