Let’s face it! In this exciting era of digitalization, banking is no exception. Here in Ethiopia, many are now wondering if the days of the traditional way are gone. The big question: Can one open a bank account using just a phone or a PC? The answer, according to Asrat Kifle, manager at BoA’s Neo Banking (Apollo),is a resounding YES!
Apollo, a digital banking option, is making waves by offering opportunities to open digital bank accounts online. This is a significant change, making financial services way more accessible. No more running to a branch and filling out forms.
Apollo‘s key feature is its fully digital onboarding process, allowing customers to easily create and manage accounts without visiting a physical branch. But how does it all work?
Here is a breakdown of Apollo‘s digital onboarding process:
- Initial Information: Customer personal information is saved in a secure online platform.
- Identification/Verification:
- Ethiopian citizens are required to provide their national ID card (Fayda number).
- Foreign nationals are required to provide a valid passport, along with a visa or residence permit, and potentially a work permit or employer letter.
- Contact Information: All customers are required to provide a valid mobile number and an email address for account authentication and communication purposes.
- Biometric Verification: Apollo makes use of biometric verification methods, such as fingerprints or facial recognition, to enhance security.
- OTP Verification: During the onboarding process, a six-digit One-time Pin (OTP) is required to validate the customer’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 his/her bank account.
- Important Note: Apollo adheres to strict rules to keep your money safe, meaning that every step has to go through a verification process.
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.
Apollo Accounts and Loans
Once you’re set up, you can choose between a conventional savings account and a Wadiah savings account, which is used for Islamic banking.
But wait-there’s more! Apollo doesn’t just offer savings; it also provides digital loans. To acquire a loan, you must meet certain requirements. Apollo has improved its system to ensure that loans are made to persons who are likely to repay them. This means that having a temporary account or a history of late payments may jeopardize your chances. You also need to have been a BoA customer for at least six months.
Loan limits are determined by a systematic cycle that rewards borrowers who have made on-time loan payments in the past. You begin on the first cycle if you are a first-time borrower. You can borrow a larger percentage of your earnings with each cycle. Asrat Kifle emphasized that they also have various lending cycles and limits for microloans, BOA employees, and other salaried individuals.For non-BOA workers seeking microloans, scoring is utilized to determine the amount of loan to be provided. Loan limits are determined by your credit score, deposit amount, and loan cycle.
Service Charges
Loan service rates are 2% per week, 4% monthly, and 10% quarterly. These are essential considerations in determining the cost of loans.
The Greatest Aspect
In comparison to opening an account in person, there are no additional costs, and online accounts offer all of the same advantages as traditional ones. For those who like the ease of internet banking without any drawbacks, this is great news
The Bottom Line
You can open an Ethiopian bank account online. For many Ethiopians, services like Apollo make banking more accessible and streamline the money management process. Banking has been more convenient since the introduction of online accounts and loans. Apollo offers loans with a maximum limit of Birr 100,000 (available to those who receive their pay from the Bank of Abyssinia), making it easier to obtain funds when needed.