Paperless banking has become a global trend, with financial institutions transitioning to digital transactions for greater efficiency, security, and sustainability. Many countries have embraced digital banking, mobile payments, and blockchain technology to reduce reliance on physical paperwork. In Ethiopia, banks are steadily digitizing their operations, paving the way for a fully paperless banking experience.
Leading this shift, the Cooperative Bank of Oromia has pioneered the transition by launching over 200 “Smart” branches nationwide. These branches provide seamless, paperless banking services using tablet technology specifically designed for this purpose.
Building on this momentum, many Ethiopian banks are now planning their own transitions to paperless banking to enhance cost efficiency, align with global banking trends, and contribute to the success of Ethiopia’s Digital 2025 strategy. “It’s not possible to remain separate from the international business system,” said Yohannes Million, Chief Digital and Information Officer at Dashen Bank. “Paperless banking is the global standard, and adapting to this trend is not optional—it’s a necessity.”
He added that traditional banking operations come with significant costs. “Fuel expenses, office rent, staff recruitment, and system purchases often require foreign currency. A digital banking approach eliminates these costs, saves clients’ time, and enhances convenience.” He also noted that an increasing number of clients prefer digital services over visiting physical branches.
While the digitalization of banks is commendable, one critical factor must not be overlooked: digital literacy among rural communities. As banks transition to paperless services, many rural customers may struggle to adapt due to limited access to technology and digital education. Without targeted awareness campaigns and user-friendly platforms, the shift toward digital banking could widen the financial inclusion gap rather than bridge it.
According to Yohannes, over half of Dashen Bank’s clients now use digital services. “In urban areas, demand is growing rapidly. Rural communities are also adapting, as seen in the Ethiopian Commodities Exchange, where farmers transact digitally,” he noted. He added that Ethiopia’s Digital 2025 initiative will further enhance digital literacy, accelerating the country’s transition toward a fully digital banking ecosystem.
Yohannes made these remarks during the launch of M-PESA Safaricom’s partnership with Dashen Bank and CashGo to enhance international remittance services. The collaboration allows Ethiopians to receive money directly into their M-PESA wallets from abroad, offering a seamless and secure way to access funds. This milestone enables instant remittances, which can be used for transactions such as sending money, bill payments, airtime purchases, or cash withdrawals from agents. He stated that this partnership marks a significant step toward digitizing banking services in Ethiopia.
