BY ELLENI ARAYA, AddisFortune

Without much deviation from its draft state, the long awaited directive that will allow banks and Micro Financial Institutions (MFI) to provide transaction-based mobile and agent banking services was issued, on January 1, 2013.

Now clients of banks and MFI’s, offering mobile banking services, will be able to make deposits and withdrawals through their mobile phones. They can also make payments to businesses or transfer money to clients using their mobile phones.

In previous years, the NBE had turned down requests from banks to launch transaction based mobile banking, stating it needed to issue this regulatory directive.

Instead those that had the technology were limited to providing clients with mobile services, such as; book transfers, viewing balance, mini-statements, notifications and alerts, on their phones. United, Zemen and Brehan banks were among those that offered such services.

Since these features were non-transaction based, the National Bank frowned upon calling the service ‘mobile banking’.

This led many banks, who had already acquired the technology to provide mobile banking, either along with their Centralised Online Realtime and Efficient (CORE) banking solutions or separately, in anticipation of the issuance of the directive.

As were mobile banking technology vendors, who had already set up shop inEthiopia, including Ireland-based M-Birr, which has signed a memorandum of understanding with ethio telecom, through its local branch. Bell Cash, an Irish company, is also in the process of setting up mobile banking with Bunna, Lion International, Oromia Cooperative and Wegagen banks.

Regulating this new system and building the capacity to regulate capital has taken time, according to National Bank officials.

The kind of mobile banking offered inEthiopiais one which makes use of agents that provide mobile banking services on behalf of mobile banking institutions. These services include; opening regular savings accounts for clients and performing ‘cash in cash out’ payments and transfer of funds, on behalf of the bank.

A client will have a ‘mobile account’ into which money is credited or debited, when using mobile banking services, according to the draft directive. The maximum balance that should be available in a mobile account, of an individual, is limited to 25,000 Br, and daily mobile banking transactions shall not exceed 6,000 Br, according to the directive.

This provision was, at one point, taken out of the draft directive, after some banks suggested that the limits should be raised to 30,000 Br and 10,000 Br, for balance and transactions respectively, according to a management team from one of the private banks.

However, the National Bank stuck to its original limits in the end.

The directive also places heavy responsibility on banks to make sure that agents comply with existing bank laws, including the ‘prevention and suppression of money laundering and financing of terrorism proclamation’ and ‘customers due diligence of banks’ directive.

Five banks, that Fortune talked to, have expressed pleasure at the issuance of the directive. They see it a great opportunity to reach ‘un-banked’ communities, in rural areas, and increase their deposit mobilisation.

The total amount of branches, from all fifteen banks existing in the country, is only 1,251, according to 2011/12 data.

“This is a meagre number when compared to neighbouringKenya, where the mobile service provider MPESA alone has 25,000 branches,” Berhanu Getaneh, president of both United Bank and the Bankers Association told Fortune. “The directive would bring an immense contribution towards increasing the number of people with access to banking services.”

Banks planning to provide mobile banking should first apply to the NBE, according to the directive. The application documents should include a detailed business plan, operational policy and procedure manual, and a risk management policy. The agents that the bank will use, and the type of agreement it will enter into, should also be clearly stated.

If the NBE approves the application, then the bank can start a pilot run that is limited to a specific area.

“It could start out with the main branch or use its own employees to test the system first,” Solomon Desta, Banking Supervision Directorate director, said.

Only after 2 to 3 months of pilot testing, and prevision a detailed report to the National Bank, could the bank launch full mobile banking services. This is if NBE allows the continuation of mobile banking services based on the results of the pilot project.

Banks that previously applied for mobile banking solutions would have to reapply accordingly, according to Solomon.

Already, interested banks are putting their minds to selecting appropriate agents.

“Supermarkets, gas stations and chain businesses are especially ideal to perform agency services for mobile banking,” Dagnachew Gessese, business development manager at Addis Bank told Fortune.

Views: 377

Tags: At, Banking, Ethiopia, Last, Legal, Mobile

Comment

You need to be a member of Sodere Ethiopian News and Entertainment to add comments!

Join Sodere Ethiopian News and Entertainment

SodereTube Ethiopian News

Searching for Arsi woman

Searching for Arsi woman

Benyam(Ben) Kebede view about Andargachew Tsige 2nd police interrogation video

Benyam(Ben) Kebede view about Andargachew Tsige 2nd police interrogation video

The Insider News Jul 28, 2014

The Insider News Jul 28, 2014

Entertainment news Jul 27, 2014 እሁድ መዝናኛ ዜና ሐምሌ 20/2006 ዓ.ም

Entertainment news Jul 27, 2014 እሁድ መዝናኛ ዜና ሐምሌ 20/2006 ዓ.ም

SodereTube Comedy

Zinq Funny and entertaining videos July 27, 2014

Zinq Funny and entertaining videos July 27, 2014

Betoch Part 67

Betoch Part 67

Funny Habesha Prank - Talk to people as if you met them before

Funny Habesha Prank - Talk to people as if you met them before

The Funniest And Most Stupid Laughs Ever

The Funniest And Most Stupid Laughs Ever

Betoch Comedy Part 66 (New Episode)

Betoch Comedy Part 66 (New Episode)

Top Content 

1 ክፍል 2 ‹‹ኢትዮጵያ ውስጥ የሰይጣን አምልኮ ለማስጀመር እየታሰበ ነው›› ደቀ መዝሙር ሜሎስ ተሾመ እና ዲያቆን እዩኤል ጌታቸው

ክፍል 2 ‹‹ኢትዮጵያ ውስጥ የሰይጣን አምልኮ ለማስጀመር እየታሰበ ነው›› ደቀ መዝሙር ሜሎስ ተሾመ እና ዲያቆን እዩኤል ጌታቸው

2 Confirmed: The fake Dr. Engineer Samuel Zemichael arrested in Kenya, will arrive in Addis today በሀሰት ዶክተር ኢንጂነርነት የተጠረጠረው ሳሙኤል ዘሚካኤል በቁጥጥር ስር ዋለ

Confirmed: The fake Dr. Engineer Samuel Zemichael arrested in Kenya, will arrive in Addis today በሀሰት ዶክተር ኢንጂነርነት የተጠረጠረው ሳሙኤል ዘሚካኤል በቁጥጥር ስር ዋለ

3 ለመኖሪያ ቤቶች ግንባታ የአገር ውስጥና የውጭ ባለሀብቶችን ለማሳተፍ ታቅዷል -የመንግሥትና የግሉ ዘርፍ ሽርክና ትኩረት ተሰጥቶታል

ለመኖሪያ ቤቶች ግንባታ የአገር ውስጥና የውጭ ባለሀብቶችን ለማሳተፍ ታቅዷል -የመንግሥትና የግሉ ዘርፍ ሽርክና ትኩረት ተሰጥቶታል

4 ክፍል 1 የሰይጣን አምላኪዎች ማህበር በኢትዮጵያ? - የሚስጥር ማህበርተኞች - ኢሉሚናቲ - ሰይጣን አምላኪዎች Devil worshiping, secret society

ክፍል 1 የሰይጣን አምላኪዎች ማህበር በኢትዮጵያ? - የሚስጥር ማህበርተኞች - ኢሉሚናቲ - ሰይጣን አምላኪዎች Devil worshiping, secret society

5 አቢሲኒያ ባንክ ‹‹ሐበሻ›› የተሰኘውን ኤቲኤም ካርድ ይፋ አደረገ Absinia bank introduced Habesha ATM card, launched mobile banking

አቢሲኒያ ባንክ ‹‹ሐበሻ›› የተሰኘውን ኤቲኤም ካርድ ይፋ አደረገ Absinia bank introduced Habesha ATM card, launched mobile banking

6 የሳምንቱ ገጠመኝ  የቢዝነስ ጥል በአዲስ አበባ  - This week's surprising incident - Fight over business in Addis Abeba

የሳምንቱ ገጠመኝ የቢዝነስ ጥል በአዲስ አበባ - This week's surprising incident - Fight over business in Addis Abeba

7 ይድረስ በኢትዮጵያ ለአሜሪካ አምባሳደር ጉዳዩ - ቪዛ ስለመከልከል Letter to American Ambassador in Ethiopia about my denied visa application

ይድረስ በኢትዮጵያ ለአሜሪካ አምባሳደር ጉዳዩ - ቪዛ ስለመከልከል Letter to American Ambassador in Ethiopia about my denied visa application

8 ይድረስ ለከንቲባው Letter to mayor of Addis Abeba

ይድረስ ለከንቲባው Letter to mayor of Addis Abeba

9 Update - Confirmed: The fake Dr. Samuel Zemichael arrested in Kenya "ዶክተር ኢንጂነር" ሳሙኤል ሳሙኤል ዘሚካኤል ኬንያ ላይ ተያዘ

Update - Confirmed: The fake Dr. Samuel Zemichael arrested in Kenya "ዶክተር ኢንጂነር" ሳሙኤል ሳሙኤል ዘሚካኤል ኬንያ ላይ ተያዘ

10 ክፍል 3 ‹‹የሚስጥር ማህበራት ዓላማቸው የአንድ ዓለም አስተዳደርን መመስረት ነው›› ወርቅአፈራሁ አሰፋ

ክፍል 3 ‹‹የሚስጥር ማህበራት ዓላማቸው የአንድ ዓለም አስተዳደርን መመስረት ነው›› ወርቅአፈራሁ አሰፋ

Events

SodereTube Sport

Gedion Zelalem vs New York Red Bulls ● Pre-Season 2014

Gedion Zelalem vs New York Red Bulls ● Pre-Season 2014

Amazing finish by Ethiopian Genzebe Dibaba coming from behind to win women's 5000m

Amazing finish by Ethiopian Genzebe Dibaba coming from behind to win women's 5000m

Ethiopia Sport Program July 12, 2014

Ethiopia Sport Program July 12, 2014

[Funny] David Luiz's Interview After Brazil-Germany Spoofed with Ridiculous Captions

[Funny] David Luiz's Interview After Brazil-Germany Spoofed with Ridiculous Captions

I am in love with Ethiopian football star Oumed Oukri. Help!

I am in love with Ethiopian football star Oumed Oukri. Help!

የ ፌስቡክ ጓደኛዎን ወይም ከኢሜይሎ አድራሻ ዝርዝር ወደ ሶደሬ.ኮም ይጋብዙ። You can now invite your Facebook friends and people in your address book to Sodere. It takes less than a minute. http://sodere.com/main/invitation/new

EthiopianTube Music

Balageru Idol - TeEzazu Asnakew

Balageru Idol - TeEzazu Asnakew

Dangla traditional dance group - Best performance of the day in dance category

Dangla traditional dance group - Best performance of the day in dance category

Balageru Idol - Kidest Tadele

Balageru Idol - Kidest Tadele

New Ethiopian Reggae Music Guadegnaye by Mieraf Assefa - ጓደኛዬ

New Ethiopian Reggae Music Guadegnaye by Mieraf Assefa - ጓደኛዬ

Bilen Mesfin - Balageru Idol dance contestant

Bilen Mesfin - Balageru Idol dance contestant

Ethiopian Videos

My boyfriend doesn't want to talk about marriage. What shall I do?

My boyfriend doesn't want to talk about marriage. What shall I do?

Heartwarming amazing love story

Heartwarming amazing love story

Who Are These singers? 1 million birr question from Metsehete Tebeb

Who Are These singers? 1 million birr question from Metsehete Tebeb

Imaginative Love Letter from a man inside the lost Malaysian plane by Addis Kassahun

Imaginative Love Letter from a man inside the lost Malaysian plane by Addis Kassahun

A surprising spy story about famous EPRDF politician

A surprising spy story about famous EPRDF politician

Ethiopian news and video portal. Sign in create profile, share videos, upload picture, invite your friends and have fun.

All Idol Shows (Balageru, Coca cola...)

Balageru Idol - TeEzazu Asnakew

Balageru Idol - TeEzazu Asnakew

Dangla traditional dance group - Best performance of the day in dance category

Dangla traditional dance group - Best performance of the day in dance category

Balageru Idol - Kidest Tadele

Balageru Idol - Kidest Tadele

Abel Berihun - Balageru Idol

Abel Berihun - Balageru Idol

Asnake Melese - Balageru Idol Audition 2

Asnake Melese - Balageru Idol Audition 2

© 2014   Created by Sodere.

Badges  |  Report an Issue  |  Terms of Service