In Addis Ababa, possessing the Fayda Digital ID is becoming a necessity for accessing various services, including banking. However, banks operating in the city have so far mandated its use only for new customers, according to the National Digital ID Program.
Growing Significance of the National Digital ID
The adoption of digital identification systems is gaining momentum in Ethiopia, particularly in urban centers like Addis Ababa. With banks beginning to require the Fayda Digital ID for new account registrations, discussions around the ID’s broader implementation have intensified.
Despite the introduction of this requirement, authorities have clarified that existing bank customers are not yet obligated to obtain the digital ID to continue using banking services. This policy ensures a gradual transition rather than an immediate overhaul of identification requirements.
Authorities Clarify the Implementation Approach
Ato Yodahe Araia Selassie, head of the National Digital ID Program, explained that, for now, the Fayda Digital ID is mandatory only for new banking customers. However, he emphasized that, over time, digital identification could become a requirement across all institutions and services.
Recognizing concerns about accessibility, Yodahe assured the public that registration for the digital ID is already underway in all regions, including Addis Ababa. He stressed that the process is designed to be convenient, reducing potential difficulties in obtaining the ID.
Security and Economic Integration Benefits
Officials highlight multiple benefits of the digital ID beyond banking services. The system is expected to facilitate participation in the digital economy, improve financial inclusion, and enhance security by preventing fraud and identity-related crimes.
Moreover, the National Digital ID Program ensures that individuals’ data remains secure and will not be shared without consent, reinforcing public trust in the system.
Global Trends in Digital Identification
Digital ID implementation is a growing global trend, with countries adopting similar systems to streamline government services and financial transactions. According to Dr. Kedr Hussein, a data science and artificial intelligence expert, the global push for digital identity systems dates back to the 1990s.
Estonia, for example, initiated its national digital ID registration in 2001, setting a precedent for other nations. Similarly, India’s Aadhaar system has successfully registered a large portion of its population, providing a model for large-scale digital ID adoption.
Nationwide Expansion of Digital ID Registration
As the digital ID registration process continues across all Ethiopian regions, authorities encourage residents to obtain their IDs proactively. While its immediate requirement is limited to new bank customers, future expansions could see the digital ID becoming essential for a wider range of public and private services.
The gradual implementation approach reflects Ethiopia’s efforts to balance modernization with accessibility, ensuring that all citizens can benefit from a secure and efficient digital identity system.
