The Nation’s two pioneering institutions, Commercial Bank of Ethiopia and Ethio telecom which are the key enablers of comprehensive development and growth of the Nation, have officially launched today telebirr based digital micro credit and micro saving services that can enable citizens get fast, easy and secured alternative financial services at their convenience, thereby ensuring banking and financial services outreach and bridging the financial inclusiveness divide countrywide.
The micro credit and micro saving services jointly launched today under the principle of Financial Service for All are readily available in non-collateral platform for Individual customers, Merchants and Agents based on their telebirr transaction credit score and salary payments via telebirr. The four digital financial services to be offered are:
Sinq: an interest free or interest rate based micro saving financial service that enables telebirr customers to securely save money with ordinary and locked options,
Enderas: a service that allows individual telebirr customers get a micro credit service of up to 15, 000 ETB based on their telebirr transactions & services usage,
Deldiy: a micro credit service that allows Merchants/Agents to borrow up to 50, 000 ETB to run startup or expand existing businesses and
Adrash: a credit service for employees of private and public institutions whose monthly salaries are paid through telebirr service and enables them to borrow up to 50,000 ETB.
This digital financial services jointly launched by both pioneering institutions are unique for customers both in rural and urban areas for they can equally enable them get loans without the need for collaterals. In addition, being customer of Ethio telecom and telebirr as well as based on transaction frequencies, the customers can get a loan service through calculated credit score supported by an artificial intelligence system. Repaying loans on time and making wide transactions enable customers to maximize their credit score or the amount of money they can borrow. The Commercial Bank of Ethiopia, has been providing extensive banking services to the nation for a solid 80 years, has deployed latest banking technologies, highly improved its operations & services and is playing a leading role in promoting technology-supported banking services. In a recent memory, it’s recalled that the bank’s deposit volume has exceeded 1 trillion ETB and it is further advancing its achievements towards realizing its 2025 set vision of becoming a commercial bank of international standard.
In its 80 years stay in the financial sector, Commercial Bank of Ethiopia has been serving as a backbone of the nation’s economy, thereby remarkably contributing to the enhancement of the country’s economic activities. It has also left a remarkable legacy in enhancing the financial sector accessibility, increasing a national saving, maximizing foreign currency earnings, enhancing the nation’s import and export trades, introducing new and the state of the arts services, supporting Ethiopia’s development needs and helping the financial sector to become healthy. Parallel to this, this public owned bank, is engaged in highly discharging its corporate social responsibility by financially supporting the projects of government institutions, charity organizations and other institutions that have great impacts on the community’s social and economic growth.
The Commercial Bank of Ethiopia is leading Ethiopia’s digital money transfer by implementing various digital platform options. Furthermore, taking the growth of digital money transfer as a strategic pillar, the bank is undertaking a number of activities in its part to ensure the financial service inclusion. The bank will provide loans in cooperation with Ethio telecom so as to increase financial inclusion and will continue to further strengthen such activities and initiatives to achieve the overall development of Ethiopia.
As a pioneer telecom service provider in Africa, Ethio telecom has been resiliently serving the nation for about 129 years with high level of passion and commitment. The company, beyond its connectivity services and as part of its aspiration to be a leading digital solutions provider, launched telebirr digital payment system two years ago which has now acquired a subscriber base of over 34.05 million within a short span of time.
It is noted that telebirr digital payment platform has been an instrumental pillar in revolutionizing the digital transformation and in building the digital economy of the country, particularly the launching of the economically impactful digital financial services: Micro loan, Overdraft and Micro saving services has brought significant and meaningful changes for the financially underserved and unserved segment of the society.
In the years ahead, the two pioneering institutions of the Nation will be committed to further strengthening their partnership in digital financial services and other potential areas of cooperation that can result in transforming our society’s lifestyle and resiliently advancing their journey towards realizing digital Ethiopia’s set vision.
JUNE 27, 2023
ETHIO TELECOM AND ETHIOPIAN COMMERCIAL BANK