The President of the Commercial Bank of Ethiopia (CBE), Abe Sano, spoke to Addis Walta this week and revealed that serving a customer at a branch incurred a cost of 70-100 birr for the bank. He mentioned that for many years CBE had been offering various banking services free of charge to encourage Ethiopians to support the financial system. However, Mr. Abe acknowledged the need for a more cost-effective approach.
Mr. Abe Sano said that the Commercial Bank of Ethiopia (CBE) was committed to technological advancements. CBE allocates 3 billion birr annually for upgrades and 2 billion birr for acquiring IT infrastructure. The aim of this investment is to improve efficiency and reduce branch servicing costs.
When a customer uses the services at the branch of Commercial Bank of Ethiopia (CBE), it costs the bank 70 to 100 birr to serve them. However the bank still provides many free services to customers. If a customer spends more than 1000 birr at the branch, they are only charged a small fee of 5 to 10 birr.
It seems CBE wants to charge fees from customers for their services. If it happens it would be interesting to know how Commercial Bank of Ethiopia (CBE) plans to inform customers about potential fee changes and the response of customers.
Moreover, in the same interview, Mr. Abe Sano talked about the money miracle prayers. Pictures came out of a Protestant Church in Bishoftu Oromia this week. The pictures showed Protestant followers with their CBE bank account books in the church. They attended the church service with bank books hoping to have their money deposits multiplied through money miracles prayers recited by protestant clergymen. The CBE chief said that money deposits could be “blessed not multiplied by prayers”.
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Outrageous service but focused on customer fee.