PSD3 – Financial Services in EU. What about Albania?

The European Commission’s proposals for PSD3 and PSR aim to modernize PSD2 and promote innovation, competition, and consumer protection in financial services. Albania, as an EU membership candidate, is working to align its legislation with EU standards but has not fully complied with GDPR regulations or implemented open banking legislation. Automation of financial activities in Albania is currently limited, requiring the use of individual bank e-banking systems or physical visits to bank branches, although BTech has semi-automated processes for reading bank statements to streamline operations.

PSD3: Enhancing financial services in the EU. What about Albania?

PSD3 – Financial Services in EU

In a significant development for the future of financial services, the European Commission has presented proposals for PSD3 and PSR. Payment Services Directive 3 (PSD3) and the Payment Services Regulation (PSR). These reforms aim to modernize the existing structure of PSD2 and promote innovation, competition, and consumer protection. While PSD3 captures the attention of financial institutions and fintech companies across Europe, it is important to explore the potential impact of these changes.


The Proposal:

The introduction of PSD3 marks a significant step in the development of European payment services. Building upon PSD2, which aimed to promote an integrated and efficient payments market in Europe, PSD3 aims to improve the existing structure by ensuring secure electronic payments and expanding the diversity of payment service providers for consumers. The proposals also focus on facilitating data access, stimulating innovation, and promoting healthy competition in the financial sector.


Key Features and Enhancements:

PSD3 includes several important enhancements that can improve the future of finance. These include:

  1. Open Banking Improvement:

PSD3 introduces specialized interfaces for data access, eliminating the requirement for banks to support dual entry interfaces. This increases the efficiency and security of electronic transactions.

  1. Protection against Frauds:

PSD3 proposals include the expansion of compensation rights for victims of fraud. As well as the establishment of a mandatory system to verify bank account names with IBAN numbers and strengthen consumer authentication protocols.

  1. Equal Competition:

PSD3 ensures access for all payment service providers to the European payment systems, increasing competition and reducing costs for consumers. This also ensures equal access for both payment institutions and electronic money institutions.

  1. Streamlining Processes:

The PSD3 proposal aims to consolidate electronic money institutions and payment institutions under a unified system. As well as integrate all applicable payment regulations for payment service providers into a single, directly applicable regulation.


PSD2 implementation in Albania? 

What is the current status of Albania in implementing PSD2 and Open Banking? As an EU membership candidate, Albania faces specific challenges in aligning itself with these regulations.



GDPR is a crucial data protection regulation that outlines guidelines for the collection, processing, and storage of personal data within the European Union and the European Economic Area. This regulation holds significant importance in safeguarding financial data as well. Although Albania is not an EU member state, it is actively working towards harmonizing its legislation with EU standards as part of its path to EU accession. However, Albania has not yet achieved full compliance with GDPR regulations.


Open Banking

Open Banking refers to a system that enables third-party financial service providers to access banking data. With customers’ consent (regulated by GDPR). With the aim to offer innovative financial services. Currently, Albania has not implemented similar open banking legislation. Unfortunately, this matter does not appear to be a priority for Albanian institutions, despite the potential benefits it can bring to businesses and individuals. Considerable efforts are required to build the necessary infrastructure and establish a legal framework that would allow third-party payment service providers access to bank data.


Automate payment processes with BTech

How can we automate financial activities related to bank transactions in Albania?

Presently, we do not have the ability to initiate payments or check account statements directly from our financial systems. Our options are limited to using individual bank’s e-banking systems or physically visiting a bank branch office to perform fund transfers, which often involves waiting for hours to receive such services.


Semi automation with Business Central

However, BTech has successfully semi-automated processes related to importing and applying various transactions by reading bank statements in formats provided by banks. Through their e-banking platforms, such as text, Excel, or XML formats. This streamlines the daily operations of finance departments in our businesses, significantly reducing the time required for bank reconciliation and minimizing errors.


Waiting for the legistlation!

We eagerly anticipate concrete steps from Albanian authorities to enforce banks to provide integration channels with financial systems like Business Central, which would further simplify the work for our finance staff users.


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