Albania to launch fast payment system and expand credit scoring data

Albania is introducing significant updates to its financial infrastructure. In November, a new fast payment system, described as a 'TIPS Clone' similar to those used in the EU, will go online. This system will allow citizens and businesses to complete transactions within 30 seconds, 24 hours a day, through integrated banking applications.

Valentina Semi, Deputy Director of the Payment Systems Department at the Bank of Albania, noted that the system aims to provide real-time liquidity, making it cheaper and more efficient than card transactions. The transition from cash to this digital instrument is estimated to save approximately 1.5 billion lek in its first year if half of current payments shift to the new system. Notably, users may be able to send money using only a recipient's phone number instead of an IBAN.

Additionally, a new framework for private credit bureaus is being established. This expansion will broaden the scope of financial history used for credit scoring. Beyond traditional bank loans, the information used to assess an individual's or business's creditworthiness will now include overdue tax obligations and other mandatory payments.

Positive credit data will be stored for three years following the conclusion of a credit, while negative data will be kept for five years after a debt is settled. The Ministry of Economy and Innovation stated that this broader data set aims to provide banks with better risk assessment while facilitating easier credit access for citizens with good payment histories.