Banks in Albania reducing number of branches across the country

Banks are further reducing their network of branches this year.

According to data from the Albanian Association of Banks AAB, at the end of September, the number of branches and agencies fell to 494, from 503 at the beginning of the year.

The same trend was observed during last year, when banks closed 15 different branches.

Since 2012, the number of branches and banking agencies has decreased by 62 units.

In the wake of the financial crisis, most banks have followed a more cautious spending policy.

This has also led to the closure of a part of the inefficient branches.

The reduction in the number of branches also relates to the downsizing strategy followed by the majority of foreign-owned banks.

However, in addition to the need to reduce costs, shrinking the branch network will also be a feature in the business model, given the growing role of technology in society and the economy.

Expanding remote Internet services and mobile phones will reduce the necessity of an extended physical presence of banking branches.

However, Albania is still far from mass remote banking services and, compared with other countries, there is a low penetration of banking units.

It is estimated that Albania has about 17 banking branches per 100 thousand inhabitants, one of the lowest in the region.

Other countries have a concentration of bank branches in the range of 25 to 30 branches per 100 thousand inhabitants, with the exception of Montenegro, where the density of banking units is much higher, with 43 per 100 thousand inhabitants.

SCAN

*Material i përgatitur nga portali SCAN. Ripublikimi mund të bëhet vetëm kundrejt citimit të autorësisë dhe burimit origjinal.