From Cash to Electronic Money: Albania as Case Study - Economicus

by, Arbi Agalliu, Megi Kurushi

Abstract

Albania is classified among countries with middle income by the World Bank classification. Like many other developing countries, the income per capita in Albania is limited. The aim of this paper is to study the alignment of individuals in this country to technological banking services and in particular the acceptance by individuals resident in Albania transition from cash to bank money. Using data collected on the field, this study aims to describe the adjustment of financial literacy in the Albanian mentality. Consumer behavior, the stories of the past and mentality play a key role in the approaches to the banking system. The results of this study will help banks and financial institutions to implement successful strategies to educate the population to lead consumers to an easier acceptance of services and changes in the banking system. Empirical analysis concludes that the transition to electronic money system is a process that should not be imposed but it will happen automatically as the country climbs the stairs of development.