Ethiopia Launches National ID–Bank Account Harmonization Initiative

Addis Ababa, December 10, 2025 (FMC) — Ethiopia officially launched the integration of the Fayda National Digital ID with bank accounts today, marking a major milestone in the country’s financial sector digital transformation.

The initiative, jointly implemented by the National Bank of Ethiopia (NBE) and the Ethiopian National ID Program, aims to enhance financial security, prevent fraud, and provide citizens with efficient access to banking services.

National Bank of Ethiopia Deputy Governor Solomon Desta described the launch as a “key milestone” for modernizing the financial sector. He said the integration will facilitate legal transactions, curb illegal activities, and reinforce regulatory compliance.

Ethiopian National ID Program Director General Yodahe Arayaselassie Zemichael noted that the system will securely link citizen data with banking platforms, strengthening the protection of personal information while enabling seamless banking access.

Fayda Digital ID, a core pillar of the national economic agenda and the Digital Ethiopia Strategy 2030, is designed to enable digital services across sectors, ensure accessibility, and provide a foundation for digital public infrastructure.

Under the new system, banks will harmonize customers’ accounts with their 16-digit Fayda Alternative Number (FAN). Customers can link accounts in person at bank branches or online, following the procedures set by each bank. Those not yet registered for Fayda must first register at the nearest registration center. All harmonization is expected to be completed by early April 2026.

The harmonization will allow customers to transfer money securely, access credit services, and manage multiple accounts under a single identity. Banks will also be able to obtain accurate, up-to-date information, preventing fraud from fake identities and supporting the financial sector’s digital infrastructure.

Banks are transitioning from the older Verifayda 1 system to the upgraded Verifayda 2 (eKYC service via EthSwitch) for opening new accounts and linking existing ones. Technical support is being provided by the NBE, the National ID Program, and EthSwitch technology experts to ensure a smooth migration. Following the transition, the Verifayda 1 system will cease operations.

The NBE and National ID Program emphasized that the integration will not only strengthen the financial sector but also contribute to Ethiopia’s broader digital transformation goals. Banks are taking measures to ensure customers do not face any inconvenience during the process.