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FinTechs belonging to this area offer traditional banking services in a modern way, usually through online services or mobile applications as well as ancillary services – e.g. enabling customers to manage their giro- or custody-accounts online and in real time or offering e-wallet services. Keywords in this context are also API-Banking or Banking as a Service (BaaS)/ Bank as a Platform (BaaP).
API-Banking:
API stands for application programming interface and is offered to access data banks and to extract and insert information. API-Banking consequently means the access to data banks of banks to offer new and innovative banking applications.
Through these services FinTechs offer services with new functions, e.g. enabling customers to manage their accounts online and in real time.
BaaS – Bank as a Service/BaaP – Bank as a Platform:
The API-based Bank as a Service platform has a full banking licence, but merely serves as the back end for standalone independent FinTechs, which “use” the licence and the back end of the bank to offer new financial services, launch additional financial products or expand into additional markets.
Introduction
Attitude of the country towards online-banking services
According to statistics from the BoA for the year 2024 the total number of remote banking transactions reached 9,36 million, the highest level ever recorded. Compared to the previous year, Albanians increased the number of remote banking transactions by 22% or 1,7 million more transactions. Over the last five years, the number of home banking transactions has increased by almost 160%. Pandemic-related restrictions brought greater attention to the distance payment opportunities offered by the banking sector in the country. The growing trend of digital channel transactions has continued steadily throughout the post-pandemic period.
Approximately 90% of internet-connected bank accounts belong to individuals. However, the largest increase in internet-connected accounts last year was seen in the business segment, with a 26% increase compared to the previous year. Internet banking service is now offered by all commercial banks in Albania, and the number of service users is growing rapidly.
Legal affairs
Obligations and requirements to provide online-banking services described above
Online-banking services are provided solely by licensed banks operating in Albania and following the approval of BoA, the latter issued after scrutinising the notice for certification accompanied with all related data to e-banking technical and operational management, a cooperation agreement regarding bank IT support (if applicable), and a list of bank transactions to be carried out etc.
There are no additional requirements, such as a license, running costs or financial reserves strictly related to online banking.
Additional comments regarding the legal situation for online-banking services or what FinTech’s must be aware of in this business area
All authorised banks are subjects to BoA supervision, which may suspend online banking, partially or completely, due to non-conformity with applicable requirements.