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The National Bank of Ethiopia (NBE) has officially launched the integration of the country’s new digital identity system, Fayda, with all financial institutions—marking a major milestone in Ethiopia’s push toward a fully digitized financial ecosystem.
The initiative aligns with the Digital Ethiopia 2030 Strategy, which positions the Faida Digital Identity as a foundational digital public infrastructure designed to modernize service delivery, enhance financial access, and strengthen national security systems.
According to NBE, the harmonization of customer bank account information with Fayda Digital ID has formally begun across all banks. The integration will allow customers to link all their bank accounts under a single Fayda ID, enabling secure money transfers, fraud prevention, streamlined credit access, and protection against unauthorized account movements using fake documents.
How the System Works
Banks will now utilize the upgraded VeriFayda 2 system—an enhanced electronic Know Your Customer (eKYC) platform operated through EthSwitch. The older VeriFayda 1 system will be fully phased out once migration is completed.
Customers can link their accounts by:
- Visiting their bank branches in person, or
- Using online channels where available
To link accounts, customers must provide their Fayda Alternative Number (FAN)—a unique 16-digit identifier.
NBE has set a deadline of March 30, 2018 (EC) for all customers to complete the harmonization.
Who Needs to Register
Any bank customer who has not yet registered for Fayda must first enroll at the nearest Fayda registration center. Banks are currently preparing support mechanisms to reduce customer inconvenience during the transition.
Sector-Wide Implementation
On November 25, 2018 (EC), NBE circulated a nationwide implementation schedule for:
- New Account Opening using VeriFayda 2
- Existing Account Harmonization for all banks
EthSwitch and NBE’s technical teams have been providing continuous on-site and remote support to ensure smooth migration to VeriFayda 2, which offers stronger data security, interoperability, and real-time verification.
A Cornerstone for Ethiopia’s Digital Transformation
NBE emphasized that the integration of digital identity with financial services will significantly reduce fraud, enhance service delivery, and lay the groundwork for a modern financial system. Beyond banking, the national digital ID is expected to support sectors such as healthcare, education, social protection, e-commerce, and public service delivery.
“The integration of digital identity with financial services is not only a sectoral reform; it is a crucial step in Ethiopia’s journey toward transformation,” the statement said.
