The performance of online banking services in Albania

Abstract This study investigates the progress of online banking services in Albania over a 16-year period (2008-2023). Data analysis on electronic banking metrics reveals a significant rise in electronic banking activity, with a growing preference for these channels compared to traditional cash-based transactions. Notably, the proportion of bank accounts accessible online has steadily increased, suggesting a rise in internet banking penetration. Further examination of the relationship between the number of online accounts and internet banking transactions could reveal a potential positive correlation, indicating that as more accounts become accessible online, there may be a corresponding rise in online banking activity. While limitations exist, such as potential influences from unaccounted factors (demographics, internet access, security trust) and the non-normal distribution of some variables, this study offers valuable insights. Future research avenues include investigating the factors driving online banking adoption in Albania, analyzing customer satisfaction with security and user-friendliness of online banking platforms, and exploring the impact of mobile banking on internet banking usage and future trends. Overall, this study highlights Albania’s positive progress in online banking adoption. Continued investment in digital infrastructure and public trust in online security can lead to even greater growth in this sector, potentially promoting financial inclusion and efficiency for Albanian banks and customers alike.