Awash Bank looks to catch up to its peers in the digital banking arena through its new mobile wallet, Awash Birr, and adopting a "super-agent model" to expand its electronic reach.

Awash, which started operations in 1995 with 24.2 million Br in equity raised from 486 shareholders, is the most capitalised private bank and the only one with a paid-up capital exceeding the minimum threshold capital of five billion Birr set by the central bank last year. The first private bank incorporated following the domestic liberalisation of the financial sector almost three decades ago, Awash serves over six million customers.

Nonetheless, Awash Bank has not been on the lead in the digital and technological fronts among its peers. Dashen and Abyssinia banks have advanced in acquiring cutting edge technologies, introducing digital wallet platforms years ago.

Awash Bank uses an Unstructured Supplementary Service Data (USSD) service and mobile banking solution, registering 3.6 million customers. It transacted about 1.5 billion Br annually through its USSD service, most of which came from Ethiopian Airlines ticket sales and telecom payment services. The digital wallet platform it launched last week offers features such as mobile top-up, cash-in and out, balance inquiry, money transfer, and payment options for airline tickets, cable TV, and school fees.

The services are available in six languages, including Amharic, Afaan Oromo, and Somali.

The wallet charges one Birr for each balance inquiry request, while withdrawals and transfers cost between two and six Birr depending on the amount. Based on the agent banking directive issued two years ago, daily transactions through mobile banking and wallet services cannot exceed 6,000 Br. Abyssinia charges five Birr for every transaction of 1,000 Br.

The wallet is available in a USSD programme, which can be used on non-smartphones and Android and iOS operating systems applications.

Close to 1,300 agents and 680 branches serve Awash as agents, while 4,100 merchants and 590 schools in Addis Abeba and other regional states accept payments through Awash Birr.

“Awash is working to remain competitive in the digital banking sphere, devising a digital finance strategy developed by international experts,” said Tsehay Shiferaw, president of Awash Bank.

Last year, Awash struck a deal with Rays Microfinance. This institution has a large presence in the Somali Regional State, establishing interoperability and enabling Awash to use Rays' mobile money service Sahay.

Incorporated in 2014 with a paid-up capital of 10 million Br, Rays manages Sahay, which has grown to include over 2,400 agents and 10,000 merchants on top of over half a million users since its launch in February 2020.

Agent banking services are relatively new to the industry. They were first introduced following a central bank directive issued in 2012, with Dashen, Hibret and Lion banks among the pioneers in the field.

Since the decade, banks have introduced dozens of mobile wallets bundled with agent banking, including Abyssinia and the Commercial Bank of Ethiopia (CBE). The state-owned giant has the most extensive network with 25,000 agents and over 5.5 million customers. Another state-owned mobile money service provider, Ethio telecom, which launched Telebirr a year ago, had 11 million active users, over 7,000 merchants and 25,000 agents by last November.

However, the figures are a fraction of what M-PESA, a Kenya-based mobile money service provider, has managed to achieve over 15 years of operation. Owned by Safaricom, M-PESA operates with 200,000 agents and 300,000 merchants.