How Ethiopia’s Banking Goliath Slapped 38 Million Customers in the Face and Reminded Us Why It’s Stuck in the Past.
If you woke up this week and tried to send a small amount of money to a friend or family member, you might have noticed a little surprise from the Commercial Bank of Ethiopia (CBE). That surprise was a hefty 50 Birr fee, turning your friendly 500 Birr transfer into a transaction where the bank skimmed a cool 10% off the top. Welcome to the new CBE, where your small change is their big profit.
Social media, naturally, is on fire. Screenshots are flying around with captions full of rage as customers feel the “bill shock” of these unannounced, punitive charges. According to reports from platforms like Addis Insight, CBE rolled out these new “service adjustments” without so much as a detailed warning, leaving millions of its users to discover the exorbitant fees in real-time. It’s a classic case of corporate arrogance, a bold move that only a monopoly with an unshakeable ego could pull off.
But let’s be honest, is anyone truly surprised? This latest cash grab is just a symptom of a much deeper disease. The only reason CBE still wears the crown as Ethiopia’s “best bank” is because it’s being judged by the prehistoric standards of a decade ago.
For years, Ethiopia’s banking system was a punchline. In that era, the definition of a “good bank” was simply the one with the most physical locations. CBE perfected this game. Their strategy was never innovation or customer service; it was to slap a logo on every half-finished building from Addis Ababa to Hargeisa. They built an empire of brick and mortar, and for a time, it worked. More branches meant more prestige, more customers, and a title they’ve clung to with a death grip.
But JP, as you know better than anyone, in the world of modern finance and technology, the number of branches you have is as relevant as the number of fax machines in your office. We live in an age where multi-billion dollar banks serve global customers from a single headquarters. Yet, CBE continues to operate as if the internet was never invented.
Their obsession with physical presence has come at the cost of actual service. Walk into any CBE branch today and you’ll likely be met with a soul-crushing experience. The scene is all too familiar: impossibly long queues, tellers who look at you with utter disdain, and the three magic words that can ruin your entire day: “The system is down.”
You stand there, needing to withdraw your own hard-earned money, and are met with a dismissive wave from an uncivilized and uncouth employee who clearly wants you to just disappear. You’re forced to practically beg for access to your own funds, all while that very same money sits in their coffers, earning them interest and padding their bottom line. It’s a masterclass in contempt for the very people who keep them in business.
And their digital offerings? A joke. The mobile app feels like it was designed by someone who just discovered the internet, and the dreaded “system down” message is just as common on your phone screen as it is in their branches.
This new fee structure isn’t a mistake; it’s a calculated decision. It’s the act of a lumbering giant that knows it has a captive audience and feels entitled to fleece them. They are squeezing the little guy—the student getting money from home, the gig worker getting paid for a small job—because they can.
While private banks and nimble fintech startups are wooing customers with lower fees, better apps, and actual customer service, CBE is busy counting its branches. But the tide is turning. An ego can only shield you from reality for so long. Eventually, even the biggest Goliath has to face the fact that its customers are tired of being treated like a nuisance. This fee fiasco might just be the stone that finally gets the giant’s attention.
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