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Ethio telecom and Dashen Bank partnered to provide digital financial services for low-income earners, by offering micro-credit, overdraft, and micro-saving services. The micro-credit service allows individuals, agents, and merchants to borrow and withdraw money for any transaction while the overdraft service under the name telebirr Endekisse allows borrowing money when there is a shortage of balance in their telebirr account
Ethio telecom and Dashen Bank partnered to provide digital financial services for low-income earners, by offering micro-credit, overdraft, and micro-saving services. The micro-credit service allows individuals, agents, and merchants to borrow and withdraw money for any transaction while the overdraft service under the name telebirr Endekisse allows people to borrow money when there is a shortage of balance in their telebirr account. Telebir sanduq, is a savings service that is available with interest-free and interest rate-based micro saving services, without collaterals. Creditworthiness of the customer is the criterion. The amount of credit is determined by an AI-enabled credit scoring system which bases its calculations on the individual’s telebirr transactions and telecom usage.
The launch of telebirr digital financial services is expected to have a significant effect in ensuring the economic inclusion of the wider community and reinforcing the company’s commitment and contribution to the realization of digital Ethiopia. The National Bank of Ethiopia gave a go-ahead to Ethio telecom to launch these services earlier this year as part of the ongoing reforms to strengthen the Ethiopian digital economy.
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Telebirr, digital cash that enables 22 million of its users to access financial services, has a total of Birr 32 billion transaction value. Among other services rendered by digital cash include: users are allowed to transfer money locally and make purchases online and at convenience stores.
