A lack of financial literacy is an issue that plagues more than two thirds of Albania’s population, according to a survey conducted by the Bank of Albania.
The results found that only 29% of those surveyed possess the minimum necessary financial knowledge. This translates to a financial literacy index rating of 3.7 out of 7, while the global average is 4.4.
Just over half of Albanians could identify at least five financial products, compared to 83% globally and 86% in OECD countries. Less than 40% used a financial product in the last year, compared to the global average of just under 50%.
In terms of loans, Albanians prefer to turn to friends and family to borrow money instead of the banking system, with 33% pursuing this method compared to around 43% internationally.
Just 29% of the population said they had payment products while 22% had a savings product. Some 13% had credit products while just 9% engaged with securities products.
Sadly, financial literacy was lower for women, with young people aged between 18-29 and those over 60. Other factors that were present with low-literacy individuals include unemployment, disabilities, or being a student. In addition, those in rural areas had a much lesser understanding of the financial sector.
