Fayda Digital ID to Become Mandatory for Banking Services as Ethiopia Begins Nationwide Account Harmonization

The National Bank of Ethiopia has kicked off a nationwide push to connect existing bank accounts to Fayda digital IDs, requiring banks to match and link long-standing customer and account records with national identity data.

The move, announced on Wednesday, sets April 8, 2026, as the final deadline for nationwide implementation. Addis Ababa, Dire Dawa, and regional administration capital cities have been given a shorter timeline, with a deadline of January 8, 2026.

To link bank account numbers with Fayda identity information, customers are instructed to complete the process either by visiting bank branches in person or through online channels, depending on procedures set by each bank. Customers are required to provide their Fayda alternative number, a six-digit AN number, as part of the linking process. 

The regulator has urged customers who are not yet registered for Fayda to register before proceeding with account linking. NBE also says banks are putting the necessary prerequisites in place to minimize inconvenience during implementation.

Fayda is positioned as one of the core enablers of the country’s economic agenda and the Digital Ethiopia Strategy 2030. As of September 2025, Fayda digital ID enrollment stands at 25 million, while the number of bank accounts in Ethiopia and mobile wallets had reached 272 million by mid-2024.

Ethiopia’s updated Digital Ethiopia 2030 strategy targets expanding Fayda digital ID enrollment to 70 million by 2027.

The integration of Fayda with the banking system is expected to reduce the risk of identity fraud and misuse of accounts through forged documentation. It also means multiple bank accounts will be linked to a single verified user identity.

The new transition also includes a wider upgrade of banks’ electronic know-your-customer systems. Since the start of 2025, beginning in the capital, banks have been requiring Ethiopians to present a Fayda national digital ID to open a bank account, using the Verifayda 1 system. Under the updated implementation plan, all banks are expected to fully transition from Verifayda 1, the older eKYC service, to Verifayda 2 for both opening new bank accounts and linking existing accounts.

According to the NBE, in preparation for the shift, EthSwitch has been providing technical support and monitoring to help banks migrate smoothly to Verifayda 2, described as a more modern and integrated eKYC service delivered via EthSwitch, with continued support expected in the future. Following the migration, the Verifayda 1 system will stop providing services.