Wegagen Bank is pushing ahead with a digital transformation plan, embedded within its five-year corporate strategy aligned with the broader national digital agenda. Focusing on expanding digital services such as mobile banking and AI-driven lending products, the Bank has launched innovative platforms like Efoyta, a collateral-free digital loan specifically for women-led small businesses overlooked by traditional finance. 

Using data analytics to spot trends, including salaried customers’ end-of-month liquidity crunches, it introduced the “Wase Prime” payday loan, which has dramatically shortened loan processing from months to mere minutes.

 The digital expansion brings security imperatives as nearly a tenth of the Bank’sIT budget now fortifies cybersecurity, including a real-time fraud management system and compliance with the global PCI DSS standard. To curb expenses, such as personnel and administration which currently account for 65pc, Wegagen Bank prioritised automation, delivering savings of around 60 million Birr annually, and aims to cut its cost-to-income ratio to below 55pc by 2026.

The Bank is also increasingly reliant on digital agent networks equipped with POS devices and mobile wallets, which last year accounted for a quarter of all new rural customer acquisitions. Its CEO, Aklilu Wubet (PhD) foresees that Wegagen Bank will increase digital channel transactions from 35pc to 50pc by 2026, demonstrating his commitment to reshape traditional banking in the fast-evolving financial sector.

Aklilu (PhD) took the helm of Wegagen Bank in July 22, 2021, stepping out of an interim role to confront an 82pc plunge in profits and restore shareholders’ confidence. Confirmed by the National Bank of Ethiopia (NBE) on September 21, 2021, at age 48, he inherited one of the country’s first-generation private lenders at a precarious moment. 

An Addis Ababa University alumnus, Aklilu holds BA in Economics, Master’s in Public Administration and PhD in Public Management and Policy Papers.

His career began at the Commercial Bank of Ethiopia (CBE), where he spent seven years as a junior banker before managing a Wegagen branch in 2005. He then spent roughly a decade as Vice President of Corporate Services at the Bank of Abyssinia (BoA), overseeing IT, E-banking and credit, followed by leadership stints at Nile Insurance and Lion International Bank. He has also lectured in economics and accounting at AAU, Royal University College, and Unity University.

Returning to Wegagen Bank in March 2021 as Vice President of Corporate Services, he became acting president later that year. Under his leadership, Wegagen Bank’s paid-up capital surpassed 7 billion Br by mid-2025, comfortably exceeding the National Bank’s five billion Birr minimum requirement due in 2026. 

In March 2025, Wegagen Bank launched Wegagen Capital Investment Bank (WCIB), the first private investment bank licensed by Ethiopia’s Capital Market Authority, with 385 million Birr in paid-up capital. Two months earlier, the Bank became the inaugural listing on the Ethiopian Securities Exchange (ESX).

Aklilu (PhD) also championed prudent loan-recovery measures to counter rising impairment charges after branch closures in conflict-affected regions. He advocates balanced openness to foreign competition, favouring joint ventures that transfer technology and skills, while safeguarding domestic banks. 

A father of three and respected for his strategic vision and integrity, he spearheaded a digital transformation strategy emphasising mobile and card banking, which he calls “the principal growth engine to deepen savings culture and reduce cash outside the banking system.

Fortune Finance (FF). What is the structure of your digital transformation strategic plan? How do you ensure close collaboration between business units, IT, and risk functions to accelerate digital initiatives and overcome legacy-system constraints?

Aklilu Wubet (PhD): Wegagen Bank’s digital transformation strategy is nested under its corporate five-year strategic plan (2021/22– 2025/26) and fully aligned with Ethiopia’s National Digital Transformation Strategy. The strategy follows a Balanced Scorecard (BSC) framework with key pillars such as Digital Excellence, Customer-Focused Operational Excellence, and Business Growth through Digital Channels. 

The Digital Banking Cluster is organised around core verticals like mobile banking, internet banking, digital credit, agent banking, card banking, and digital ecosystem development like E-School and E-Health. 

To overcome legacy system constraints and ensure cross-functional collaboration, the bank utilises the Oracle FlexCube Core Banking System, supported by a state-of-the-art data centre. Furthermore, governance is handled via a Digital Transformation Steering Committee with executive oversight, ensuring alignment among business, IT, and risk functions. In addition, dedicated project teams with clearly defined roles are in place to implement each initiative with joint input from relevant units, and middleware integration and process automation are actively prioritised to bridge system gaps.

Q: How are you leveraging big-data platforms or customer-data lakes to generate insights on product usage, churn risk, and personalised offerings? Can you share one example where such insights directly informed a digital product tweak or targeted campaign?

Wegagen Bank is expanding its data analytics capabilities through real-time insights drawn from customer interactions across mobile banking, internet banking, agent networks, and card banking platforms. These data sources feed into our analytics engine, which supports smarter segmentation and product design across our digital ecosystem. 

Our digital lending brand, Efoyta, stands as a flagship product shaped heavily by data insights and behavioral intelligence. Our analytics initiatives are designed to gain deep insights into customer behavior by tracking transactional patterns and segmenting users based on their spending, saving, and borrowing habits. Moreover, account inactivity is proactively monitored to prevent churn through timely nudges and targeted re-engagement strategies. Additionally, tailored product offerings are made using historical usage data, demographic profiles, and digital engagement preferences. These efforts also enable us to predict spikes in demand for services such as bill payments and remittances, allowing for optimal allocation of system resources and agent support.

Efoyta Edget – Women-led MSME Loan (Working Capital): Insights revealed that a high share of active digital customers was women-led micro and small businesses. These customers maintained steady transaction patterns but were underserved by conventional credit due to the lack of collateral. In response, Wegagen launched a digital, collateral-free working capital loan via Efoyta designed to meet their short-term business needs. This intervention helped unlock credit for financially active but previously excluded segments.

Wase Prime – Payday Loan Based on Salary Cycle Analysis: Behavioural analysis showed a notable drop in account transaction activity during the last week of each month among salaried customers, indicating liquidity pressure before payday. This insight led to the creation of “Wase Prime,” our digital payday loan product that provides quick cash flow support until salary deposit. The product is seamlessly integrated within our app and supports auto-repayment on salary day, improving customer convenience and stickiness.

Q: What has been the year-on-year (YoY) growth in mobile transactions value and volume? How do you evaluate the return on investment (RoI) of your mobile banking app enhancements, and what key features have driven the largest increases in transaction uptake?

Wegagen Bank has recorded strong year-on-year growth in both the volume and value of mobile transactions, validating the Bank’s recent investments in its mobile platform. 

The RoI for mobile banking is evaluated through key performance indicators such as cost per transaction compared to traditional channels, user activation and retention rates, incremental deposit mobilization, cross-sell ratios, and the reduction of branch traffic and operational expenses. 

Adoption is driven by user-centric features including seamless onboarding with biometric login, real-time balance updates and notifications, enhanced utility bill payment and mobile top-up functionalities, as well as integration with agent banking to facilitate cash-in and cash-out services.

Q: As you scale digital services, what proportion of your annual IT budget is now allocated to cybersecurity? Can you cite specific measures (e.g., multi-factor authentication, real-time fraud monitoring) you have deployed to maintain customer trust?

As the financial sector undergoes rapid digital transformation, cybersecurity is no longer a support function but rather a pillar of business continuity, customer trust, and regulatory compliance. At Wegagen Bank, this reality has shaped a focused and strategic approach to securing our digital infrastructure. 

In recent years, our investment in cybersecurity has become increasingly deliberate. On average, 9.1pc of our annual Information Systems (IT) budget over the past three years has been allocated exclusively to cybersecurity. This figure underscores our commitment to proactively protect customer data, secure digital transactions, and uphold the integrity of our financial services in an evolving threat landscape. Importantly, this allocation excludes spending on digital banking technologies, further emphasising the distinct and critical role cybersecurity plays within our overall IT ecosystem.

In alignment with both our institutional strategy and regulatory frameworks, Wegagen Bank has implemented a comprehensive security architecture comprising cutting-edge tools and systems. A real-time Enterprise Fraud Management System has been deployed to proactively detect and block suspicious activities before they can impact customers. This is supported by a fully operational Security Operation Centre (SOC), which functions as a centralised hub for 24/7 threat monitoring, incident response, and cyber intelligence gathering. 

To ensure that our network of devices remains secure across all endpoints, we have integrated an advanced Endpoint Detection & Response (EDR) system. This allows the Bank to swiftly identify and contain sophisticated threats targeting user devices. Complementing this is a robust Data Security Tool that ensures data remains protected through encryption and strict access controls. 

Our Application Security Monitoring System provides realtime oversight of our critical banking applications, helping to identify vulnerabilities before they can be exploited. Alongside this, comprehensive infrastructure security measures such as network segmentation, next-generation firewalls, and intrusion prevention systems have been put in place to strengthen the core of our digital environment. 

These strategic investments culminated in a significant milestone as Wegagen Bank achieved Payment Card Industry Data Security Standard (PCI DSS) compliance as of May 14, 2025. This globally recognised certification affirms the Bank’s adherence to rigorous data protection standards and reinforces its dedication to safeguard cardholder information.

Looking ahead, which specific digital banking products or channels do you see as having the greatest potential to further enhance these profitability metrics? Additionally, what timelines have you envisioned for these initiatives to start contributing meaningfully to both top-line and bottom-line growth?

To improve key profitability indicators such as Return on Assets (RoA) and net profit margin, Wegagen Bank is prioritising specific digital channels and products with strong potential to drive both top-line and bottom-line growth. 

Loans to over 188,000 customers have been disbursed via Efoyta digital lending platform in particular which targets the underserved “missing middle” segment through fully automated underwriting. Efoyta is expected to meaningfully contribute to revenue growth in 2025/26 financial year through increased interest income and the cross-selling of savings products.

By shifting more transactions to mobile and agent channels, the Bank aims to reduce dependency on physical branches and cut operational overhead. These efficiency gains are projected to begin improving margins and lowering the cost-to-income ratio starting in FY 2024/25. 

Upgrades targeting high-value clients such as improved user experiences, additional features, and convenience are expected to boost fee-based income and customer retention, with measurable impact anticipated by the first quarter of 2026. 

Collectively, these digital initiatives form a core part of the Bank’s strategy to enhance profitability and operational scalability in the coming years.

Q: To what extent has Wegagen Bank rolled out end-to-end digital loan origination platforms (covering application, underwriting, disbursement)? What share of new loans originate via digital channels, and how has this impacted loan processing times and customer satisfaction?

Wegagen Bank has made significant strides in digital lending through the rollout of Efoyta, a fully digital, end-to-end loan origination platform. The platform enables customers to apply for loans via mobile app, with automated underwriting powered by an AI scoring engine that assesses repayment behaviour, transaction history, and mobile usage. Upon approval, disbursement is made instantly and directly to the customer’s wallet or bank account. 

As of June 2025, more than 180,000 loan accounts have been originated through digital channels, primarily via Efoyta. This is a remarkable achievement compared to the Bank’s conventional loan base of around 12,000. In under a year, the platform has disbursed over 3.2 billion Br to more than 187,000 borrowers. 

The impact has been profound. Loan processing times have decreased dramatically from one to three months under the manual system to under five minutes digitally. Customer satisfaction with Efoyta remains consistently high, with ratings above 85pc, largely attributed to the platform’s speed, transparency, and user-friendly interface

Q: What recent technology investments have you made to enhance efficiency? What measurable savings have they delivered so far?

Wegagen Bank has strategically invested in technologies aimed at streamlining operations to reduce the cost-to-income ratio. Key initiatives include the automation of critical back-office functions such as reconciliation, loan origination, and customer onboarding. In addition, services have been actively migrated to digital platforms, significantly reducing branch traffic and minimising reliance on manual processing. These efforts have yielded measurable results such as loan turnaround time has been reduced by more than 50pc, and we project that the annual operational cost savings of approximately 60 million Br as a direct outcome of our automation and digital migration initiatives.

Q: How are you integrating advanced data analytics or machinelearning models into your credit- scoring and early-warning systems to reduce non-performing loans?

To enhance asset quality and reduce non-performing loans (NPLs), Wegagen Bank is leveraging advanced data analytics and AI-driven tools in its credit risk management processes. Our digital scoring engine for Efoyta, a digital lending platform, is AI-assisted and continuously evolves by analyzing repayment patterns, demographic profiles, and transaction behaviors. 

Currently, the model operates via a one-way API with our Core Banking System (CBS). However, it is being upgraded to a bi-directional API, enabling real-time feedback loops to flag early warning signs such as declining account balances, missed deposits, or unusual usage patterns. 

Looking ahead, by July 2026, enhancement of the scoring engine with AI-based behavioral analytics, integration of mobile usage and geolocation data, and historical repayment records drawn from both internal systems and third-party sources is underway. This holistic approach is expected to reduce default rates on new digital loans by at least 30pc and significantly improve collection efficiency through predictive delinquency alerts.

Q: What strategic measures are you taking to recalibrate investments between physical branches and digital channels to optimize deposit mobilization? Furthermore, how are you tracking and measuring changes in deposit origination across channels over the past 12 months?

Wegagen Bank is strategically rebalancing its investment mix between physical branches and digital channels to drive greater efficiency and deposit growth. We are transitioning from a branch-heavy model to a hybrid approach, where mobile banking, agent banking, smart branches (Phygital), and Internet banking serve as the primary customer touch points. Our branch expansion plans have been revised to emphasise digital channel adoption, particularly in urban and semi-urban markets. In rural areas, we are leveraging agent banking to extend reach while keeping fixed costs in check. Additionally, we are moving towards smart branches. 

To measure impact, we have introduced robust tracking mechanisms that monitor deposit origination by channel which identifies whether a customer’s first deposit came through a branch, agent, or mobile platform. Monthly reports now detail channel-wise contributions to overall deposit growth. Notably, our latest dashboard data indicates a 12pc year-on-year increase in deposits through mobile and agent banking, alongside a growing share of wallet from digitally engaged customers.

Q: Agent networks are vital for rural outreach. How have you equipped your agent network with digital tools (POS devices, mobile wallets), and what growth in rural customer acquisition and deposit mobilisation can you attribute to these digital agent initiatives?

Wegagen Bank has prioritised the digital enablement of its agent network as a cornerstone of its rural outreach strategy. All agents are equipped with POS devices fully integrated with the Bank’s payment switch system, enabling real-time transactions. Mobile wallet integration allows agents to support key services such as digital onboarding, cash-in and cash-out operations, utility bill payments, and credit repayments. 

To ensure consistent service quality, agents undergo digital training through mobile-based learning modules, supplemented by regular refresher sessions.

These investments have delivered tangible results. Over the past 12 months, more than 25pc of new rural customers have been onboarded through the agent network. Agent banking has proven to be an effective last-mile solution for digital loan repayment, significantly improving collection rates in previously underserved areas.

Q: Can you provide data on the percentage of your customer base actively using mobile and internet banking? How do these adoption rates vary across customer segments? How is that informing your digital product roadmap?

Mobile and Internet banking adoption at Wegagen Bank continues to grow steadily, with usage patterns varying across customer segments. Retail clients in urban centres demonstrate strong uptake of mobile banking, particularly through smartphone apps. Small- and medium-sized enterprises (SMEs) and diaspora customers predominantly rely on Internet banking to manage invoice payments and cross-border fund transfers. Meanwhile, rural customers are increasingly turning to USSDbased mobile banking and agent-assisted platforms due to their accessibility and ease of use. 

These insights directly inform our digital product roadmap. Wegagen Bank is developing tiered mobile banking interfaces that offer basic functionality for USSD users and enhanced features for smartphone clients. We are on the verge of introducing QR-based payment options, microloan top-ups, and gamified savings tools to better engage mobile users. On the corporate side, our Internet banking platform is being upgraded to support bulk payments, payroll processing, and integrated foreign exchange (FX) modules to ensure that the Bank continues to meet the evolving needs of our diverse customer base.

Q: Have you entered into any partnerships or integrations with fintechs via open APIs? If so, which collaborations have yielded the most important increases in customer acquisition, cross-sell rates, or digital transaction volumes?

Wegagen Bank has actively pursued strategic partnerships with fintech firms through open API integrations to accelerate digital innovation and expand financial inclusion. A notable collaboration is with Kifiya Financial Technologies Plc, leading to the co-development of Efoyta, our flagship digital lending platform. 

This partnership has enabled end-to-end digital onboarding through seamless eKYC, AI-assisted credit scoring, and the use of alternative data for underwriting. Consequently, the results have been substantial. Through the Efoyta platform, more than 3.2 billion Br has been disbursed digitally, driving significant customer acquisition, particularly among underserved and underbanked segments.

Q: Which digital marketing channels (social media, search, in-app notifications) have you found most effective for promoting new banking products? Can you quantify their contribution to new-customer conversion rates and product take-up in the last year?

Social media has been our most impactful digital marketing channel for promoting new banking products, particularly on platforms such as Facebook, Telegram, and Instagram, where we engage a large and growing base of digitally active customers. These campaigns have been instrumental in driving awareness and adoption, especially for products like Efoyta digital loans and mobile banking services. We have also deployed targeted in-app promotions through our mobile banking app and used ATM screens to advertise services and cross-sell offerings.

Q: Beyond user adoption metrics, how do you quantitatively tie digital banking initiatives to core financial KPIs, such as improvements in cost-to-income ratio, incremental fee income, or reduction in branch operating costs? What targets have you set for these metrics over the next two years?

Wegagen Bank has established clear and quantitative links between its digital banking initiatives and core financial performance indicators. Digital channels have significantly lowered processing costs by as much as 60pc per transaction compared to branch-based operations. The Bank aims to reduce its cost-to-income ratio (CIR) from the current 65pc to below 55pc by the end of the 2025/26 fiscal year, driven by ongoing automation and customer migration to digital platforms. 

The expansion of mobile and card-based transactions has contributed to a 20pc year-on-year growth in non-interest income. Looking ahead, the Bank has set a target of achieving 15pc annual growth in fee-based revenue from digital channels, particularly from loan processing fees, card charges, and subscription services.

The shift of routine transactions to mobile and agent banking has reduced in-branch foot traffic, allowing for staff reallocation and lower energy-related and operational expenses. As a result, the Bank projects annual cost savings of 40 million Br to 50 million Br by the 2026 financial year. Currently, approximately 35pc of all transactions are conducted through digital channels. The Bank is targeting an increase this figure to 50pc by 2026, further reducing reliance on physical branches.