The Role of Tech-Enabled Business Models in Enhancing Financial Inclusion: The Case of Albania’s Financial Sector
The Role of Tech-Enabled Business Models in Enhancing Financial Inclusion: The Case of Albania’s Financial Sector

Author(s): Aida Bitri, Arjela Dervishaj
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Financial inclusion; Banking services; Technology-enabled business models; Traditional banking operations; Financial service providers; Accessibility; Inclusive financial systems
Summary/Abstract: In today’s technological and business world it is crucial to ensure that everybody has access to financial services and can actively participate in economic activities, leading to faster economic development. Financial inclusion refers to the fundamental right of all individuals to access basic banking services, regardless of their socio-economic circumstances. Tech-enabled business solutions provide the necessary means to ensure financial inclusion, break traditional barriers, and ensure financial access for everyone, particularly to the unprivileged and marginalized groups. Financial inclusion is a global challenge, and middle-income countries like Albania cannot remain unaffected by its impact. In recent years, particularly in the post-COVID era, the financial system has maintained stability; however, several obstacles are encountered in attaining full financial inclusion. These primary obstacles encompass restricted availability of capital, particularly in rural regions and for specific demographic groups, low levels of financial literacy, and underdeveloped non-bank financial services. This study explores the impact of tech-enabled business models in enhancing financial inclusion. Considering the global challenge and the abovementioned obstacles, this research aims to answer the question of whether tech-enabled business models and tech-enabled efforts in traditional financial institutions can improve the financial sector and financial processes by enhancing and ensuring financial access to everyone. After conducting a thorough analysis and in-depth interviews with key financial service providers in Albania the findings reveal that integrating technology in financial services has led to positive changes in how financial organizations operate and communicate with their customers, and how tech-enabled business models expand financial services to marginalized communities.

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