The State owned giant, Commercial Bank of Ethiopia (CBE), is set to launch agent banking, CBE Birr, next month.
It has already gotten approval from the National Bank of Ethiopia (NBE) to pilot the system.
The move comes four years after the Bank started a feasibility study to provide the service. It enables users to process the transaction using mobile phones and reduces transportation costs and time for users.
"We will fully launch the service after securing a license from NBE," said Belihu Takele, acting communications manager of CBE.
The main actors of the CBE Birr system are CBE as a service provider, individual customers, agents and Ethio Telecom, the only mobile network provider in the country.
The CBE Birr system, according to Belihu, will help customers get a 24-hour service.
Also, CBE Birr will reduce the conventional way of processing money. To begin the service, going to the bank is unnecessary; instead, customers can withdraw or deposit money in the nearby agent without getting a bank account.
Regulation of Mobile & Agent Banking Services directive was issued in 2012. Eight banks have launched the agent banking system so far.
Dashen Bank S.C pioneered the service in December 2014. Abay Bank, Cooperative Bank of Oromia (CBO), Lion International Bank, United Bank, Nib Int'l Bank, Wegagen Bank and Oromia International Bank (OIB) then followed.(All Africa)