The Commercial Bank of Ethiopia (CBE), has published the names and pictures of its customers who failed to return the money that appeared in their accounts during its recent technical glitch.
Recall that sometime last month, multiple reports claimed that CBE’s customers discovered that they could take out more cash than they had in their accounts. Hence, they took advantage of the technical glitch to withdraw over $40 million.
However, after several failed attempts to get some of the customers that withdraw the money they hadn’t saved in the bank, CBE resorted to shaming them by publishing their names.
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Even though CBE had recovered $14 million out of the money lost during the glitch, the financial institution is determined to retrieve all.
Speaking on the glitch, President, CBE, Abe Sano revealed that the financial institution was already in the process of reporting customers to the police.
“There is no way that they can escape because they are digital [transactions] and they are our customers. We know them. They are traceable and they are legally accountable for what they did,” he said.
CBE faces a tracking hurdle following the glitch
Fintech Telex understands that the money withdrawn in the course of the technical glitch could have been taken from the customers’ accounts, but CBE faced difficulty in doing so.
A CBE employee highlighted the challenges in tracking money transfers to different banks compared to transactions within the CBE system. According to the employee, the process of finding funds sent to external banks poses greater difficulties than tracing funds transferred between accounts within the CBE network.
This insight sheds light on the intricacies and complexities involved in monitoring financial transactions, particularly across banking institutions. The statement implies that the CBE, like many other banks, faces hurdles when attempting to follow the trail of funds that leave their ecosystem.
The distinction drawn between internal and external transfers underscores the importance of robust monitoring and tracking mechanisms within the banking sector. It suggests that while transactions within the CBE’s own accounts might be more manageable to trace due to their internal protocols and systems, cross-bank transfers require additional efforts and resources.
This revelation also points to broader challenges in the financial industry, where ensuring transparency and accountability in cross-border transactions is a constant endeavor. It highlights the need for enhanced collaboration and technological solutions to streamline the process of tracking funds across diverse banking networks.
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Meanwhile, multiple reports claimed that at least 15,000 of the customers had willfully returned no less than $11 million they withdrew in the course of the glitch. Though Sano said,
The total amount remaining is not significant for the bank, but if this money is not fully recouped, it sends the wrong message.
About CBE
As seen on Wikipedia, CBE is Ethiopia’s largest commercial bank. Established in 1963, it boasts a rich history, dating back to the State Bank of Ethiopia founded in 1942.
CBE stands out for its sheer size. With over 1.1 trillion birr in assets (as of June 2021), it holds a dominant share of the country’s deposits (around 67%) and loans (roughly 53%). This translates to a vast network of over 1000 branches spread across Ethiopia, with a strong presence in Addis Ababa, the capital.
CBE played a pioneering role in introducing modern banking to Ethiopia. It was the first to offer ATM services and has continuously embraced digital solutions.
The bank employs over 35,000 Ethiopians and actively contributes to the nation’s economic development. With its extensive reach and commitment to digitalization, CBE is seen as a key player in Ethiopia’s financial future.
Written by Shobowale Racheal
