The National Bank of Ethiopia (NBE) has officially launched the nationwide harmonization of all bank accounts with the Faida Digital ID, marking a major milestone in the country’s digital transformation agenda.
The initiative is part of the Digital Ethiopia 2030 Strategy, which positions the Faida ID as a core pillar of Ethiopia’s emerging digital public infrastructure. The integration aims to modernize financial services, strengthen security, and streamline access for millions of bank customers.
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According to NBE, the harmonization process enables every bank account in the country to be securely linked to a customer’s unique Faida ID. Once the integration is fully implemented, customers will be able to:
- Transfer money safely from anywhere
- Prevent unauthorized account transfers made with fake documents
- Access credit services easily with verified digital identity
- Use all their bank accounts through a single Faida ID
Banks will also benefit from accurate and up-to-date digital identity information, enabling stronger fraud prevention and improved customer service.
Deputy Governor Solomon Desta emphasized the importance of the move, noting that “this harmonization helps to control illegal activities,” highlighting the role of the digital ID platform in combating fraud, identity theft, and related financial crimes.
Migration to Verifayda 2 Underway
All banks have begun the shift from the old Verifayda 1 eKYC system to the modern Verifayda 2 platform, an integrated eKYC service delivered via EthSwitch. Technical support teams from NBE, the National ID Program, and EthSwitch are actively guiding the migration.
New account openings and existing account harmonization must now be conducted exclusively through Verifayda 2. Once the transition is complete, Verifayda 1 will be entirely phased out.
Customer Requirements and Deadline
Bank customers must link their accounts with their Faida ID by March 30, 2018 E.C. Those not yet registered for Faida are required to visit the nearest registration center first.
Account harmonization can be completed:
- In person at any bank branch, or
- Online by submitting the Faida Alternative Number (6-digit AN Number), depending on each bank’s procedure.
NBE confirmed that banks are taking steps to minimize inconvenience during the migration.
Scaling the Integration
With more than 300 million bank accounts involved across the banking system, the harmonization process is one of the largest digital identity–financial sector integrations ever undertaken in Ethiopia.
NBE stated that rapid implementation will be crucial not only for the financial sector’s modernization but also for Ethiopia’s broader digital transformation journey.
