ZamZam Bank Kicks Off Sharia-Compliant Digital Finance in Partnership with Kifiya

A pioneer in interest-free banking services in Ethiopia, ZamZam Bank has launched Ansar, a Sharia-compliant digital financial service.

Developed in collaboration with Kifiya Financial Technology and the Bank's digital product team, the official launch event took place on Thursday at Haile Grand Hotel.

Ansar stands as one of the very few Sharia-compliant digital lending solutions in Ethiopia, catering to both individuals and Micro, Small, and Medium-Sized Enterprises (MSMEs). Leveraging AI, the platform ensures a secure, efficient, and flexible digital financing application process.

Melika Bedri, CEO of ZamZam Bank, highlighted that Ansar addresses financial challenges faced by MSMEs in expanding their businesses while also empowering women entrepreneurs. The platform operates as a Buy Now, Pay Later (BNPL) platform, connecting three key stakeholders: the client, the product supplier, and the bank.

"We are offering an e-commerce platform where suppliers of various products are onboarded. Over two hundred suppliers have already joined, with our team engaging them directly," stated Kediru Getabe, Director at ZamZam Bank.

Ansar currently offers loan options ranging from 100 to 500,000 birr without requiring collateral. Its digital customer management system facilitates loan monitoring and repayment, while alternative data sources are utilized to assess creditworthiness.

The financing process is straightforward: once users select a product, the platform forwards the order to the supplier. After document verification and loan approval, the supplier delivers the product, and the bank subsequently transfers the payment to the supplier's account.

The Ansar platform is available on the Play Store, with efforts underway to launch it on the App Store as well.

In March 2024, ZamZam introduced an innovative mobile banking app that operates without an internet connection. As users interact with the app, commands are transmitted to the core banking system via USSD.

While full-fledged interest-free banking got the regulatory green light in late 2019 after being limited to a window service for seven years by the central bank, its digital financial innovation has been quite limited.

Dashen Bank has also recently launched a Sharia-compliant digital financial service through a modified version of Dube Ale, a buy now, pay later platform.