IFC and AAB sign cooperation agreement to advance digital financial services and fintech development in Albania
On 20 November 2024, the Albanian Association of Banks (AAB) represented by its President, Mr. Bledar Shella, and the International Finance Corporation (IFC) represented by its Regional Manager for the Western Balkans, Mr. Nicolas Marquier, signed a cooperation agreement to catalyze the growth and development of digital financial services (DFS) and fintech ecosystem in Albania. The agreement also focuses on improving the efficiency of the country’s credit information systems (CIS), thereby improving access to finance for individuals and businesses.
The project is managed by IFC’s Country Advisory and Economics Unit and financed by the Swiss State Secretariat for Economic Affairs (SECO).This partnership aims to create a modern and inclusive financial ecosystem in Albania by fostering collaboration between public and private stakeholders, promoting innovation, and strengthening financial infrastructure.
Regarding this project, AAB will collaborate with IFC by working in technical teams on assessments, diagnostics, and organizing workshops, training, and capacity-building initiatives. In addition, will provide IFC with all the necessary information, subject to Albanian law, to ensure the effective implementation of the project.
Key objectives of the agreement:
This cooperation will focus on six key areas to build a stronger and more inclusive financial system in Albania:
- Simplifying digital onboarding and e-KYC: Supporting the adoption of electronic Know Your Customer (eKYC) practices to strengthen user authentication and risk management.
- Advancing Open Banking: Identifying impactful opportunities to develop Open Banking, and providing technical assistance to enable better integration and customer experiences in the financial ecosystem.
- Promoting cashless payments: Sharing global best practices to increase adoption of cashless and instant payment systems while enhancing financial literacy.
- Strengthening cybersecurity: Raising awareness of cybersecurity risks and supporting the financial sector in adopting safe and resilient practices.
- Leveraging cloud technology: Empowering the financial sector to harness cloud-based solutions while ensuring compliance with international data protection standards.
- Improving credit information systems: Supporting the creation of private credit bureau and improving data usage to expand access to finance for underserved segments.
Why this matters:
This agreement is expected to have a transformative impact on Albania’s financial sector by expanding access to affordable and innovative digital financial solutions; strengthening the infrastructure for a sustainable fintech market; and, enabling safer, more efficient credit systems that support both businesses and consumers.
The initiative will run until December 31, 2027, and reflects the shared commitment of IFC and AAB to support the modernization of Albania’s financial ecosystem and align it with international standards.
About the partners:
AAB
AAB is the representative body, which in partnership with public and private sector stakeholders contributes to improving the business environment and discussing key industry issues defining common strategies for the Albanian banking sector.
IFC
A member of the World Bank Group, IFC is the largest global development institution focused on the private sector in emerging markets. IFC’s Western Balkan Digital Financial Services and Embedded Finance Project and the Western Balkans Credit Information System Project provide advisory services to help align Albania’s financial systems with European standards while fostering innovation and improving credit information systems.
SECO
The Swiss State Secretariat for Economic Affairs (SECO) is Switzerland’s competence center for economic development cooperation. SECO’s programs aim to achieve inclusive and sustainable growth by creating better jobs, enhancing trade and competitiveness, and supporting strong, resilient economies.
