- Commercial Bank of Ethiopia (CBE) has recently adjusted its service charges, in particular introducing new fees for digital banking.
- The adjustments were made in response to a system failure in March, which resulted in a large number of unauthorised withdrawals of funds.
- As the largest bank in Ethiopia, CBE is responding to technological advances and industry challenges while working to maintain its leadership position in the country’s financial sector.
New service charges and system glitch response
CBE has introduced new fees for previously free services, particularly affecting mobile money transfers. Authorised withdrawals remain free, but digital banking account-to-account transfers now incur fees, ranging from $0.05 for transfers between $0.02 and $180 to $0.36 for transfers over $5,400. Mobile transfers to Tele Birr and other wallets will also see charges, with a maximum fee of $0.27 for transfers above $180. However, Internet Banking transfers to accounts at other banks will not experience major fee changes, providing some continuity for customers.
These adjustments follow a significant system glitch in March 2024, during a mobile banking system update, which allowed unauthorised withdrawals totaling between $14,300 and $179 million. CBE has since recovered over 97% of the lost funds, demonstrating effective crisis management. Nevertheless, the incident has highlighted the need for stronger technological infrastructure to ensure the reliability and security of CBE’s digital banking operations.
About Commercial Bank of Ethiopia
The government is working to make digital Ethiopia a reality through its 10-year perspective development plan and homegrown economic reform program. Financial institutions like ours are transforming their services accordingly.
Abie Sano, CEO of CBE
Reflecting on the bank’s ongoing efforts to enhance its digital banking infrastructure, Abie Sano, who is CEO of CBE, stated, “The government is working to make digital Ethiopia a reality through its 10-year perspective development plan and homegrown economic reform program. Financial institutions like ours are transforming their services accordingly.”
Commercial Bank of Ethiopia has been a cornerstone of the country’s banking sector since its establishment in 1942 as the State Bank of Ethiopia. Legally reconstituted as a share company in 1963, CBE has played a pivotal role in Ethiopia’s economic development. With over 2,000 branches and more than 40 million account holders, CBE is not only the largest bank in Ethiopia but also a vital institution in the nation’s financial ecosystem. The bank has embraced digital innovation, with over 6.6 million mobile and internet banking users and more than 8.3 million active ATM cardholders. The introduction of the CBE Birr mobile wallet, which now boasts 17 million users, underscores the bank’s commitment to expanding financial inclusion through technology.
