Albania’s Digital Banks Pursue European Market Access Under Changing EU Rules

Tirana – (Brussels Morning Newspaper) September 11, 2026 -Albania’s digital banking sector is positioning for closer integration with European payment markets as the European Union advances new rules on payments, customer authentication and financial-data access. Jet Bank, identified as the Western Balkans’ first fully digital bank without branches, is operating in a country where cash remains widely used but where banks are preparing to make euro cross-border payments through the Single Euro Payments Area from October 2025. EU institutions have also reached a provisional agreement on revised payment-services rules, while member states are required to make EU Digital Identity Wallets available by 2026.

Albania’s financial sector is preparing for changes that could affect digital banks, payment companies and customers as the country aligns more closely with European financial standards.

The country entered the geographical scope of the Single Euro Payments Area, or SEPA, in November 2024 after approval by the European Payments Council. The Bank of Albania said the decision allowed Albanian payment-service providers to apply for membership of SEPA schemes, enabling the country’s banks to prepare for euro-denominated cross-border transactions.

In April 2025, the Bank of Albania and the Albanian Association of Banks submitted applications for the country’s commercial banks to join the SEPA Credit Transfer scheme. The central bank said all 11 banks operating in Albania had prepared applications and that the European Payments Council’s timetable provided for cross-border transactions to begin from October 2025.

The development comes as the EU updates its payments framework through the proposed Third Payment Services Directive, known as PSD3, and the Payment Services Regulation, or PSR. European Parliament and Council negotiators reached a provisional political agreement on the legislation in November 2025. The agreement still requires formal approval before the rules take effect.

Jet Bank Operates Without Physical Branch Network

Jet Bank has been presented as Albania’s first fully digital, branchless bank. Its model relies on remote account opening, online services and digital customer interaction rather than physical branches.

Elvin Meka, vice rector of Tirana Business University College and dean of its Faculty of Business and Law, said Jet Bank was the Western Balkans’ first fully digital bank. He said the bank’s arrival was significant in a country where cash still plays a substantial role in the economy and where part of economic activity remains outside formal financial channels.

Meka said digital banks could help provide services to people who are unbanked or underbanked. He also said that greater use of formal digital payments could increase the traceability of transactions and support the wider formalisation of the economy.

Digital-only banking requires institutions to establish reliable methods for identifying customers, securing accounts, processing payments and meeting anti-money-laundering obligations. These operational issues are linked to wider European policy changes on payment access, data sharing and electronic identity.

Albania’s banking sector is regarded by local officials and industry representatives as one of the country’s sectors most closely aligned with EU standards. The sector’s further integration will depend on domestic regulatory progress, compliance with European requirements and the development of cross-border payment infrastructure.

EU Payment Reforms Address Digital Market Access

The EU’s proposed PSD3 and PSR measures are designed to replace and update parts of the current PSD2 framework. The reforms cover payment-service providers, electronic-money institutions, fraud prevention, consumer protections and competition in the payments market.

European Parliament and Council negotiators agreed provisions intended to strengthen protections against payment fraud and data breaches, improve transparency around fees and support a more open and competitive payment-services sector.

The reforms are also intended to address the position of non-bank payment providers. Payment institutions and electronic-money institutions often require access to payment infrastructure that has historically been controlled or operated by banks.

Andi Cristea, a member of the European Parliament, said payment firms have frequently needed to rely on banks for access to payment systems while competing with those same banks for customers. He said revised rules could provide payment firms with direct access to European payment systems.

Cristea also said banks would continue to hold structural advantages because of their deposit bases, established customer relationships and physical networks.

The legislative package is intended to modernise the payment-services market and reflect changes in how consumers and businesses make payments. Formal adoption by the Parliament and Council remains necessary before implementation begins.

Legal advisers reported in March 2026 that EU institutions had reached a provisional agreement in November 2025 and that final texts and formal adoption were still pending. The new framework is expected to enter into force in 2027, subject to completion of the legislative process.

Single Market Rules Could Affect Albanian Expansion

Digital banks seeking to serve customers across Europe must comply with rules covering licensing, supervision, anti-money-laundering controls, consumer protection, cybersecurity and personal-data safeguards.

Cristea said the EU needed to avoid creating separate digital-banking markets in individual member states. He said firms should not have to establish distinct operations in multiple countries to provide services across Europe.

He identified customer onboarding as one area where the single market remained incomplete. Remote onboarding requires a bank or payment provider to verify a customer’s identity and meet regulatory requirements without depending on a physical branch visit.

Aura Salla, also a member of the European Parliament, said the current PSD2 framework had not completely delivered equal market conditions for established banks and newer financial-technology companies. She said PSD3 and the PSR should help address remaining barriers to competition.

Salla said the objective should be a European payments market in which providers can operate under common rules rather than facing divergent national requirements. She said additional national conditions could reduce the practical effect of a harmonised EU framework.

Albania is an EU candidate country and is not part of the EU’s internal market. Albanian banks do not automatically receive the passporting rights available to authorised financial institutions within EU member states. Such rights can allow a firm authorised in one EU country to provide services in others, subject to applicable notification and regulatory requirements.

Cristea said Albania’s future access to European financial markets would depend on regulatory convergence, supervisory confidence and compliance with anti-money-laundering obligations. He said the process could develop progressively, beginning with payments integration and potentially extending to other areas as requirements are met.

Albania SEPA Participation Begins Cross-Border Payments Process

SEPA is intended to make euro payments simpler and more standardised across participating European countries. The framework covers credit transfers and other payment instruments, using common technical and operational rules.

The Bank of Albania said Albania’s inclusion in SEPA’s geographical scope followed the European Payments Council’s decision of 21 November 2024. The decision enabled Albanian banks and payment-service providers to apply for participation in the relevant SEPA schemes.

On 10 April 2025, the Bank of Albania announced that applications had been submitted for the SEPA Credit Transfer scheme. The process involved the Bank of Albania, the Albanian Association of Banks and the country’s commercial banks.

The central bank said all Albanian banks had prepared applications to join the scheme. It said payment-service providers that completed the required procedures could begin processing SEPA cross-border credit transfers from the start of October 2025.

Albania’s entry into SEPA came alongside the inclusion of Moldova, Montenegro and North Macedonia. The step forms part of efforts to connect financial systems in the Western Balkans and neighbouring countries more closely with European payment infrastructure.

Meka said the Albanian banking sector was ready to absorb developments linked to SEPA, supervisory alignment and open banking.

Financial Data Framework Expands Open Banking Discussions

The EU is also considering a broader financial-data access framework, known as FIDA. The proposal would build on open-banking arrangements by allowing consumers to authorise the sharing of financial information beyond payment-account data.

The framework could allow consumers to share data held by banks, insurers, investment firms and other financial institutions with a provider selected by the customer. The intended scope includes financial products such as current accounts, mortgages, insurance and investments.

Salla said the framework could allow customers to see information about several financial products through a single platform, even where those products are held with different providers.

The proposed system would be based on customer consent. The final legislative framework would determine which data categories are covered, what technical standards apply and whether providers can charge for access to customer-authorised information.

Cristea said high charges for data access could make it difficult for smaller companies to compete. He said consumer data should be portable and controlled by customers rather than being retained exclusively by the institution that holds the original account or product relationship.

For digital banking providers, customer-authorised data sharing can support services including account aggregation, digital financial management and assessments conducted during applications for financial products. The details of any EU-wide rules will depend on the legislative process and subsequent technical standards.

EU Digital Identity Wallets Affect Customer Verification

Remote identity verification is central to branchless banking. Financial institutions must establish a customer’s identity, complete required checks and apply secure authentication procedures before allowing access to financial services.

The EU Digital Identity Wallet is intended to allow individuals to store and present verified electronic credentials, including identity information, through a secure digital system. EU member states are required to provide at least one wallet by 2026.

The digital identity programme includes technical guidance and common specifications intended to support compatibility between national wallet systems. It has published an Architecture and Reference Framework and related resources for wallet implementation.

Under the revised eIDAS framework, banks, payment-service providers and other relevant financial institutions are expected to accept the EU Digital Identity Wallet for processes involving strong customer authentication by the end of 2027, subject to the legislation’s detailed scope.

Cristea said digital identity systems could play an important role in allowing customers to use financial services across national borders. He said portable identity could reduce the need for repeated onboarding processes when a customer moves between providers or countries.

Salla said questions remained over whether the wallet systems would be fully functional and widely adopted by the 2026 deadline.

The wallet initiative is intended to give users a secure method of proving identity and sharing verified attributes online and in person. Its use in financial services will depend on the availability of national wallet systems, compatible credentials and implementation by regulated firms.

Albania Digital Finance Requires Skills and Security Investment

Meka said Albania’s digital-finance development would require continued investment in specialist skills, cybersecurity systems and access to financing for new companies. He cited digital literacy, consumer trust, cybersecurity, data analytics and artificial intelligence expertise as relevant areas.

He also referred to Albania’s e-Albania public-services platform, which provides more than 95 per cent of public services digitally. The system has expanded the use of electronic public administration services in the country.

Digital public services and digital banking operate under different legal and technical structures. Both depend on accessible digital infrastructure, secure identity verification and public confidence in electronic services.

Albania’s entry into SEPA, the launch of a fully digital bank and the EU’s emerging payment and identity rules place the country’s financial sector within broader European discussions on electronic payments and cross-border digital services. The practical effects for Albanian banks and payment companies will depend on the completion of SEPA participation procedures, the implementation of EU legislation and Albania’s continuing regulatory alignment with European standards.