Oromia Bank Joins Digital Lending Race with Launch of Miliki App













Oromia Bank has entered Ethiopia’s rapidly evolving digital lending space with the launch of Miliki, a new mobile application that offers collateral-free loans through an AI-driven credit assessment system. Developed in partnership with local fintech firm Quantum Technology, the app is part of the bank’s broader strategy to expand financial access and align with national digital transformation goals under Digital Ethiopia 2025.

With Miliki, Oromia Bank joins a growing list of financial institutions and tech companies racing to offer mobile-based microcredit solutions aimed at underserved populations. The platform enables eligible users to apply for loans up to ETB 300,000 without requiring traditional asset-based guarantees.

According to Oromia Bank CEO Teferi Mekonnen, the product is designed to address long-standing barriers to credit, particularly for groups often excluded from the formal financial sector, such as women, youth, and informal workers.

“Miliki leverages technology to extend credit access to those who have the capacity to repay but lack conventional collateral. It’s about inclusion, efficiency, and accessibility,” Mekonnen said during the launch event.

The app uses an AI-powered algorithm that evaluates borrower behavior, transaction history, and other alternative data sources to determine loan eligibility. Since its pilot and soft launch period began three months ago, over 7,000 users have successfully received loans via the platform—a figure the bank considers a strong indicator of unmet demand.

A Competitive Landscape of Digital Credit Solutions

Miliki’s debut comes amid increasing competition in Ethiopia’s mobile lending market, as banks and fintechs seek to capitalize on the country’s young population, expanding smartphone usage, and persistent credit gap.

Commercial Bank of Ethiopia (CBE) has introduced limited-scope loans through its CBE Birr mobile wallet, mostly catering to salaried individuals with a stable transaction record.

Dashen Bank, via its digital payment platform Amole (in collaboration with Moneta Technologies), offers microloans primarily to merchants, using transaction data to assess creditworthiness.

Awash Bank is testing digital loan offerings for SMEs, although these products still involve more conventional screening processes and collateral for larger amounts.

While the regulatory environment for digital credit in Ethiopia is still maturing, the momentum suggests a shift toward more consumer-centric and mobile-first financial products. Analysts say the success of these tools will depend not only on their technological strength but also on repayment performance, financial literacy, and ongoing regulatory support.

Outlook

By rolling out Miliki, Oromia Bank signals its intent to be a key player in the country’s digital financial future. As Ethiopia’s credit ecosystem diversifies, the competition to build user trust and scale responsibly will intensify. Whether Miliki can maintain early traction and expand sustainably remains to be seen, but its launch marks a clear step in the growing race to redefine access to credit in Ethiopia.