Ethiopia banks harmonize customer account information with Fayda digital ID

The National Bank of Ethiopia (NBE) has issued a directive calling on all banks and financial institutions under its control to make sure the account information of customers aligns with that of their Fayda digital ID.

As part of the move, the NBE has set a strict deadline for all active bank accounts in all parts of the country to be linked to the Fayda digital ID. The integration process started on December 1 and will end on March 30, 2026.

The NBE said in a press statement issued on December 10 that the main objective of the move is to further support the country’s digital transformation agenda and ensure seamless integration of citizen data, in line with the Digital Ethiopia 2030 strategy.

With the data harmonization, bank customers will be able to easily transfer funds between banks, access their bank accounts using a single national ID, use banking services more conveniently, and allow banks to maintain accurate and up-to-date customer records, thereby improving service delivery and enhancing financial inclusion.

Per the central bank, customers can complete the integration either using a mobile app or by visiting their bank branch in-person.

“All customers are urged to complete this integration before the deadline. New customers who have not yet registered for a national ID must first complete registration at designated centers before opening an account,” the NBE directed. Banks recently received 2,000 biometric kits to carry out Fayda enrollment.

With regard to new bank account opening, the apex bank instructed all banks to do so using the VeriFayda 2 digital Know Your Customer (eKYC) system.

“Previously, banks used the VeriFayda 1 system for account opening. Moving forward, all banks will transition to the enhanced VeriFayda 2 system (EthSwitch eKYC Service), which offers improved functionality and security. This upgrade was developed with the support of Ethiopian technology experts and will continue to receive ongoing support,” the statement reads.

“Accordingly, banks are mandated to migrate from the old VeriFayda 1 (eKYC Service) system to the new VeriFayda 2 (new eKYC Service) system for both new account openings and the harmonization of existing accounts. The VeriFayda 1 system will be discontinued upon completion of this transition.”

This new move by the NBE follows another directive earlier this year for banks to require the Fayda digital ID for all banking transactions. The measure is being implemented in some regions of the country, and a nationwide enforcement will begin on January 1, 2026. Ethiopian citizens in the diaspora were given a two-year waiver from the policy.

The NBE’s data harmonization directive comes just days after national payment switch EthSwitch singed a partnership agreement which it hopes should make Ethiopia a nation with the best digital payments network by 2035.

Article Topics

banking  |  Digital Ethiopia 2030  |  digital ID  |  Ethiopia  |  Fayda  |  financial services  |  KYC  |  national ID