All transactions with financial institutions will soon need the use of Ethiopia’s national digital ID, Fayda.
According to an announcement made by the National Bank of Ethiopia, the country’s central bank, and the National ID Program, the plan is to enroll all bank customers for the digital ID during the fiscal year 2023/2024, in an effort to accelerate the government’s financial inclusion ambition. Customers will then use Fayda as their bank ID to complete KYC checks and remote onboarding.
Using the Fayda will make it easier for bank users to verify their identities in a system that, according to the statement, assures data privacy and security. The central bank has also stated that using the Fayda as main identification for banking operations will considerably increase openness, stability, and security in Ethiopia’s financial sector.
The method contrasts with that of Nigeria, where banks can issue cards that can be used for both national ID and financial activities.
Ethiopia is implementing a World Bank-supported MOSIP-based digital ID initiative, with the goal of enrolling all eligible residents by 2025. In addition, the country recently hired IrisGuard to provide benefit payments to individuals using iris biometrics.
