Ekonomia

Pandemic increased online banking usage by 33%

Pandemic increased online banking usage by 33%

Accounts related to the internet banking service increased at double-digit rates for 2020. According to data from the Bank of Albania, the number of internet accounts connected to the internet reached approximately 586 thousand, with an annual increase of 33% or about 144 thousand accounts more.

The use of internet banking has increased for the twelfth consecutive year, while in the last five years alone, the number of accounts accessible from the internet has quadrupled. The year 2020, however, was the society with growth rates about three times higher compared to 2019.

It seems that the pandemic and the restrictions have given a strong impetus to the increase of the use of internet banking services. The increase in the number of Internet-connected accounts was high for both businesses, by almost 39%, and individuals, by 33%. In total, statistics show that about 89% of Internet-connected accounts belong to individuals, who also hold the highest share in the structure of bank accounts.

As a simple ratio of the number of accounts to the total number of the population, it is estimated that in Albania, the number of accounts connected to the Internet is about 21% of the population, a significant increase from the level of 15.5% in 2019.

Internet banking service is provided by 11 out of 12 commercial banks in Albania. With the increasing importance of technology in society, banks are focusing on promoting these services as an alternative channel for customer relations. The promotion of internet banking was further stimulated after the outbreak of the pandemic, also prompted by the regulatory measures of the Bank of Albania, which during the closing of the economy suspended the commissions for interbank payments via the internet.

With the permanent regulatory changes adopted in the middle of the year, it was determined that the commissions for transfers via the Internet should be at least 50% cheaper compared to those performed at bank counters. Small transfers up to the amount of 20 thousand ALL will be made without any commission.

A study published last year by the Albanian Banking Association (before the pandemic broke out) found that the main channel of the bank's relationship with Albanians remained direct contact with branches and ATMs. 91% of respondents had direct contact as the most common form of relationship with the bank, while only 17% had internet banking as their main channel.

The potentials to increase the use of technology in financial services are still great, given that at least 65% of Albanians are Internet users through mobile networks. Meanwhile, parallel surveys have shown that only 40% of adult Albanians own bank accounts, which demonstrates the still high need to increase financial education and formalize the economy.

* Received from Monitor.al