Dashen Bank launches Ethiopia’s first digital ID–based accounts

Dashen Bank has launched a new digital onboarding system, making it the first commercial bank in Ethiopia to link account opening directly to the national biometric identity database, Fayda. This system allows customers to open bank accounts remotely using only a mobile number and their Fayda credentials, eliminating the need for in-person branch visits. Dashen Bank states this will streamline access for unbanked populations and supports digital-first financial services. The launch also includes a Mastercard-enabled virtual card for international online payments and remittances, with future updates expected to support additional contactless payment functions. Dashen Bank promoted the launch with a TikTok-based content competition and a referral program for university students, with the launch event held at Addis Ababa University’s School of Commerce. Fayda has registered 40 million Ethiopians, an achievement recognized by the Modular Open Source Identity Platform MOSIP, which has been instrumental in the digital ID’s development. MOSIP noted that Ethiopia’s national ID program has enrolled over a quarter of the population in less than two years and integrated over 130 government agencies and private institutions. Ethiopia aims for 90 million digital ID enrollments by 2026 as part of its digital transformation strategy, which also includes teleSign, a digital signature platform to enhance trust and legal binding in online transactions for all government services.