Dashen Bank’s Digital Lending via Telebirr Gains Momentum, Reaches 17 Billion Birr

Dashen Bank’s push into digital lending is gaining traction, with the bank disbursing 3 billion birr in mobile-based loans through the Telebirr platform over the past six months, signalling accelerating adoption of app-based credit in Ethiopia’s retail financial market.

The latest figures, covering July to December 2025, lift the cumulative value of loans issued through the Telebirr partnership to nearly 17 billion birr, up from 14 billion birr reported at the end of June 2025. The growth highlights rising demand for short-term, low-value credit delivered through mobile money channels.

Dashen Bank launched the digital lending service in August 2022 in partnership with Ethio Telecom, following regulatory approval from the National Bank of Ethiopia. The initiative was designed to extend formal financial services to individuals, agents, and micro-merchants who typically face barriers to accessing traditional bank credit.

Through Telebirr, users can access a range of digital financial products tailored to different income profiles and cash-flow needs. Telebirr Mela offers microloans with flexible repayment schedules ranging from daily to 50 days. Telebirr Medaresha provides salary-backed loans for formally employed users, while Telebirr Endekise functions as an overdraft facility, allowing transactions to proceed even when balances are insufficient. The platform also includes Telebirr Sanduq, which enables micro-savings with both interest-bearing and non-interest-bearing options.

Usage data from the fiscal year ended June 30, 2025, shows that more than 2.3 million customers accessed Dashen Bank’s Telebirr-linked services, conducting over 8.4 million transactions valued at nearly 14 billion birr. The additional lending recorded in the second half of the year points to growing reliance on mobile credit, particularly among small traders and low-income users managing short-term liquidity needs.

Unlike conventional bank loans, the Telebirr credit products do not require physical collateral. Loan eligibility and limits are determined using an AI-enabled credit scoring system that analyses telecom usage patterns and transaction histories. The services are available through both the Telebirr mobile app and USSD channels, widening access for users without smartphones.

As Ethiopia’s financial sector continues to digitalise, Dashen Bank’s expanding Telebirr loan portfolio underscores the increasing role of mobile money platforms in bridging credit gaps and reshaping retail lending.

Source EBR