Dashe Bank S.C. is going to launch an agent banking service by the end of the 2014 making it the first bank in Ethiopia to render the service.

It was in August 2014 Dashen secured a license from the National Bank of Ethiopia following the promulgation of the Regulation of Mobile & Agent Banking Services Directive back in 2012.

The Directive defines agent banking service as, “the conduct of banking business on behalf of a financial institution through an agent using various service delivery channels, other than the Bank’s own tellers or cashiers”.

According to Chaneyalew Demissie, E-Banking Services Manager, the license the Bank received from the National Bank enables it to render cash deposits, payment and card systems, excluding loan services.

He furthered the Bank is currently dealing with agents which by the time the service is launched will be four. Nonetheless, the number of the agents is planned to increase 20.

The to be launched system is going to enable the Bank reach people who do not have access to banks, Estifanos Befekadu, Head of Promotion Division at the Bank, explained. The system is 50 percent cheaper than opening a new branch.

Chanyalew disclosed Dashen is working with the California based mobile financial services software company, mFino, for the customization of its system. Dashen is going to be working with the firm for the coming five years.

“We will finalise the installation and start the soft launch by the beginning of December with the four agents we are dealing with,” Chaneyalew noted. “The Bank is selecting agents that can come up with a business license, financial audit and clearance from police showing that they have no cases pending at court.”

According to Fortune the agents are going to be get commission.

Source: Fortune