EFG launches payment-on-installment solution
Our friends at EFG Hermes have vaulted into the fintech space with a consumer finance solution. The firm’s ValU brand will offer Egyptian consumers a payment-on-installment program via a mobile app. ValU, which will be debut in January, gives clients “access to tailored instalment programs to shop across a wide network of stores. The new offering’s unique selling proposition is enabling clients to access these programs using the fastest approval process in Egypt — without conventional paperwork — through a sophisticated risk assessment algorithm,” said Walid Hassouna, CEO of EFG Hermes Finance and group head of debt capital markets. EFG Hermes has allocated an initial EGP 250 mn in investments to its new venture, with more allocation to be deployed as ValU expands its client base and vendor network. “Our venture into the Fintech space falls in line with global financial industry trends that are increasingly focusing on utilizing the potential of a large consumer market — such as Egypt’s — and taking advantage of the growing number of smartphone users,” EFG Hermes CEO Karim Awad says.
ValU’s first order of business? An agreement with Uber to help provide drivers with EGP 100 mn in financing to buy new cars, according to statements by Hassouna picked up by Al Mal. The program, which kicks off next week, will provide drivers with the 20% down payment on the vehicle at a 5% interest rate. The program has the support of the Investment ministry and the Saudi Fund for Development, he added.