Let’s face it, the world is going digital, and banking is no exception. In Ethiopia, many are now wondering if the days of long lines at the bank are finally behind us. The big question is: Can you actually open a bank account from the comfort of your own home, using just your phone or computer? Well, the answer, according to Asrat Kifle, Manager of Neo Banking(Apollo) who we sat down with for this interview, is a resounding YES!
Apollo a digital banking service, is making waves by offering the option to open digital bank accounts online. This is a game-changer for many, making financial services way more accessible. No more running to a branch and filling out piles of paperwork. One of Apollo’s key features is its fully digital onboarding process, allowing customers to easily create and manage bank accounts without visiting a physical branch. But how exactly does it all work?
Here is a breakdown of Apollo’s digital onboarding process:
- Initial Information: The process begins with the customer providing necessary personal information through a secure online platform.
- Identification Verification:
- Ethiopian citizens are required to provide their National ID card (Fayda number).
- Foreign nationals must provide a valid passport, along with a visa or residency permit, and potentially a work permit or employer letter.
- Contact Information: All users are required to provide a valid mobile number and email address for account authentication and communication.
- Biometric Verification: To enhance security, Apollo may use biometric verification methods such as fingerprint or facial recognition.
- OTP Verification: During the onboarding process, a six-digit One-Time Pin (OTP) is required to validate the user’s identity and ensure a secure account setup.
- Account Creation: Once the required information is verified and the OTP is validated, the customer can create and manage their bank account
Who Can Open an Account Online?
First things first, you need to be at least 18 years old and have a valid government ID. If you’re an Ethiopian citizen, your National ID card (Fayda number) is what you’ll need.
Now, for our friends from other countries living in Ethiopia, the process is a tad different. You’ll need your passport with all the necessary details, along with proof of your visa or residency permit. If you’re working here, make sure you have your work permit or an employer letter handy.
Regardless of where you’re from, you’ll also need a mobile number and email address for the bank to get in touch with you. For security, Apollo might use biometric verification like fingerprint or facial recognition too.
Important Note: Apollo follows strict rules to keep your money safe. This means that everyone has to go through a verification process.
What Kind of Accounts and Loans are Available?
Once you’re set-up, you have a choice of accounts: either a standard savings account or a Wadiah savings account which is for Islamic banking.
But wait, there’s more! Apollo isn’t just about savings; it also offers digital loans. However, to get a loan you must meet certain criteria. Apollo has an updated system to make sure loans go to people who are likely to pay them back. This means things like having a temporary account or a history of missed payments could affect your chances. Also, you need to have been a Bank of Abyssinia (BOA) customer for more than six months.
The way loan limits work is based on a methodical cycle system that rewards people who have paid their previous loans on time. If you are a first-time borrower, you start at the first cycle. Each cycle unlocks the possibility to borrow a higher percentage of your salary. Asrat Kifle highlighted that they also have different loan limits and cycles for BOA staff and for other salaried individuals as well as for microloans.
For those who are not BOA staff or seeking a microloan, a score is used to figure out how much you can borrow, ranging from “Excellent” to “Poor.” Your loan limit will be based on your score, your deposit, and your loan cycle.
A Word About Charges
Nobody likes surprises when it comes to money, right? So here is the breakdown of the costs for loans. The service charge is 2% weekly, 4% monthly, and 10% quarterly. It’s important to keep these in mind to properly evaluate the cost of the loan.
The Best Part?
During our interview, Asrat Kifle also made it clear that there are no extra fees to open an account online compared to in-person, and online accounts have all the same features as traditional ones. This is great news for people who prefer the convenience of online banking without any downsides.
The Bottom Line
So, can you open a bank account online in Ethiopia? Yes, you can. Services like Apollo are simplifying the process of managing finances and enhancing accessibility to banking for many Ethiopians. With online accounts and loans readily available, banking has become more convenient. For those looking to finance personal projects or fill in the gaps in their monthly budget, Apollo offers loans, with a maximum limit of 100,000 Birr (available for individuals who receive their salary through the Bank of Abyssinia), making it easier to access funds when necessary.