1.

Mobile Financial Services (MFS)

Mobile Financial Service (MFS) is the use of a mobile phone to access financial services and execute
financial transactions.

Mobile banking Refers to the actions performed on a traditional bank account. These actions
involve obtaining account information and transacting on accounts.

Mobile Money is a type of electronic money transferred electronically using the mobile
network and subscriber identification module (SIM) enabled devices, like mobile phones.

Mobile payments Are payments for goods and services using a personal mobile device as the
transaction terminal. Mobile payments can use a traditional bank account or a mobile money
account.

. Ethiopian Experience

The First Mobile Financial service provider in Ethiopia was M-Birr which is owned by five
Microfinance institutions (Amhara Credit and Savings Institution, Debit Credit and Savings
S.C., Oromia Credit and Savings S.C., Omo Microfinance S.C., and Addis Credit and
Savings Institution. Since its launch in 2015, M-Birr has built a network of more than 1.2
million users nationwide who deposit money at over 7,000 M-Birr locations (Agents). Even
though there were other competitors like CBE birr and hello cash, still Ethiopia is the least-
performing nation in the development of mobile money services. According to (GSMA 2017
report,2017), only 0.3% of the total population of the country uses mobile money services.

The reason behind the low adoption of mobile money in Ethiopia

 Underdeveloped telecom infrastructure;

 Network and connectivity problems;
 The high illiteracy rate in the country
 Agents’ liquidity management problems
 Lack of mobile phones on the part of beneficiaries in rural areas
 Beneficiaries have no prior experience or knowledge of financial services
 Beneficiaries located in the most rural parts of the country have poor infrastructure
and limited access to financial institutions.

5. Mobile Payment Eco-System

Bank of Abyssinia introduced a mobile money payment solution known as GizePay. The
service has been launched for public use in recent period. GizePay is an aggregated mobile
money platform that provides transactional and informative mobile wallet features by
ensuring;

GizePay Service Channels;

 USSD (*817#),
 Mobile Application,
  Web-based system

The mobile money ecosystem includes mobile money providers and all third-party
organizations that can benefit from mobile money, either by using it as a payment mechanism
or by leveraging mobile money accounts.

The mobile money ecosystem facilitates transactions from different sectors, such as retail,
utilities, health, education, agriculture, and transportation in addition to credit, insurance, and
savings.

In terms of the fund flow mobile money ecosystem is categorized into three those are;

1. Incoming values: It involves all incoming e-money to users’ wallets using cash in,
remittances or transfers, salary or bulk payment, etc. which in turn is used for payment
purposes.

2. Circulating values: It contains all electronic transaction payments for merchants or

billers in exchange for goods and services.

3. Outgoing values: It involves all cash-outs at agents or branch outlets.

All circulating values in the eco-system remain in the pool account of the merchants and
billers and ultimately remain as an electronic money deposit of the bank which can be used
by the stakeholders in the later period in the eco-system.

Outgoing values are costs to the bank which entail cash withdrawals at branches and agents’
outlets and ultimately reduce circulating value at merchants and billers.

Outgoing values can be reduced by providing efficient mobile money payment solutions,
creating better awareness, and availing capable customer support.

2. Features of BOA Visa branded cards -

Reading
Features of BOA Visa-branded cards
Dual Interface
Cross border International Transactions
International and Domestic Ecommerce payment
Types of Cards

1. International Cards
VISA debit Platinum
Visa debit Gold
Visa prepaid platinum
Visa prepaid gold
Visa prepaid classic
2. Domestic Cards
Visa debit platinum
Visa debit gold
Visa debit IFB gold
Visa debit IFB classic
Visa debit classic
Visa prepaid

5. Cards Eligibility - Reading

International Cards Eligibility
INTERNATIONAL CARDS
TYPE ELIGIBILITY
VISA Debit Platinum VIP retention accou
Visa Debit Gold retention account ho
VISA Prepaid Platinum VIP Travelers as per
VISA Prepaid Gold Travelers eligible to
VISA Prepaid Classic Travelers eligible to

Domestic Cards Eligibility

Domestic cards
TYPE ELIGI
Premiu
Visa Debit Platinum VIPs as
Corpora
Visa Debit Gold
VIPs as
Visa Debit Classic
Visa Debit Classic Adey
Visa Debit Classic Afla
Visa Debit Classic Balewuletawoch
Visa Debit Classic Ameen As per
Visa Debit Classic Ameen Zahara
Visa Debit Classic Ameen Fitayah
Visa Debit Classic Ameen Musinin
VISA Prepaid Classic
Cardless Transaction Money send/receive BOA C
Done: View Done: Go through the activity to the end

7. Card Fee - Reading

International Card Free
INTERNATIONAL
TYPE
VISA Debit Platinum
Visa Debit Gold
VISA Prepaid Platinum
VISA Prepaid Gold
VISA Prepaid Classic

Domestic Card Fee

Domestic
TYPE
Visa Debit Platinum
Visa Debit Gold
Visa Debit Classic
Visa Debit Classic Adey
Visa Debit Classic Afla
Visa Debit Classic Balewuletawoch
Visa Debit Classic Ameen
Visa Debit Classic Ameen Zahara
Visa Debit Classic Ameen Fitayah
Visa Debit Classic Ameen Musinin
VISA Prepaid Classic

5. Mobile Payment Eco-System

Bank of Abyssinia introduced a mobile money payment solution known as GizeP
public use in recent period. GizePay is an aggregated mobile money platform tha
informative mobile wallet features by ensuring;

GizePay Service Channels;

 USSD (*817#),
 Mobile Application,
 Web-based system

The mobile money ecosystem includes mobile money providers and all third-part
mobile money, either by using it as a payment mechanism or by leveraging mobi

The mobile money ecosystem facilitates transactions from different sectors, such
agriculture, and transportation in addition to credit, insurance, and savings.

In terms of the fund flow mobile money ecosystem is categorized into three

1. Incoming values: It involves all incoming e-money to users’ wallets using cas
bulk payment, etc. which in turn is used for payment purposes.

2. Circulating values: It contains all electronic transaction payments for merch

and services.

3. Outgoing values: It involves all cash-outs at agents or branch outlets.

All circulating values in the eco-system remain in the pool account of the mercha
an electronic money deposit of the bank which can be used by the stakeholders i

Outgoing values are costs to the bank which entail cash withdrawals at branches
reduce circulating value at merchants and billers.

Outgoing values can be reduced by providing efficient mobile money payment so

availing capable customer support.

Digital Banking Overview - Reading

Digitalization

Digitalization is all about;

 The use of digital technology to change the business model to provide new
opportunity;
 It is the process of moving to digital business;
 Opened both in banking and none banking industries;
 Rapidly taking over people’s daily life and business.

Digital Banking is the digitalization (or moving online) of all the traditional b
historically were only available to customers when physically inside of a bank bra
bring structural change.

Digital banking is making a bank fully digital and automated from front-office to
the use of internet banking, mobile banking, etc. at the front end, but also compr
automation from the back office too which includes straight-through processing
purely through electronic transfers with no manual intervention involved).
Shift from Traditional to Digital Banking Models

 The banking system is built around paper.

 Digital finance is built around the internet.
 Digital finance structures are designed for the digital distribution of Data in
 Traditional banking structures are designed for the physical distribution of p

Digital Banking Overview - Reading

Digitalization
Digitalization is all about;
Ø The use of digital technology to change the business model to provide new revenue and va
Ø It is the process of moving to digital business;
Ø Opened both in banking and none banking industries;
Ø Rapidly taking over people’s daily life and business.
Digital Banking is the digitalization (or moving online) of all the traditional banking acti
only available to customers when physically inside of a bank branch. It enables the banking in
Digital banking is making a bank fully digital and automated from front-office to back-office
banking, mobile banking, etc. at the front end, but also comprehensively covering entire bank
includes straight-through processing (STP) (an automated process done purely through electro
involved).
Shift from Traditional to Digital Banking Models
Ø The banking system is built around paper.
Ø Digital finance is built around the internet.
Ø Digital finance structures are designed for the digital distribution of Data in a globalized ne
Ø Traditional banking structures are designed for the physical distribution of paper in a locali
Major Benefits of Digital Banking
For the Bank;
Ø Business efficiency
Ø Cost savings
Ø Increased accuracy
Ø Improved competitiveness
Ø Greater agility
Ø Enhanced security
For the customer
Ø Prompt service
Ø Anywhere and anytime banking
Ø Cashless banking
Ø Online banking
Ø Saving in time
Ø More convenience
Ø More customer satisfaction

Go to next page

◄ Agent Banking Quiz . Online Banking

Online banking is accessing bank accounts and carrying out financial transactions
banking through PC, mobile phone, tablet, etc. Nowadays, online banking has bec
the world. It has a great chance to control accounts in easy way to make sure & u
banking avoid queuing up in bank branches by accessing their accounts directly f
smartphones.

Benefits of Online Banking

 Easy
 Convenient
 Improved cost savings
 Efficient
 Reduce security risks
 Improve access to financial services
 Give better control over your money
  Increase transparency

2. Digital Transaction Performance

Digital Transactions share as of June 30, 2022

 38% against Branch transactions (TT + FT);

 41% against TT transactions;
 28% against bank-level transactions (Branch + digital transactions)

Cross product %age share of Digital Transactions

 MB & Abyssinia Online Tran reached 4.7 million in count (24% for digital tra
(85% in digital transaction);

. BoA Mobile Money and Agency Banking

- Reading
1. BoA Mobile Money and Agency Banking

Bank of Abyssinia introduced a mobile money payment solution

known as GizePay. The service has been launched for public use in
recent period. GizePay is an aggregated mobile money platform that
provides transactional and informative mobile wallet features by
ensuring;

GizePay Service Channels; USSD (*817#), Mobile Application, Web-

based system

2. Benefits of GizePay’s MM and Use of Agents Services

Instant Payments between Wallets: the money transfer between

the payer wallet and the payee wallet happens within seconds,
instead of within hours or business days.

Convenient: mobile money accounts are always on the users’ hands

everywhere and customers can use them anywhere there is a mobile
phone signal. Customers can receive, store, spend and send money
all from the account on their mobile phone at different ends.

Low cost: In terms of time, effort, and transaction costs compared to

conventional services, BoA Wallet services are low-cost offerings.

Secure: transactions are safe and secure from end to end and also
follow all provisions of the applicable laws of the country. Mobile
wallets are secured with plenty of robust technologies, such as point-
to-point encryption, passwords, one-time password (OTP) via SMS,
and security questions.

Easy and Fast Self-Registration: As mobile wallets are all about

saving people's time and effort, self-registration is undeniably easy
and fast to transact.

Mobile Banking - Reading

1. MOBILE BANKING

 It refers to the use of a smartphone or other cellular devices to

perform online banking services.
 Mobile payment is becoming prominent as it enables
“anywhere anytime banking”.
 Unlike the other digital channels (ATMs, POS,), it does not pose
any limitations and did not need physical presence.
 A customer can access his/her account while waiting for a bus,
traveling, during night & holidays, etc.

Types of Mobile Banking in BoA

I. USSD

815# is popularly used for analogy phones. We can use them even if
we don't have access to the internet. Our USSD creation access for
new user creation ended on September 30, 2020, but it continues to
work for existing users. USSD mobile banking is used ARC
technology.
 II. Application/Web-based

This MB was launched on July 2020 under the name Internet

banking, but it was renamed mobile banking. We can allow access
through an application or a link. As of June 30, 2022, there are more
than 2.1 million active MB users, 4.7 million transactions, and 105.9
billion birrs in number and amount of transactions respectively.

Error Card issue types - Reading

Error Type Description

Not issued cards

Issued but not authorized

Code 187

Not correctly linked with correct account number/PAN

Code 104 The status of the cards is canceled (based on branch request)

Code 153 Temporary account (do not fulfill NBE directive/formality)

Code 176 Denied, fallback check

Code 111 Transaction failed due to invalid iCVV Value

Code 117 Denied, incorrect PIN

Card Sales and Activation Challenges -

Reading
General Challenge under card business (usage & activation) /Video
Lecture/

 Request more than one card with one account and customer
IDCard. (Mobile Banking)
 Cards are not issued for different reasons.
 The card was not issued with the first card requested account.
 Recruitment, request for those customers:
 Unwilling customer

Features of BoA Mobile Banking: What

service can we get? - Reading
a. Features of BoA Mobile Banking: What service can we get?

I. Manage beneficiary - it allows to predefine beneficiary details

for payment

 Create beneficiary
 List beneficiaries’
 Delete beneficiary
 II. Standing orders - allows viewing/checking the status of standing
orders already defined in mobile banking service.

III. Pay Or Transfer

 Transfer To Own Account: You can transfer money to own

account.
 Transfer to Other BoA Account: You can transfer from your
account to another person’s BOA account.
 Transfer to Other Bank Account RTGS: You can transfer
money from your account to another bank account.
 Transfer to Other Bank ET-Switch: You can transfer money
from one account to another bank by ET-switch by verifying the
account and name of the customer.
 Pay BoA Beneficiary: You can easily select your beneficiary
and send money.
 My BOA To LMTS: Send money from your account to anyone
who has a phone and can receive it from any branch.
 Load to Tele birr: You can load money to your and other tele
birr wallet.
 Send to ATM: Send money from your account to ATM and
withdraw cash without ATM card.

IV. Utility/Bill Payment Features

 School fee - You can pay your school fee by MB;

 Web Sprix - Pay your websprix fee;
 ET Ticket - Pay your air ticket easily;
 Water Bill Payment - Pay water bill payments;
 Ethio telecom - Pay your telecom utility payment;
 DSTV - pay your monthly DSTV fee;
 CANAL + Payment - Pay your canal+ payments;
 US visa - Pay US visa on Mobile Banking;
 We birr - Utility payment (Electric power and Water bill).

Services and KYC Requirements of

Customers - Reading
1. User (Customers) Services

"User" means a person who has an electronic money account and

uses the services of a payment instrument issuer; (NBE Directive No.
ONPSIOJI2020).

"Electronic money" means a monetary value represented by a

claim on its Issuer.

It has the following attributes:

(I) issued upon receipt of Ethiopian Birr, (ii) it is accepted as a means

of payment by persons other than the issuer, (iii) it has equal value
with other electronic money issued in Ethiopian Birr, (iv) stored on an
electronic device, like a chip, pre-paid card, mobile phone, tablet or
any other computer system;

A. User Registration

Mobile telephony offers tremendous promise to facilitate the flow of

money among users at much lower transaction costs, bringing the
bank to those currently unbanked. To use the system, customers
have to register using the following alternatively service channels;

USSD: users can register by dialing the service’s short code “*817#”
and filling in all the required fields.

Smartphone applications; customers can easily register using

mobile applications available on Google/app stores or can get the
apps from agents or branches of the Bank.

Web module: users can access and register for the service using a
web URL (https://gizepay.bankofabyssinia.com).

B. Main Customer Services;

Link account, Load Money, Cash-in (coupon),

· Transfer: This means the transfer of Electronic money from

Users wallet to another User, agent, biller, Boa account, or Merchant
wallet.

· Bill Payment: Payment of bill from the user's wallet.

· Mobile Airtime top-up, Purchase of Air time in exchange for
electronic money.

· Merchant Payment: Payment of electronic money to the

GizePay registered merchant for the product purchased or service
used.

· OTC Send: a transaction in which a GizePay user transfers

funds to an unregistered beneficiary in order for him or her to
withdraw cash from an agent or branch.

· Other: I.e. Change Language, Change Password, Change

security question, and Notification activation.

C. Customers Account Levels (NBE D.No ONPS/06/2021)

Level One: A maximum daily electronic account balance of ETB 5,000

Level Two: A maximum daily electronic account balance of ETB

30,000

If a user has more than one account with a similar Level; the
aggregate balance of all accounts shall not exceed the respective
category limit where the account belongs. If a user has more than
one electronic account with different Levels, the limit of the higher
Level shall apply. Walk-in users shall be subject to a single maximum
daily transaction limit of Ethiopian Birr 500. An electronic account
belonging to an agent and merchant shall have no amount limit for
transactions made about users. (NBE Directive No. ONPSIOJI2020).

D. KYC Requirements of Customers

Know Your Customer means a set of due diligence measures

undertaken by the Bank, including policies and procedures, to
identify a user and the motivation behind his or her financial
activities.

For Level 1; Full Name, date of birth, residential address, telephone

number, and a recent photo of the user.
For Level 2; the Full Name, date of birth, residential address,
telephone number, recent photo, and identity card of the user shall
be captured in the system.

Up on registration, new users shall be categorized under zero level.

Customer service levels (I and II) shall be upgraded by branches or
the Bank’s agents ascertaining fulfillment of the required KYC
requirement on both the system and Document. Branches and
agents are required to confirm or validate the document presented
by the user for service level upgrade.

A walk-in user or a user without an electronic account shall be

subject to Level 2 Customer Due Diligence requirements as
mentioned in the directive.

"Walk-in-user" is a person who uses the services of a payment

instrument issuer without having an electronic account. Directive No.
ONPS/01l2020

Unique Features of BoA Mobile Banking

b. Unique Features of BoA Mobile Banking

 Money sends to ATM - We can withdraw money without an

ATM card by using the money send feature after receiving the
secret code via SMS. This feature allows customers to send to
them self or other person they wish to send.
 Us visa - US visa payment is only made by the bank of
Abyssinia by using MRV.
 Transfer to Other Bank ET-Switch - You can transfer funds
from your BOA account to another bank's account. Here the
system verifies the account holder’s name.
 RTGS - You can transfer funds from your BOA account to
another bank's account. Note: Make sure the account and
beneficiary names are correct because the system cannot
verify them and make your transfer before 10:00 local time if
the amount of fund to be transferred is greater than
100,000.00 birr.
  Card services - You can request new ATM card and mange
existing card by using this feature.

Use of Agents Services - Reading

Agency banking is a way of providing limited-scale banking and
financial services through engaged agents under a valid agency
agreement.

Agents are a person engaged in a legal commercial/business activity

and have been contracted by the Bank of Abyssinia (BoA) to provide
the services of the Bank on its behalf in a manner specified in the
Directives of the National Bank of Ethiopia.

Agent Service

 E-wallet users’ registration; Registration of new customers or

users on the system.
 Cash-in: means the process by which a user exchanges cash
for electronic value and transactions resulting in an increase in
the user' electronic money account balance;
 Cash-out: means the process by which a user exchanges
electronic money for cash and transactions resulting in a
decrease in the user's electronic money account balance;
 Local Electronic money transfer: Transfer of Electronic
money from an Agent wallet to another Agent, User, Merchant,
or BoA bank account.
 Mobile Airtime top-up:
 Bulk upload: payment of electronic money or disbursing air
time from an agent's wallet to many beneficiaries at a time.
 Bill Payment: Payment of bill from the agent wallet to the
biller.
 OTC sends and receive; means a transaction that occurs when
a sender or a receiver does not use his or her own electronic
account. Instead, he transacts in cash with an agent who
executes the transaction on his behalf;
  Customer management; This Means managing the account of
GizePay User I.e. Level up Grade, Reseat Password, and
Activate Inactive User.
 Others I.e. Change Language, Change Password and Change
security questions.

Agents prohibited activities - Reading

1. Agents prohibited activities

Branches ensure that an agent shall not;

 Undertake agency business service beyond its designated

geographical area;
 Undertake transactions in the absence of system or network
connectivity;
 Deny issuance of receipt or advice to user and charge or collect
any fees from users directly;
 Undertake transactions when issuance of receipt or advice is
not possible;
 Open regular accounts, grant loans, carry out any appraisal
functions for purpose of opening an account or any other
facility except as may be permitted by any other written law to
which the agent is subject;
 Undertaking cheque deposit and encashment of cheque;
 Transact in foreign currency;
 Impose separate terms and conditions apart from those
provided by the Bank;
 Perform against or beyond the agency contract; and,
 Undertake other activities that are prohibited by a national
bank.

2. Eligibility of Agent

 Only local business entities that are owned by Ethiopian

citizens are eligible to be contracted as an agent for the Bank.
 An entity intending to be appointed as an agent shall own a
permit for a lawful commercial activity for at least six months
 immediately preceding the date of the application to become
an agent.

The following entities shall be eligible for appointment as

agents:

 Merchants who have already made to contract with the Bank to

accept payments with the Mobile Money payment solution
 Individual traders (sole proprietorship)
 Organizations incorporated in the form of partners shared
share companies
 Private Limited Companies
 Cooperatives and Unions, and
 Trusts and any other entity that the National Bank of Ethiopia
may prescribe.

3. Non-Eligible Entities of Agent

 Foreign person or entity that is fully or partially owned by a

foreign company.
 A religious entity that is faith-based.
 Not for profit such as non-government organizations whose,
applicable law prohibits from engaging in profit-making
business shall not be an agent of the Bank


 c. Transaction limit on BoA Mobile

Banking


Requirement /Eligibility for BoA Mobile

Banking
a. Requirement /Eligibility for BoA Mobile Banking
  BoA account holder is eligible to subscribe to BoA Mobile
Banking Services;
 Customer with the power of attorney entitlements designated
to use Mobile banking service;
 Customers with impaired/no vision with the presence of
witnesses and signing undertakings.
 The customer shall fill out the application letter which requests
the service, terms, and conditions;
 The customer shall have a phone, smartphone, Pc, or laptop.

b. Mobile banking renewal Period

 BoA mobile banking service shall be renewed every five years.

Agent Business - Reading

1. Agent Requirements (Sole Business)

Agent’s application letter and the name of the entity proposed

to be the agent;

 Copy valid business license, TIN, VAT Certificate, and Tax

Clearance Certificate or letter from an appropriate government
body explaining or permitting engagement in agent service (if
there is any limitation);
 Availability of funds to cover the agent banking operations
(float balance both hard and soft limit);
 Financial affairs for the last years audited or provisional (if any);
 A certificate of good conduct from the local police station;
 Physical location GPS coordinate (if any), postal address and
telephone number of the entity and its working hours;
 Renewed Kebele ID/Passport/Driving license and passport-size
passport size photograph of an agent;
 An agent must submit written consent from the regulatory
body (if required); and,
 Any other information the bank may require.

2. Requirements (Cooperative/Company/Plc) Agent

Agent’s application letter and the name of the entity proposed
to be the agent;

 Articles and memorandum of associations. The memorandum

and articles of association should indicate the intent of the
company to provide agency banking services in its list of
objectives and also clearly indicate the responsibility/authority
of the manager to sign an agency contract on behalf of the
company with the Bank;
 Valid business license, TIN, VAT Certificate, and Tax Clearance
Certificate or letter from an appropriate government body
explaining or permitting engagement in agent service (if there
is any limitation); A brief description of commercial activity that
the agent has been carrying on before the date of application;
 Evidence of availability of funds to cover the agent banking
operations including deposits and withdrawals by customers;
 Financial affairs for the last years audited or provisional (if any);
 Management profile of individuals involved in managing the
business and full address of the company;
 Renewed Kebele ID/Passport/Driving license of the company
manager; and,
 Any other information the bank may require.

3. Agent Due Diligence (ADD)

 Requires an examination of financial records and pertinent

documents for agents before entering into operation.
 In the identification, selection, and contracting of an agent,
branches of BoA are expected to exercise due diligence and
carry out a suitability assessment of an agent;
 In doing so, branches have to consider the following issues.

A. An agent should be a person including a cooperative engaged in

any commercial activity and have a permanent address;

B. Ensures that an agent has a well-established business (an

ongoing business) and ascertains the source of funds that an agent
has;
C. An agent should have a valid business license.

D. An agent shall have no negative record in the credit reference

bureau (if the agent is registered with the bureau);

E. The agent shall have the necessary funds, and readiness to carry
on the agency business service efficiently and safely;

F. Check whether an agent possesses the appropriate physical

infrastructure and human resources;

G. Audited/provisional financial statement at least for the last year,

(if applicable);

H. The agent shall have no criminal record in matters related to

finance, fraud, honesty, and integrity the Bank checks whether the
agent is trusted by the Bank or the community at large; and,

I. Shall check and verify whether or not a person intending to be

an agent is prohibited from carrying on profit-making business under
any applicable law.

4. Business Strength of Agent

Branches have to recruit agents based on the following criteria;

 Number of years in which a potential agent has been in the

business; an important indication of agents’ business
experience, market credibility, and Consumer awareness;
 Assess financial position and level of agents’ working capital;
which may suggest the ability to maintain sufficient cash and
float balance;
 Examine the credit profile of the business and the owner;
 Check daily customer footfall: the business has a good
aggregate of customer Footfall;
 Check documents of agents to validate agent’s business and
operational Capacity. The level of documents required shall
vary depending on the scale of the business;
 Agent’s working areas, cleanness of the shop/office, its
organization, and availability of sufficient space for conducting
 GizePay transactions; and Business hour: the average working
hours shall be more than 8 hours.

5. Reputation/Trust by the Community.

Branches have to evaluate the reputation of agents and the level of

trust by the community and business Partners based on the
following standards;

 Talk to the members of the community about an agent and

his/her/its reputation;
 Look at the agent’s reputation;
 Ensure that an agent has a regular deposit account in the Bank
of Abyssinia;
 Ask the community how long the shop or agent’s business has
been operating in that location; and
 If an agent has a credit contract, the branch requests the credit
information to learn about the repayment history and overall
creditworthiness of the agent.

6. Personal Information

 Examine the would-be agent's experience/years in the business

to determine an agent's maturity level and his/her/its ability to
make an appropriate decision.
 Knowledge, capability, and competency of an agent's staff to
provide GizePay services; and
 Ability of an agent to manage operational risk associated with
GizePay services

Agent Business Location, Recruitment,

training and operation - Reading
1. Business Location of Agent

 Branches must evaluate the business location of agents based

on the following standards;
 Proximity to banking infrastructure i.e., BoA branch;
  Agents’ outlet should be located within a manageable radius of
the bank branch;
 Agents must not be far apart more than one kilometer away
from their target market;
 The working area and offices of agents must be convenient to
customers and well protected;
 The office/outlet must be good sized and clean; and,
 There shouldn’t be another agent in the same vicinity providing
financial services for the Bank of Abyssinia.

2. Agents On-boarding

 Agent Onboarding is the process of integrating new agents into

the Bank and its working culture.
 Agent onboarding begins with the identification of focus
areas/businesses for the operation of agency banking.
 After the identification of focus areas, branches start agent
origination; it is the process of approaching and orienting
prospective agents for joint success.
 It is also the process of providing information on the intention
of the onboarding and showing all the benefits that the parties
draw for the business.
 After identifying a potential agent based on the stipulations of
the Agents Due Diligence procedure of the Bank, branches are
required to train them in the bank’s agency banking operation
process, the operating system, and Anti-Money Laundering
requirements related to the Agency business, and finally
provide AML and Certificates of Agency.

3. Focus Areas for Agents Recruitment

The following are some of the common areas for agents onboarding.
Based on these examples, branches have to look into their localities
and find better focus areas for agents’ business.

 Urban Market areas

 Rural Market areas (rotating market)
 Agricultural production areas Mining (gold, Opal, etc.)
  Tourist sites and recreational areas
 Industry Zones and Manufacturing areas
 Passengers/travelers corridors, etc

4. Agents Training

Agent training can take place either at the Agent’s premises on a one-
on-one basis or in a central location bringing larger numbers of
Agents together.

Training an Agent in his or her shop (outlets) ensures focus as well as

the practical application of the training. Some of the topics to include
in the training curriculum are as follows:

Agent responsibilities,

 Information on how to conduct transactions,

 How to generate QR codes, Customer registration, file handling,
 Transfer, AML training,
 OTC transactions, among others.

As with other elements of Agent management, the content, length,

and delivery of training depend on the local context.

5. Agent Operation

 Upon fulfillment of the KYC requirements, the agent will be

trained, and also the responsible branch ensures fulfillment of
the requirements and concludes the agency contract.
 The branches also have to ensure fulfillment of all the required
equipment for the service from the agent’s side and register an
agent in the E-Wallet system.
 Following the agent’s registration, the branch has to test the
system and provides full access to the agent for transactions.
Before the operation, branches have to ensure the following
issues;
 Availability of agent’s equipment for operation and
readiness of the system;
 Convene training to the agent;
  Fulfill agency certificate and stickers;
 Ensure fulfillment of all receipts;
 Ensure safety and soundness of the agent’s
office/premises for operation;
 Publication of the agent’s information on the Bank’s
website; and,
 Finally assist in the performance of transactions

Agent Monitoring and follow-up - Reading

1. Monitoring and follow-up of Agent

Checklists for Agents Monitoring

 At the time of visiting the agent, we should consider the

following points.
 Availability of Float, Cash, and log books
 Standards for Assistance, KYC, and Record keeping
 Visibility of Thematic advertising, Pricing poster, and Agent
number

Talents for Agent Follow-up

There are some tips here;

 Meet and Greets: The best way to make anyone remember you,
of course, is to make face-to-face contact.
 Classes/Workshops.
 Postcard gifts.
 Hand-written Notes.
 Timely Submissions of required materials.

2. Agents' Transaction Follow-up and Monitoring

Onsite visits should be conducted to ensure that the services

delivered by the agent are in a manner as expected and by the terms
of the contract and that the associated risks are being managed
effectively.
Agent monitoring at the premises of the agent shall include a
review of the following:

 Compliance of the operation with agent agreement and

procedures (including ID request);
 Level of customer service: the manner as expected and by the
term of the contract;
 Any customers charging (agents are not allowed to charge
customers for the services they provide);
 Appropriate referral of customers to complaints process;
 Liquidity - correlating complaints of lack of cash to particular
agents;
 Visibility of advertising/branding, agent number, and pricing;
 The complaint against agents and transaction process of
agents; and,
 Risk management framework: customer due diligence;
 The record-keeping and required KYC file handling,

3. Commission-Driven Transaction of Agent

Some agents may be involved in suspicious transactions to track

undue commission. So branches need to carefully monitor our
agent’s transactions. A simple indicator of commission-oriented
transaction.

 Equal value of Cash in and Cash out of the transaction

 Repetitive Cash in/Cash out for one customer
 Small customer wallet balance
 Amount loaded by the agent and his spending

So branches regularly monitor their agent by conducting periodic

follow-ups and monitoring on the transactions of the registered
agents by the respective branch.

4. Relocation, Transfer, and Closure of Agent Premises

No agent shall relocate, transfer or close its agent banking premises

without 30 days prior written notification to the Branch. Branches
have to require an agent to affix on agents’ business premises the
date of intended relocation or closure.

Abyssinia Online
1. Abyssinia Online

We deliver Abyssinia Online service to corporate clients as well as

licensed individuals. They can use a laptop or computer to manage
and control their company's account and financial activity (the link
for the service is corporate.bankofabyssinia.com). As of June 30,
2022, we have 28,873 active users, 28,685, and 5.069 billion birrs in
number and amount of transaction respectively.

1.1. Features of Abyssinia Online:

 View - All account, balance, All statement

 Payment - Own Account Transfer, Account to other BOA
Account, Other bank transfer both RTGS and Et-switch, and
Bulk payments.
 Other Services - Sweep Account and Loan Enquires

1.2.Types of Access in Abyssinia Online service:

There are three types of access in Abyssinia online (corporate

internet banking);

Inputter - This means that it can enter transaction data to initiate

the transaction, but it cannot debit the account until the authorizer
approves or decline the transaction.

Checker - This access is used to view their statement and it cannot

imitate data or authorizer transactions. This access only allows the
user to view the account.

Authorizer - This access is used to authorize pending transactions

that have already been made by the inputter access and this access
does not have inputter access.
Mandate in Abyssinia Online
Mandate in Abyssinia Online

Mandate means if the company has more than one authorizer for a
different range of amounts, the system segregates the level of
authority to authorize the transaction amount, which is a mandate or
amount limitation to be authorized on company transactions.

For example

 Authorizer 1 can authorize …. amount on single person or

 Authorizer 1 and 2 ………amount can be authorized. (But it must
be authorized by both authorizer) or
 It can be authorized at least by one authorizer.

General Requirements for Abyssinia Online banking service

 The customer has to be a corporate customer;

 Trade License, certificate, and TIN;
 Request letter for Abyssinia Online service;
 Corporate Account

Steps in Abyssinia Online Creation

Step 1- Create Arrangement: There are 3 types of arrangement.

Inputter, Checker and Authorizer (Create arrangement for each user
by their access on individual customer ID).

Step 2- Create Permission: Create only one permission by using the

company customer ID.

Step 3- Signatory define: This process only makes for the authorizer
access and allows us to define who are going to authorize the
company’s transaction.

Step 4- Set up mandate: Mandates are only one and created by the
customer-id and allows us to set the amount of money to be
authorized by each authorizer and with whom.
Step 5- Attach mandate: The mandate must be attached with the
company customer id in the customer detail section.

Step 6- External User: Create external user for each user access the
standard starts with COR…… (Individual customer id)

13. Termination of Agent Contract -

Reading
1. Termination of Agent Contract
Agency contract shall be terminated, if an agent:
 Has ceased main commercial activity;
 Is guilty of a criminal offense involving fraud, dishonesty, or other financial property;
 Sustains a financial loss or damage to such a degree which, in the opinion of a financial
institution, makes it impossible for the agent to gain its financial soundness within three
months from the date of loss or damage;
 Is being dissolved or wounded up through court or otherwise;
 Dies or becomes mentally incapacitated, in the case of a natural person;
 Relocate or closes its premises without the prior written consent of the financial institution.

1. Agent Termination Process

If the agency contract is terminated the following process has to be
maintained:
 Send or receive termination request
 Make account reconciliation for the required agent closely with Agent Banking Department
 Close the agent account
 Collect or remove all logos and promotional material from the agent's premises.
 The branch has to notify Agent Banking Department in writing every quarter termination of
the contract: demonstrating the name of the agent, the location of the agent, a notice of
termination to the general public, the reason, and date of termination
 The Bank removes the agent list from the bank portal and the agent banking department
portal
 After the above process, the branch should give the agent a termination letter
 Up on termination, the rights and obligations of the Bank and agent shall be settled by the
transition clause under agency contact

2. Reporting
Branches should submit to the Agent Banking Department at the end of every
month information on agency business operations including;
  Number of agents, Serial number of the agent, District of an agent, Responsible branch,
Specific location of the agent, Agent main business, Number of agents terminated, Number
of the new agent;
 Number of agents who relocated their premises, Type, value, volume, and geographical
distribution of operations or transactions, Customer complaints; and,
 Remedial measures taken to address customer complaints, Details of training and awareness
creation session conducted, and any other information required by Agent Banking
Department

3. Mobile Money risk and AML management of Agent

 The branch should facilitate AML training for their agents and provide AML training
participation certificates.
 After the training, agents should report the suspicious transaction on their premises within
24 hours to the respective branch.
 After receiving the report, the branch has to immediately forward it to the risk and
compliance department.

4. Reporting of Suspicious Transaction in Agent

All agents of the Bank must report any suspicion of money laundering or
terrorist financing. The possible sign of money laundering or terrorist financing
are:
 Frequent, High-Value Cash Transactions; - Criminals often accumulate large amounts of low-
denomination notes (e.g. drug dealers). Such transactions could also be an indication of
funds from illegal activities.
 Multiple Accounts; - A customer who transacts frequently using multiple accounts could be
trying to avoid looking suspicious therefore splitting the funds into various accounts.
 Fake/Forged Currency; - Customers who deposit fake/forged currency into their accounts
then withdraw at a different agency to get ‘clean’ money leading to agents incurring losses.
 Evading KYC Check; - Customers who repeatedly try to convince agents to transact without
presenting their ID documents could be doing so to disguise their identity due to the
irregular activities they are involved in.
 Invalid ID Documentation; - Customers who provide fake/expired ID documents for
registration purposes and while transacting (deposits and withdrawals) should be reported.
 Customers Transacting at Maximum Daily Limit; - Customers cyclically/daily transacting to
the maximum of their daily transaction limit without having a reasonable source of income
can be suspected and should be reported.

Go to next page

◄ Lesson1: Mobile Financial Service and Use of Agents

Benefits of Agent Banking Services -
Reading
5. Benefits of Agent Banking Services

Benefits to the Bank

 Compliment the Branch network;

 Increased customer base and market share;
 Increase the Bank’s footprint: Increased coverage with a low-
cost solution in areas with potentially less number and volume
of transactions (more visibility);
 Increased revenue from additional investment, and fee income;
 Reduce the cost of banking and requires smaller investments

Benefits to the Agent

 Increased sales from additional foot traffic (cross-selling);

 Differentiation from other businesses the agent might normally
operate;
 Reputation from affiliation with a well-known financial
institution;
 Additional revenue from commissions and incentives; and
 Acquisition of additional skills

Two Factor Authentication (2FA)

Application
Two Factor Authentication (2FA) Application

2FA application (Two-factor authentication) - It is a separate

application used to generate OTP by using the two options for both
Abyssinia Online and Mobile Banking. It is an alternative way of
getting OTP and recommended for customer who uses our service
from abroad. These are;
a) Offline OTP and

b) Push notification

We can get the application from Google store and BOA Internal
Portal. After downloading and installing the application the next step
is getting activation code from the branch on the T-24 side. The
customer can get the activation code after creating Mobile or
Abyssinia Online user. The code is sent by default via SMS but it will
expire after 24 hours but the branch can resend the activation code
again on the T24 side.

Login Method:

In general we have three types of login methods:

 SMS

After you click the SMS option to login to your Mobile banking or
Abyssinia Online access you will receive OTP via SMS. Besides, you
can also get the OTP via telegram and email by this option.

 Push Notification

To use this option, you must install a separate 2FA application. After
selecting the option, connect to the 2FA application and click Accept
Notification, after which you will be able to log in without entering an
OTP. Please keep in mind that you must have an internet access
while using this option.

 Offline OTP

The process for using this option is the same as for using push
notifications; the difference is that it generates an OTP by using this
option on the 2FA app and you will enter the OTP on your Mobile or
Abyssinia Online service.

Payment Gateways of Bank of Abyssinia

Responsibility of the Branch
  Select potential customers who can use both Mobile Banking
and Abyssinia Online service;
 Create Awareness for customers on how to use and product
features;
 Branches should focus on making transactions on digital
products;
 Focus on activation and transaction than recruitment;
 Meet annual targets for all digital products;
 Collect continuous feedback on digital products and send it to
the digital banking sector.

Payment Gateways of Bank of Abyssinia

Payment Gateways

А payment gateway is the technology that captures and transfers

payment data from the customer to the acquiring bank and then
transfers the payment acceptance or decline back to the customer. A
payment gateway validates the customer’s card details securely,
ensures the funds are available, and eventually enables merchants
to get paid. It acts as an interface between a merchant’s website and
its acquirer. Payment getaway can be integrated with the application,
website, and invoice link.

Underpayment getaway, we have three products;

• E-commerce

• Cash go

• Mama pays

Parties Involved in Payment Gateway

Parties Involved in Payment Gateway

 The merchant: Offering a product or service to customers

(travel, retail, E-Commerce, hotel exporter donation, etc)
  The Cardholder: Called a customer, who wants to access the
products or services that the merchant is selling, and initiates
the transaction.
 The issuing bank: The issuing bank is the customer’s bank that
issues the cardholder’s credit or debit card on behalf of
the card schemes (Visa, Master card).
 The acquirer: The financial institution that maintains the
merchant’s bank account. The acquiring bank passes the
merchant's transactions to the issuing bank to receive
payment.

Our Partners

We are a partner with visa, they are a global payment technology

company that covers 60% of international cardholders around the
world, 60 billion transactions processed annually by visa.

Cyber sources are the worldwide payment leader. It has a Decision

Manager to simplify payment security.

Advantages of E-commerce
Advantages of E-commerce

Ecommerce service can bring us the following advantages to

customers, merchants and the bank.

For the customer:

 Expand their product users;

 Accepting multiple payments;
 Become more accessible for far people;
 Improved customer satisfaction;
 Reduce Cost: Decrease cash collection & deposit in your
account within 24 hours;
 Higher security: Cyber source, Fraud management, 3D security.

For BoA:

 Expand Customer Base;

  Cross sales products;
 A unique product for the market and provides us the first
mover advantage;
 Improved customer satisfaction;
 Mobilize foreign currency resources;
 Higher security;
 Management POS fraud;
 Decrease risk;
 Increased image of the bank in the public.

Identification of Target Customer:

 Consider merchant business sector; Online shopping, souvenir,

consultancy, hotel, exporter, donation, etc.
 Merchant products must be Legal;
 A merchant may have a Web site or not;
 Foreign transaction movement;
 Corporate customer of the bank;
 Use BOA POS and ATM Machine;

Identification of Target Customer

Documentation: Contract agreement, merchant on boarding

information and legal document.

Pricing: The merchant will be free from service charge for 1 year
from the signing of the contract and after that 2% per transaction.

Cash Go
Cash Go

Cash Go system is an international money transfer system, which

allows anyone to instantly send money to family, friends, and
employees from any part of the world to Ethiopia. It was locally
developed and owned by BoA. Remittance via Cash Go can be sent to
BOA Account and Cash pickup.

Benefits of Cash Go Service for the customer:

  Discount transaction fee;
 App-based sending money platform;
 Fast settlement;
 Multiple transfer options;
 Convenience;
 Enhanced security.

Benefits of Cash Go Service for the bank:

 More customer Base;

 More FCY and resources can be mobilized;
 Customer satisfaction

Mama Pays
Mama Pays

What is Mama Pays?

Mama Pays is the easiest way to receive money from your relatives
abroad. You can request payment in Birr and generate a payment
link, then share the paid link to relatives via email, What’s App, SMS,
Messenger, Telegram, or the platform of your choice. It’s as easy as
having your relative click on the link to pay your payment request
with a master card or visa card. We can use mama pays with a
smartphone application by downloading from the play store. If you
have a computer mama pays to have additional access, we can URL
link and pay your invoice or send money for your beloved one
(https://mamapays.info/how-it-works/).

Benefits of Mama Pays:

 Benefit to the end user:

1. Facilitates to handle payments from abroad, and
2. Helps to get remittance at the right, and required time
and makes customers’ life easy.
  Benefit to Merchant:

1. Improves customer service;

2. Increases customer satisfaction, and
3. Increase customer base.

 Benefit to BoA:

1. Helps to generate FCY;

2. Increases the number of transactions conducted by digital
products;
3. Makes its customer’s life easy and satisfies their
demands;
4. Meets its digitalization strategy.

Scope of Operation for Remittance

 Invoice requests will work for 24 hours;

 Beneficiary account;
 The maximum transaction amount is $500;
 Maximum of 5 invoice per day for a single payer;
 For every bill a flat service charge of only $1 will be charged
from the settler;
 The generated bill information shall be sent to the requester
instantly;
 Bill settlement notification shall be sent to the, the beneficiary
and the settler;
 Bill settlement notification shall be sent to the merchant, the
beneficiary and the s