EFG Hermes: Achieving Digital Agility through API-led Integration

• Application Infrastructure & Middleware - Data Exchange & Integration
• Application Infrastructure & Middleware - Middleware, SDKs & Libraries

• Buildings
• Finance & Insurance

• Maintenance

• Inventory Management
• Leasing Finance Automation

• System Integration

EFG Hermes Holding, a universal bank based in Cairo, was facing several challenges as it sought to expand into the non-bank financial product market. The company was developing a new consumer financing platform that required greater digital agility. They needed to provide a connected customer experience, modernize their legacy integration, and minimize disruptive back-end changes. The company's novel BNPL platform, valU, had grown in popularity since its launch in 2017. However, as the suite of applications expanded, the IT systems became less agile due to rigid point-to-point connections. This lack of agility led to service interruptions when replacing applications and delays in updates to the valU mobile app. To ensure an exceptional customer experience, EFG Hermes Holding recognized the need for a more agile, secure, and easy-to-maintain services architecture.

EFG Hermes Holding is a universal bank based in Cairo and the leading investment bank franchise in Frontier Emerging Markets (FEM). The firm specializes in securities brokerage, asset management, investment banking, private equity, BNPL, leasing and factoring, microfinance, insurance, mortgage, and commercial banking. The company has over 6,000 employees in 13 countries across four continents and recorded revenues exceeding $388 million in 2021. EFG Hermes Holding has a history of innovation, having evolved from an Egyptian investment bank into a Universal Bank in Egypt with the leading investment bank franchise in FEM. Its novel BNPL platform, valU, is the first of its kind in the Middle East and North Africa region.

EFG Hermes Holding chose webMethods for its end-to-end suite of integration products. The webMethods Integration Platform provided a powerful solution to quickly connect all internal systems and applications. WebMethods' API Management enabled safe, secure, and thoroughly monitored data sharing with partners, facilitating faster product and service delivery. The company also appreciated Software AG's flexible sales model, strong network of Egyptian partners, and comprehensive view of how a transformed enterprise architecture could yield significant business benefits. In collaboration with Majara Solutions, a longtime Software AG partner in Cairo, developers overhauled the integration of critical front- and back-end channels. This included the valU mobile app and customer relationship and risk management applications. The software now processes over 1.5 million daily transactions, reducing back-end changes by 40%, cutting product time to market by nearly 60%, and enabling application changes without service interruption.

• The implementation of webMethods has led to significant operational improvements for EFG Hermes Holding. The shift from point-to-point integration to webMethods API Management and integration has not only reduced the frequency of back-end changes but also led to a significant reduction in the time to bring new products to market. The ability to replace applications without interrupting services has improved the overall customer experience. The integration with external partners is now easier and faster than ever, thanks to webMethods' API Management. The success of the webMethods deployment on valU has led to discussions about extending it to other business units and subsidiaries, including new fintech initiatives within its ever-growing nonbusiness financial inclusion platform. This digital agility is seen as an essential component for EFG Hermes Holding to thrive in an ever-changing industry.

• 1.5 million daily transactions processed
• Reduced backend changes by 40%
• Cut product time to market by nearly 60%