The Impact of Fintech on Albania's Financial System: Transforming Banking and Financial Markets

Abstract

This study explores the transformative role of financial technology (fintech) in Albania’s evolving financial ecosystem, emphasizing its impact on banking, payment systems, and financial markets. Through a qualitative approach involving expert interviews and supported by secondary data, the paper identifies fintech’s potential to enhance financial inclusion, modernize infrastructure, and align Albania with European standards through initiatives such as SEPA and TIPS integration. While the adoption of digital tools is accelerating, significant challenges persist, including limited financial literacy, regulatory uncertainty, and inadequate infrastructure. The findings reveal that targeted policy reforms, regulatory sandboxes, and digital literacy programs are critical for leveraging fintech to promote inclusive economic growth. By drawing comparisons with neighboring Southeastern European countries, the paper highlights actionable strategies for Albania to foster innovation, bridge financial access gaps, and strengthen its regional financial integration.