Fayda Linked Accounts Pass 2 Million as Ethiopian Banks Escalate Efforts Ahead of April Deadline

The National Bank of Ethiopia’s nationwide push to link bank accounts with Fayda digital IDs has surpassed 2 million authentications, according to figures obtained from the national switch operator EthSwitch. Combining online registration, remote verification, and self-authentication services has allowed banks to handle high daily volumes efficiently. Up to 250,000 authentications are now being processed per day, reflecting a significant acceleration ahead of the April 8 deadline.

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The directive, issued December 10th as part of Ethiopia's broader National Digital Payments Strategy 2026-2030, requires all 31 commercial banks to transition from the older Verifayda 1 system to the more integrated Verifayda 2, which is a more modern and integrated eKYC service. This upgrade aligns with the strategy's Action 54 mandate for all financial institutions to embed Ethiopia's National Public Key Infrastructure, laying the groundwork for what policymakers call a "trust anchor" that could reduce KYC costs by an estimated 70% while eliminating mule accounts.

According to Seminas Seifu, Director of Stakeholders and Communications at the Ethiopian National ID Program (NIDP), implementation has so far progressed smoothly.

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“Although the entire process stays with the banks, including the data they fill, our main focus is on the quality of the data we receive,” Seminas told Shega.

Several banks have introduced remote registration options to ease the process for customers. Bank of Abyssinia, Awash Bank, Wegagen Bank, Commercial Bank of Ethiopia, and Cooperative Bank of Oromia have enabled online Fayda registration.

Zemen Bank offers a hybrid approach, allowing customers to call the branch where their account was opened, receive a one-time password, and complete the linkage remotely without visiting in person. These options have helped reduce congestion at branches and increase participation rates, even as the majority of the banks have yet to enable remote authentication. Bank of Abyssinia leads with over 320,000 authentications, followed by Awash Bank with around 270,000 as of December 30.

By mid 2024, the number of mobile money wallets and bank accounts stood at 272 million. Officials say this figure has increased since then. Meanwhile, the draft Digital Payments Strategy puts the number of mobile money accounts at 139.5 million in 2025.

Officials at the central bank have also not addressed what happens to the thousands of Ethiopians abroad who hold existing bank accounts and manage them from outside the country.

The authentication process is carried out through EthSwitch, which serves as the technical backbone connecting banks with the national digital ID system. The Commercial Bank of Ethiopia (CBE), which has the largest customer base in the country, began its integration and launched remote authentication two days ago. Abenezer Wondwossen, Chief Portfolio Officer at EthSwitch, said the entry of CBE marks a major shift in the process.

“Given CBE’s scale and nationwide reach, it is clear that the bank is likely to take the lead over private banks in a short period of time,” Abenezer told Shega. “Its participation will significantly push overall authentication numbers upward.”

The authentication surge builds on a foundation of 30 million Fayda registrations, with NIDP targeting 70 million enrollments by 2027 as Ethiopia races to meet its Digital Ethiopia 2030 targets. Critically, the December directive applies not just to traditional bank accounts but to all transaction channels within banks. With more than two million authentications completed and rising daily volumes across multiple banks, Ethiopia's transition to a unified, Fayda-linked banking system is entering a critical phase.