Addis Ababa, December 23, 2017 – In a landmark move to streamline banking services and promote financial inclusion, the National Bank of Ethiopia (NBE) announced that all banks in Addis Ababa must now require customers to present a Faida digital ID—commonly referred to as the “Faida number”—when opening a new account. This directive officially took effect today, December 23, 2017.
This change is part of a broader strategy for Ethiopia’s national digital ID, Fayda, to soon become mandatory for all transactions with financial institutions. According to a recent joint announcement by the NBE and the National ID Program, the plan is to enroll all bank customers for the digital ID during the 2023/2024 financial year. Once fully implemented, Fayda will serve as the primary ID for Know Your Customer (KYC) checks and remote onboarding, guaranteeing data privacy and security.
By using Fayda, banks expect to simplify identity verification, expedite account-opening procedures, and reduce paperwork—leading to faster, more reliable services for customers. The NBE emphasizes that the initiative also aims to significantly enhance transparency, stability, and security in Ethiopia’s financial sector.
This approach differs somewhat from Nigeria’s, where banks can issue cards that serve both as national IDs and for financial transactions. Meanwhile, Ethiopia—supported by the World Bank—is working on a MOSIP-based digital ID project to enroll all eligible citizens by 2025. In addition, the government recently partnered with IrisGuard to implement iris-based biometrics for benefits payments, signaling a broader commitment to technological innovation in public services.
With the new requirement now in force, banks across Addis Ababa are urging anyone planning to open an account to have their Faida digital ID ready to avoid delays. Financial analysts see this move as a key step in accelerating Ethiopia’s financial inclusion objectives and modernizing its banking industry.
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