The Role of Technology in the Albanian Banking System and The Impact of Digital Payments on The Financial Performance of Banks

Abstract

In the past decade, technological advancements have profoundly transformed the banking sector by introducing innovations in the delivery of financial services and significantly impacting the financial performance of banking institutions. This article explores the role of technology in Albanian banking systems and the effect of digital payments on the financial performance of banks during the period 2015–2025. The main objective of the study is to analyze, both theoretically and empirically, the evolution of digital platforms and their impact on individuals’ financial behavior and banking efficiency. For the realization of this paper, both secondary and primary data were used. The secondary data were mainly obtained from scientific literature, articles from specialized journals, as well as reports from financial institutions. The primary data were collected through a questionnaire, which was used to examine individuals’ perceptions and experiences regarding the use of digital payments and banking technologies. The findings reveal a continuous increase in the use of digital platforms, a positive perception toward banking technology, and improvements in personal financial management, alongside higher financial performance indicators observed in the analyzed banks.