The National Bank of Ethiopia (NBE) has announced its readiness to introduce digital identifications (IDs), named Fyda, for all financial institutions as part of efforts to modernise the country's financial services.

With support from the World Bank, the government aims to implement a nationwide biometric digital ID system, intending to register all eligible Ethiopians by the end of 2025. The NBE's initial focus is to onboard all financial sector customers to the digital ID platform during the 2023/24 Ethiopian fiscal year. This move is part of the NBE's broader efforts to modernise the financial sector and increase financial inclusion by reducing entry barriers.

Implementing the digital ID as a primary bank ID is also expected to enhance transparency, stability, and security in the financial sector while aligning with national plans to support the digital economy. The digital biometric ID will include personal and sensitive information such as name, gender, iris scan, fingerprints, date of birth, address, and a photograph. The NBE emphasises that legal and technical safeguards, including cybersecurity and data protection principles, will be upheld during the process, ensuring compliance with the existing legal framework. Additionally, using digital IDs in Know-Your-Customer (e-KYC) processes is expected to enhance access to financial services and improve service delivery standards.