Page 7 - RBI FIntech Atlas 2018

7
Spotlight Albania
Skanderbeg monument and Albanian ag at Skanderbeg square, Albania
Although there is a developing and innovative startup scene in Albania most of the country’s ntechs are still at the early, seed nancing stage. However, there are also a small number of more advanced startups, particularly in the payment sector. The development of these and future ntech startups is expected to be encouraged
over the medium term by the incorporation of PSD2 into Albanian law by the Central Bank. The highlights for the ntech sector in 2018 included a number of innovation festivals and the local Elevator Lab Challenge, the ntech program of Raiffeisen Bank.
The biggest hurdle facing the sector is the lack of nancing. In the absence of more advanced tools most current ntech startups have been nanced either (privately) by their founders or via corporate loans. There are also some private VC funds of which SC Ventures is one of the more prominent.
A fragmented series of state initiatives is seeking to support the innovation and startup scene. For example, software
development companies have been eligible for tax relief since January 2019. (Co-)funded incubator programs (O cina) for early stage startups including ntechs have been established by a number of institutions such as the Harry Fultz Institute in Tirana. Albania’s universities, on the other hand, have yet to become directly involved in such initiatives.
The principal ntech transactions carried out during 2018 involved joint projects between banks and ntechs related to the launch of a range of products or services on the market. These included Raiffeisen’s cooperation with MPay – whose mobile app KUIK offers an instant payment solution – and with Symmetric, the winner of the local Elevator Lab Challenge.
As an emerging economy with a young population, Albania clearly faces a series of challenges – but it also offers enormous potential for development in such innovative areas as the ntech sector.
Country data
Population (M) 2.9
GDP total (€ Bn) 14 GDP per capita (€, at PPP) 11,425 GDP growth (%) 4.0
Of cial currency ALL
Source: Eurostat, IMF, European Commission, RBI/Raiffeisen RESEARCH Data for 2018, estimates
Total bank assets (€ Bn) 10 Total bank assets / GDP (%) 93
Account ownership (% of population) 40
Debit card ownership (% of population) 27
Internet usage (% of population) 66
Usage of internet to pay bills (% of population) 2
Send/received digital payments (% of population) 29
Latest available data as of 2017/2018
Source: ECB, national sources, World Bank, RBI/Raiffeisen RESEARCH