Advancing Digital Banking in Albania: Trust, Financial Literacy and Regulatory Readiness in the FinTech Ecosystem

Abstract

Digital transformation is reshaping banking systems worldwide, yet the pace and depth of adoption remain uneven across emerging financial markets. Albania has made visible progress in electronic payments, online banking access and regulatory alignment with European digital finance standards; however, the transition from formal access to sustained digital banking adoption remains incomplete. This study examines the factors influencing digital banking and FinTech adoption in Albania, with a specific focus on consumer trust, financial literacy, perceived barriers and regulatory readiness. The paper applies a mixed-methods research design. Quantitative data were collected through a structured consumer survey with 151 respondents and analyzed through descriptive statistics and Spearman correlation analysis. Qualitative evidence was gathered through 15 semi-structured interviews with representatives from commercial banks, electronic money institutions, public institutions, regulators, sectoral organizations and academic experts. Thematic analysis was used to identify common institutional, technological and regulatory patterns. The findings show that digital banking services are widely accessible, but usage intensity remains moderate. Weekly and monthly use are more common than daily use, while trust, financial knowledge and perceived barriers significantly shape adoption patterns. The correlation analysis indicates a positive relationship between financial knowledge and digital banking use, and a negative relationship between perceived barriers and usage. Interview findings reveal six major themes: digital transformation as a strategic priority, Bank–FinTech cooperation, regulatory adaptation, cybersecurity and data protection, financial education, and an optimistic but conditional outlook toward 2030. The study contributes to the literature on digital financial inclusion in emerging markets by integrating consumer-level evidence with institutional and regulatory perspectives. It argues that Albania’s digital banking transition requires not only technological investment, but also trust-building, digital financial education, cybersecurity, regulatory innovation and stronger cooperation between banks, FinTech actors, regulators and academia.