Global affinity finance club autumn 2011
Upcoming SlideShare
Loading in...5
×

Like this? Share it with your network

Share
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
1,011
On Slideshare
1,011
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
5
Comments
0
Likes
1

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. AFFINITY INSURANCE AUTUMN 2011 BANCASSURANCE Global Affinity AFFINITY BANKING Finance ClubFinaccord’s newsletter about affinity financial services worldwideWelcome back to the Club! For this quarter, to make the newsletter more navigable, we have changed the organisation slightly. In particular, within the familiar af- finity insurance, bancassurance and affinity banking categories, articles are now ordered alphabetically according to the product focus of the partnership mentioned. For example, within the section about affinity insurance, separate sub-sections are included for each of accident / health insurance, assistance, business insurance, life insurance / retire- ment savings, motor insurance, niche insurance, product insurance / warranties and travel insurance. Thereafter, partnerships with no specific product focus are included under a final ‘general’ sub-heading and a similar structure applies to each of the bancassurance and affinity banking sections. Combined with the usual listing of organisations mentioned in the newsletter on the penultimate page, this should make it easier to find the news that is of most relevance to you. Otherwise, the stand-out deals in the world of affinity finance from the last quarter, in our opinion, are those of American Express with Bank of China (credit cards in China), Assurant Solutions with Sprint (mobile gadget insurance in the US), Cigna with TTK Group (health insurance in India), Crédit Mutuel with Desjardins (a general banking alliance), Manulife with Bank of China (various forms of insurance in China), MasterCard with Vivo (mobile payments in Brazil), and VZG with ING Bank (health insurance in the Netherlands). With best regards, Alan Leach Director aleach@finaccord.com For our published reports, news and more please visit www.finaccord.com
  • 2. Global Affinity Finance ClubTable of contentsAffinity Insurance News 4 Product insurance / warranties 6 Assistance 8Accident / health insurance 4 Assurant Solutions renews product in- Solid Försäkringar links with Ikano surance partnership with RadioShack… Bank for road assistance 8AXA insures the professional golfers of 6the Spanish PGA 4 ... establishes new relationship with Life insurance / retirement savings 8Cigna signs agreement for health insur- Sprint.... 6 Ageas and Sabanci jointly increase theirance joint venture in India... 4 ... and wins furniture insurance mandate stake in Aksigorta 8…and begins distributing Sun Life’s in the UK 6 Allianz signs agreement with Sberbankstop-loss cover via TPA network in the Bouygues Telecom launches mobile for the acquisition of Allianz Life 8US 4 protection scheme with Asurion 6 Aviva and DBS launch first Renminbi- Domestic & General expands productAssistance 4 denominated insurance plan 9 protection deal with Indesit... 6 San Miniato Previdenza to be merged ... and launches computing assistanceCigna acquires UK insurance solutions into Cattolica Assicurazioni 9 service with ProMarkt in Germany 7provider FirstAssist 4 HSBC receives permission to expand Travel insurance 7 bancassurance operations in China 9Business insurance 4 Legal & General extends bancassurance Allianz Global Assistance and ISTA relationship with Barclays 9Allianz France signs business insurance team up for space tourism 7 Liberty Group partners with Standardpartnership with France Angels 4 Hiscox links with Millstream Underwrit- Bank for direct life insurance 9AXA collaborates with business associa- ing for travel insurance 7 Prudential ties with Citibank for Viet-tions in Germany 4 Solid Försäkring provides travel insur- namese bancassurance 9Life insurance / retirement savings 5 ance for Hyllinge Bus customers 7 Niche insurance 9Aviva creates joint venture Spanish life General 7 SPB enhances retailer bank’s Visa cardsinsurance company 5 AXA Spain partners with the Chinese with new features 9R+V and German travel trade associa- community in Spain 7tion forge agreement for retirement Product insurance / warranties 10 Chartis launches new affinity division inproducts 5 France 8 Barclaycard launches new suite of prod-Motor insurance 5 Legal & General tees up legal services uct insurance policies 10 for business protection clients 8 Fiditalia ties with Société Générale In-Santander unveils online brokerage fa- ————————————— surance for used car extended warran-cility for motor insurance in Spain 5 ties 10Equity Insurance Partnerships retainsNissan mandate 5 Bancassurance News 8 General 10Niche insurance 6 Accident / health insurance 8 Manulife signs a new framework agree- ment with Bank of China… 10Solid commences partnership with Ste- ING announces co-operation with …and also partners with a new bancas-ve Perryman and Watch It Live 6 VGZ for health insurance 8 surance distributor in Indonesia 10EZShield partners with The WarrantyGroup for identity theft cover 6 ————————————— www.finaccord.com 2
  • 3. Global Affinity Finance ClubAffinity Banking News 11 Inter-bank card distribution 13 Retailer banking 17Affinity bank accounts 11 American Express establishes card issu- BMO Bank of Montreal and Canadian ing partnership with Bank of China... 13 retailer unveil two co-branded accountsBritannia extends affinity relationship ... and with KB Kookmin Card in South 17with Stoke City F.C. 11 Korea 13 Rabobank’s US subsidiary expands cash Diners Club International partners with access by partnering with Walgreens 17Automotive finance 11 HDFC Bank in India 14 Japan’s Mizuho Financial Group part- Retailer cards 17Ally Financial and MG Motor form ners with China UnionPay 14partnership in the UK 11 American Express forges link with Japa-AXA and Banco Pastor support the Mobile payments 14 nese retailer card issuer… 17CESPA LUBRICANTES’ network of …and launches prepaid card for USgarages 11 Barclaycard and Orange launch new retail chain 17Aston Martin offers US customers retail mobile payments handset in the UK 14 Caisse d’Epargne’s launches multi-‘subvention financing’ from Chase 11 BNP Paribas Mobile is launched in con- retailer prepaid gift card 17GMAC-SAIC Named Preferred Fi- junction with Orange 14 Citigroup unveils new initiatives in thenance Provider for new Baojun brand in Crédit Agricole commences mobile Czech Republic and Philippines… 17China 11 contactless payment pilot in France 14 … and renews major retailer card rela-Santander Consumer Bank re-enforces HDFC Bank and Vodafone launch mo- tionships in the US 18German car finance partnerships 11 bile banking product for rural commu- Desjardins takes control of Staples Can-Santander Consumer Finance drives nities 15 ada’s credit card portfolio 18into Chinese joint venture 12 MasterCard links with Etisalat to launch Western Union extends prepaid plat- of new mobile payments service 15 form to the UK 18Business banking 12 MasterCard facilitates introduction of prepaid contactless wristwatch 15 Retailer finance 18Banco Popolare backs finance scheme MasterCard and Telefónica team up forfor women in agri-business sector 12 La Redoute and Crédit Agricole Con- Brazilian mobile finance joint ventureBanques Populaires sign agreement to sumer Finance replace cards with online 15facilitate finance of artisans 12 finance 18 Money transfers 16 GE Capital creates two new retailerCo-branded cards 12 finance partnerships in the US... 19 MasterCard and Western Union estab- ... and renews three others 19ANZ and SRCB combine for new co- lish global payments alliance 16branded credit card in China 12 General 19 Western Union enters into new interna-Consel and Genertel launch new co- tional remittance agreements... 16branded credit card 13 Crédit Mutuel and Desjardins Group ...and extends partnership with SociétéCaisse d’Epargne pilots transport card agree closer co-operation 19 Générale’s international retail businesswith Veolia Transdev in Reims 13 16Lloyds TSB re-launches Avios co-branded credit cards 13 Mortgages 16Targo Bank issues co-branded card inassociation with German TV 13 GMAC Mortgage to offer reward pro- gram in association with Loan Value Group 16 www.finaccord.com 3
  • 4. Global Affinity Finance Club Affinity InsuranceAffinity Insurance News Founded in 1928, and family-owned deal, FirstAssist will begin to operate and operated, TTK Group operates as part of Cigna’s health, life and acci-Accident / health insurance multiple businesses and reaches the dent division. In order to guarantee vast majority of Indian households continuity for clients and policyhold-AXA insures the professional with its wide range of everyday prod- ers, policies issued through FirstAssist ucts and services. will continue to be underwritten by itsgolfers of the Spanish PGA longstanding insurance partner, GreatAXA and the Professional Golfers …and begins distributing Lakes Reinsurance (which is part ofAssociation of Spain have signed an Sun Life’s stop-loss cover via Munich Re).agreement whereby the 780 member TPA network in the US ———————————————professional golfers will have an acci-dent insurance policy with AXA. The Cigna has agreed to make Sun Life Financial’s range of stop-loss insurance Business insuranceagreement is effective for one year andprovides cover for no extra cost to policies available via all the third-party administrators (TPAs) that are regis- Allianz France signs businessthese players. The broker Globalfinanzintermediated this deal which also en- tered with its ‘Cigna Payer Solutions’ insurance partnership withtails its offering services to the same system in the US. Stop-loss insurance France Angelsmembers for their other insurance is coverage for businesses that self-needs. fund (or self-insure) their own employ- Allianz France has signed a co- ees’ healthcare plans. By self-funding operation agreement with France An-Cigna signs agreement for these plans, firms take on the risk of gels, a French federation of investorshealth insurance joint venture their employees healthcare expenses. (‘business angels’) who make money Stop-loss insurance is a layer of protec- available to start-up businesses. Underin India... the terms of the agreement the federa- tion that comes into effect in cases where these healthcare costs exceed a tion will promote business propertyCigna and TTK Group, an Indian con- certain threshold. Sun Life is one of insurance, liability insurance, key manglomerate, have disclosed the signing the largest direct underwriters of stop- insurance and personal insurance (inof a joint venture agreement to sell a loss insurance in the US and, in its the areas of health and pensions) fromrange of health, wellness and insurance own right, also has a long history of Allianz to its members. In 2010, theproducts in India. The two partners providing TPAs with access to cost members of the association invested ahave begun the process of seeking containment programs. total volume of EUR 40 million in 320approval from the country’s Insurance new businesses in France.Regulatory and Development Authori- ———————————————ty (IRDA) and plan to submit a com- AXA collaborates with busi-prehensive filing early in 2012 with a Assistance ness associations in Germanyfull license to operate not expecteduntil 2013. Cigna expects to leverage Cigna acquires UK insurance In Germany, AXA and the nationwideits direct-to-consumer marketing capa- solutions provider FirstAssist business associations – Die Fami-bilities, which include a combination lienunternehmer – ASU and Die Jung-of tele-marketing, online and direct In the UK, Cigna has agreed to buy en Unternehmer – BJU – have beenresponse television. Combined with FirstAssist Insurance Services from working together on insurance issuesTTK’s nationwide reach, products will Barclays Private Equity. FirstAssist has since the start of October 2011. Mem-be marketed across geographies and nearly three million policyholders in ber companies of both organisationscustomer segments, including those in the UK, where it specialises in provid- can benefit by working with AXA torural areas. ing white-labelled insurance solutions get comprehensive advice and tailored relating to travel, health, employment insurance for their company’s specific and legal matters. As a result of the risks, plus cover for themselves, their www.finaccord.com 4
  • 5. Global Affinity Finance Club Affinity Insuranceemployees and their family. AXA will tribution network will continue to dis- Motor insurancealso inform members of the associa- tribute the company’s products whiletions about current trends in the insur- the brokerage network used by Aviva Santander unveils online bro-ance sector through events and semi- Vida y Pensiones will distribute Pe- kerage facility for motor in-nars, such as occupational pensions layos motor and household insurance surance in Spainand healthcare, that are important to products, thus expanding its range.companies for the retention of skilled In Spain, Santander has launched anworkers. The agreement also paves the way for online brokerage service Pelayo to become a priority partner for (‘Superbuscador’) for selling motorDie Familienunternehmer – ASU was Aviva in future non-life insurance op- insurance through both its 3,000founded in 1949 and is based in Berlin. erations in the bancassurance channel branches and its website to guaranteeAll entrepreneurs over 40 owning a in Spain, in which Pelayo would pro- the most competitive price availablecompany with at least ten employees vide full after-sales service and cus- from a panel of seven underwriters:or EUR 1 million in annual turnover tomer care. AXA, Caser, FIATC, Groupama, Lib-are eligible to join. There are currently R+V and German travel trade erty, Pelayo and Reale. Its objective for5,000 individual members who employ 2012 is to sell 60,000 policies by meansa total of 1.7 million people. Mean- association forge agreement of this facility with a similar servicewhile, Die jungen Unternehmer – BJU for retirement products earmarked for its operations in Latinis a partner association of Die Fami- American countries where online bro-lienunternehmer – ASU. Founded in R+V, the German insurer linked to the king and aggregation are also believed1950 and also based in Berlin, mem- co-operative movement, and to be developing rapidly.bers are all entrepreneurs under 40 Deutscher ReiseVerband (DRV), Ger-owning companies with the same staff- many’s largest association of travel Equity Insurance Partner-ing and financial characteristics as trade companies, have agreed on thethose of the other organisation. There ships retains Nissan mandate creation of a pension plan for theare currently about 1,500 individual more than 20,000 employees of the In the UK, and following a full tendermembers of Die jungen Unternehmer member companies of the DRV which process against a number of compet-– BJU. represent about 80% of the German ing, providers, Equity Insurance Part- tourism industry. The member compa- nerships (EIP) has retained its affinity——————————————— nies will promote a variety of R+V partnership with Nissan for manufac- products to their staff, including the turer-branded motor insurance. TheLife insurance / retirement savings Riester and Rürup contracts that are win sees EIP confirmed as the manu- the most common supplementary pen- facturer’s affinity partner, charged withAviva creates joint venture sion products in Germany. R+V has administering its branded program, forSpanish life insurance com- already struck similar deals with trade the next three years. In particular, Eq-pany associations in the chemical and phar- uity will underwrite Nissan’s ‘Free to maceutical industries. Go’ seven day motor insurance initia-In Spain, Aviva Vida y Pensiones has tive: cover notes are e-mailed directlytaken a 50% equity stake in the life ——————————————— to dealers, allowing buyers to driveinsurance company of Pelayo as part new or used vehicles away on the dayof a deal that envisages reciprocal of purchase. The deal with Nissanproduct marketing and a possible fu- continues EIP’s track record of collab-ture strategic agreement in non-life oration with high profile automotiveinsurance. It has acquired this stake manufacturer brands in the UK includ-from La Mondiale which previously ing Honda, Kia, Mazda, Renault andowned a half of the company known Triumph.as Pelayo Mondiale Vida. Pelayo’s dis- www.finaccord.com 5
  • 6. Global Affinity Finance Club Affinity Insurance——————————————— theft. The resulting package will be 52 million telecoms and multimedia available in all states except for Flori- customers in the US.Niche insurance da. ... and wins furniture insur-Solid commences partnership ——————————————— ance mandate in the UKwith Steve Perryman and Product insurance / warranties Meanwhile, in the UK, Assurant Solu-Watch It Live tions had been appointed by Guards- Assurant Solutions renews man, a division of the Valspar Corpo-In Sweden, two sports and entertain-ment tour operators, Steve Perryman product insurance partner- ration, as its UK underwriter. Guards-and Watch It Live, will offer Solids ship with RadioShack.... man is a leading provider of furnituretravel and cancellation insurance to protection plans with around 2.5 mil-their customers. In the case of can- Assurant Solutions has announced an lion in force in the UK and distribu-celled and moved events Solid will extension to its exclusive relationship tion relationships with retail outletsprovide compensation. The agreement with RadioShack for the provision of including DFS, Furniture Village andcomes before the major sports events product protection and repair service SCS.of 2012 including the World Ice Hock- plans to the customers of the latter.ey Championship in Sweden and Fin- RadioShack is a retailer of mobile tech- Bouygues Telecom launchesland, the UEFA European Football nology products and services, as well mobile protection schemeChampionship in Poland and the as products related to personal and with AsurionUkraine, and the Olympic Games in home technology and power supplyLondon. needs, with approximately 4,675 com- In France, Bouygues Telecom has pany-operated stores in the US and launched mobile phone insuranceEZShield partners with The Mexico, more than 1,475 mobile scheme ‘garantie échange 24’ throughWarranty Group for identity phone centres in the US, and around international technology insurer Asuri- 1,140 dealer outlets worldwide. Its on. This new policy protects Bouyguestheft cover partnership with Assurant Solutions in Telecom customers in the event of theIn the US, general insurer Virginia this field has been in place since 1994. loss, theft or damage to their phone.Surety Company (part of The Warran- This new policy promises the prompt ... establishes new relation- replacement of the handset with anty Group) and identity theft specialistEZShield have announced a new ship with Sprint.... identical model, and offers onlineagreement. Under the terms of this claims filing and expedited dispatch of Moreover, Assurant Solutions has also replacement phones.deal, identity theft expenses reimburse- disclosed that it has begun acting asment policies underwritten by VirginiaSurety Company will now form part of the exclusive provider of mobile pro- Domestic & General expands tection products and services for product protection deal withthe range of identity theft protection Sprint tablet and netbook computing Indesit...and restoration services configured devices. The Assurant ‘Advanced Pro-and sold by EZShield. Until now, tection Pack’ is designed to provide Also in the realm of product warran-EZShield’s products have been largely comprehensive cover, protecting both ties and insurance, Domestic & Gen-focussed on detecting fraud, helping hardware and customer data if a device eral, has announced that it is extendingvictims to regain control of their iden- is broken, lost, stolen or otherwise its existing product protection partner-tity, and repairing any damage to credit compromised. Data security and tech- ship with Indesit in Italy and the UKratings and public records; from now nical support options are also available to additional markets across Europe.on, however, customers will also be for purchase. By the middle of 2011, The agreement covers the Indesit andable to insure themselves against some Sprint Nextel possessed a base of over Hotpoint Ariston brands, and featuresof the costs associated with identity www.finaccord.com 6
  • 7. Global Affinity Finance Club Affinity InsuranceDomestic & General’s usual marketing tion (ISTA) have signed a partnership catastrophe evacuation, and extendedtechniques such as in-box cards, on- agreement in anticipation of the devel- travel disruption cover for missed de-product stickers, and online registra- opment of space tourism and commer- parture in case policyholders miss ation channels. cial space flight. With the first flights flight or cannot travel due to a strike, scheduled for October 2012, Allianz industrial action or mechanical break-... and launches computing Global Assistance will make contact down, which is considered especiallyassistance service with Pro- with space companies, travel agencies, important for independent travellers.Markt in Germany travellers and consumer groups in the coming months. This is the first time Solid Försäkring providesMeanwhile, in Germany, Domestic & that the space industry has provided travel insurance for HyllingeGeneral has launched a new customer insurance for this type of mission: Bus customerssupport service with ProMarkt where- previously insurance companies andby immediate help and advice will be the space industry had not been able to Hyllinge Bus, one of Sweden’s largestoffered to customers that own com- find agreement to provide insurance bus operators, has commenced a part-puters, games consoles, smartphones, for commercial sub-orbital flights. nership with Solid Försäkring to pro-and other electronic devices acquired vide travel insurance to its customers.from the electronics retail chain. Over Together with ISTA, Allianz Global The policy includes, among other140 topics are covered ranging from Assistance has developed a full suite of things, luggage delay insurance andhow to correctly install a computer to travel insurance and medical assistance compensation for missed vacation daysthe use of operating systems such as for space tourists, scientists and opera- due to bus delays.Linux, MacOS or Windows. tors, such as SpaceLinq, Virgin Galac- tic and Xcor, as well as offering advice ———————————————The plans have been designed to be as and personalised service for space trav-flexible and cost-effective as possible. ellers. GeneralEach plan is valid for up to two maindevices and any number of connected Hiscox links with Millstream AXA partners with the Chi-devices, and the support lines are open Underwriting for travel insur- nese community in Spainevery day from Monday to Saturday anceuntil 22:00. Customers can choose In Spain, AXA has signed a partner-from three different plan options: the In the UK, Hiscox has launched a new ship agreement with the LOGOS‘Pro30’ service with 30 calling minutes travel insurance policy that is provided Foundation for the distribution of lifeper month costs EUR 5.99 per month; by Millstream Underwriting, a manag- and non-life insurance products to thethe ‘Pro60’ service with 60 minutes ing general agent, and backed by AGA country’s Chinese community. Movil-costs EUR 9.99 per month; and the International (formerly Mondial Assis- com China, tied to the LOGOS Foun-‘Proflat’ service, with unlimited sup- tance). This can be purchased online dation, is the exclusive distributor forport, costs EUR 19.99 per month. or by telephone and provides a choice these policies. Initially, this deal will of Europe-wide or worldwide cover focus motor, household, health and——————————————— for individuals, couples and families. business insurance, not only for the Designed for more affluent individu- 50,000 LOGOS members but also forTravel insurance als, and for both business and leisure the 200,000 people who make up the use, the policy includes enhanced lev- Chinese community in Spain. In addi-Allianz Global Assistance and els of coverage such as up to GBP 10 tion, products such as health insuranceISTA team up for space tour- million of emergency medical cover, will be adapted to the specific needs ofism up to GBP 5,000 for cancellation and this group, for example offering the curtailment if a trip needs to be cut possibility to be treated in China inAllianz Global Assistance and the In- short due to an emergency, up to GBP case of serious illness. According toternational Space Transport Associa- 10,000 for political unrest and natural the Unión de Profesionales y Trabaja- www.finaccord.com 7
  • 8. Global Affinity Finance Club Bancassurancedores, there are more than 33,600 self- new service, endorsed by Legal & ———————————————employed individuals originating from General, provides financial advisersChina in Spain. with an expert legal solution to offer to Life insurance / retirement savings their clients.Chartis launches new affinity Ageas and Sabanci jointly in- ———————————————division in France crease their stake in Aksigor- Bancassurance News taIn France, Chartis has declared its in-tention to expand in the affinity mar- In Turkey, Ageas and Haci Ömerket for personal insurance in France by Accident / health insurance Sabanci Holding (Sabanci) have an-launching ‘SPECIALTYsolutions’. nounced an agreement to acquire addi-This will design products for a wide ING announces co-operation tional shares in Aksigorta to furtherrange of affinity groups including pro- with VGZ for health insur- strengthen the partnership between thefessional associations, sporting and ance two groups. Already the owners ofleisure organisations, commercial part- 30.99% of the shares in Aksigorta, theners such as hotels, supermarkets and In the Netherlands, ING Bank has intention of both parties is to acquire,cinema chains, educational establish- announced a partnership with health within a 12-month period, an equalments, festivals and ‘high risk’ groups insurer VGZ to provide ING’s cus- number of shares in Aksigorta throughsuch as the police, the army and fire tomers with a discounted health plan. the Istanbul Stock Exchange. Thebrigades. Each partnership would offer ING clients are entitled to a 10% dis- number of shares acquired will be de-tailored benefits and ‘group’ pricing. count on VGZ Health Insurance pur- pendent upon the share price evolu- chased through ING. This will offer tion of Aksigorta, but will not exceedChartis sees substantial potential in ING customers potentially the cheap- 10% of the total number of sharesthis market, as there are about 15.8 est basic health coverage in the Neth- outstanding.million people aged over 16 who be- erlands. The discount is applicable tolong to an association, 8 million mem- basic health coverage as well as on Allianz signs agreement withbers of sports federations, 70 million additional extended health policies,visitors to leisure parks annually, and Sberbank for the acquisition excluding dental care.1.2 million spectators at some 3,000 of Allianz Lifeevents and festivals each year ——————————————— In Russia, Sberbank and Allianz haveLegal & General tees up legal agreed on key terms for the acquisition Assistanceservices for business protec- of Allianz Life by the bank. The trans- action involves the acquisition by Sber-tion clients Solid Försäkringar links with bank of 100% of the share capital in Ikano Bank for road assis- Allianz Life by the end of 2011. How-In the UK, Legal & General has un- tance ever, the price of the transaction wasveiled a new deal with Lifetime LegalServices to provide a one stop legal not disclosed. According to Sberbank,shop for its business protection cli- Solid Försäkringar, the Swedish under- the main objective for the acquisitionents. Specifically, a panel of solicitors writer of niche insurance products, has is to participate more fully in the de-will offer a fixed price bespoke legal signed an agreement with Ikano Bank velopment of the savings and invest-service for the insurance company’s for the marketing of breakdown recov- ment insurance market in Russia. Alli-business protection customers. Life- ery insurance through Ikano Bank’stime Legal Services specialises in a anz, on the other hand, will focus on Swedish website. The product will also the development of a separate compa-range of legal services, including estate, be promoted through the newsletter ny, Allianz ROSNO Life, in Russia.small business, tax and trust law(including probate) and has been active that Ikano Bank regularly sends to itsin these fields for over 16 years. The customers. www.finaccord.com 8
  • 9. Global Affinity Finance Club BancassuranceAviva and DBS launch first ance joint venture between Cassa di In South Africa, Standard Bank hasRenminbi-denominated in- Risparmio di San Miniato and Cattoli- launched a new range of direct life ca, the insurer subsequently bought insurance products underwritten bysurance plan out the savings bank’s stake. the Liberty Group incorporating life,In Singapore, Aviva and DBS have disability, serious illness and salary HSBC receives permission to protection cover. Standard Bank haslaunched the ‘Dragon Renminbi Plan’,Singapore’s first Renminbi- expand bancassurance opera- already sold around 4 million insurancedenominated insurance plan. This can tions in China policies to its South African customers,be purchased at DBS branches with a mainly in the areas of credit life, funer-single premium of RMB 250,000, has a HSBC Life – which is a joint venture al expenses, and household cover.five-year duration and is structured as between HSBC Insurance (Asia) and Beijing-based The National Trust ac- Prudential ties with Citibanka non-participating endowment plan.Underwritten by Aviva, it is intended tive in Shanghai since 2009 – has been for Vietnamese bancassur-that the product will allow investors to granted a license allowing it to also ancetake advantage of opportunities on operate in Beijing. HSBC’s expandedoffer in the rapidly developing Chinese insurance presence in China will enable In Vietnam, Citibank has established amarket. DBS anticipates strong de- customers of HSBC Bank and Hang new bancassurance partnership withmand for the product having launched Seng Bank (another HSBC subsidiary) Prudential Vietnam Assurance, a sub-current and fixed-deposit accounts, to access a comprehensive range of sidiary of the UK’s Prudential. Specifi-currency-linked investments, and insurance solutions across 14 branches cally, a range of life, health, investmentRenminbi-denominated bonds, unit in Beijing. Insurance policies will be and retirement policies have beentrusts and structured notes earlier in available covering life and health pro- available at all Citi branches in Hanoi2011. tection, educational savings, invest- and Ho Chi Minh since the beginning ments and retirement. HSBC’s insur- of November 2011.Aviva and DBS have maintained a ance offering in China is primarilybancassurance partnership since 2001 aimed at affluent and high net worth ———————————————with this having been a significant con- customers, and Beijing is a key locationtributor to the growth of Aviva’s busi- for this demographic. Niche insuranceness in Singapore. Indeed, third quar-ter results for 2011 showed that Legal & General extends SPB enhances retailer bank’sAviva’s total life insurance sales grew bancassurance relationship Visa cards with new featuresby 65%, with sales via the bancassur- with Barclaysance channel having tripled when com- In France, SPB has developed a com-pared to the corresponding period for In the UK, Legal & General has dis- prehensive range of insurance solu-2010. closed that it is now providing all life tions for the Visa Premier and Visa and critical illness insurance protection Plus cards offered by Banque Edel, theSan Miniato Previdenza to be cover for the retail customers of Bar- banking arm of the E. Leclerc, one ofmerged into Cattolica As- clays on an advised basis. The new France’s leading retailing groups. Both arrangement builds on the mortgage cards include services that fit with newsicurazioni protection distribution arrangement consumer habits such as online shop-In Italy, Cattolica Assicurazioni has that Legal & General and Barclays ping and the purchase of mobile andannounced that it will integrate the have had in place since 2001. high-tech products, and as a result,business of San Miniato Previdenza SPB claims that the Visa Edel cards arewithin its main structure with the goal Liberty Group partners with the most feature-rich ones on the mar-of achieving greater competitiveness. Standard Bank for direct life ket.Originally, established as a life insur- insurance www.finaccord.com 9
  • 10. Global Affinity Finance Club BancassuranceFor EUR 2 a month, the Visa Plus up to eight years old, protecting China has for a long time been an im-Edel card offers services such as a two against electrical or mechanical break- portant market for Manulife, which-year full-refund guarantee in the event down. established a joint venture insuranceof TV breakdown, cover for tears and company called Manulife-Sinochemstains on clothing, purchase protection Fiditalia ties with Société Gé- Life (MSL) there in 1996. MSL nowinsurance, refunds in the event of non- nérale Insurance for used car serves around 650,000 policyholdersdelivery of online purchases, protec- extended warranties and, during 2011, its insurance prod-tion against fraudulent use of SIM ucts began to be distributed via Bankcards, identity theft protection In Italy, Fiditalia and Société Générale of China’s branches in Beijing, Shang-(including legal protection up to EUR Insurance (two sister companies within hai, Shenzhen, Guangdong, Jiangsu20,000 which is considered apt as the Société Générale grouping) have and Zhejiang.210,000 cases of identity theft are re- launched ‘SenzaSosta’, a new extendedported each year in France). warranty policy for used cars. Custom- This new framework agreement will ers acquiring used vehicles through pave the way for greater collaborationThe Visa Premier Edel card extends Fiditalia are given the opportunity to between the two groups, in both thisthese covers to purchases made from subscribe to the policy which will cov- and other retail banking areas. Forstores outside the E. Leclerc chain and er mechanical and technical defects for example, Bank of China acts as a cus-offers extra services for EUR 4 per up to seven years. The scheme in- todian and distributor for Manulife’smonth, namely missed event insurance cludes different levels of coverage and joint venture fund management com-(pre-booked tickets are refunded if the offers modular policies based on the pany, Manulife-TEDA Fund Manage-ticketholder cannot attend the event) vehicle’s age: ‘Garanzia Motore’ for ment, in which Northern Internationaland ‘e-reputation protection’ to help engine breakdown and ‘Garanzia Es- Trust & Investment Corporation alsointernet users whose online image and tesa’ for recently purchased or stand- holds a stake.reputation have been harmed. ard used cars which also includes cover …and also partners with a for electronic and mechanical parts——————————————— new bancassurance distribu- other than the engine as well as road assistance. tor in IndonesiaProduct insurance / warranties ——————————————— A number of Manulife Indonesia’sBarclaycard launches new insurance and wealth managementsuite of product insurance General products will be made available to cus-policies tomers of Danamon Bank from July Manulife signs a new frame- 2012, when a recently-signed bancas-In the UK, and through its partnership work agreement with Bank of surance partnership between these twowith Assurant Solutions, Barclaycard firms is due to come into effect. Dana- China…has launched a new suite of insurance mon operates a network of more thanproducts covering gadgets and kitchen Manulife Financial has further 2,300 branches and serves a broadappliances. Through its new gadget strengthened its strategic and opera- range of both lower- and middle-insurance proposition, it is providing tional ties with Bank of China by sign- income personal customers, as well ascover against accidental damage, tech- ing a new agreement that will remain businesses. It is also Indonesia’s solenical breakdown, theft and unauthor- in force for at least two years. Through issuer and acquirer of American Ex-ised usage for a range of gadgets under this deal, the two organisations are press payment cards. Manulife Indone-36 months old. The cost of mobile committed to working together in a sia is currently represented in 24 citiesphone insurance begins at GBP 1.49 number of mutually-beneficial areas, across the country, where it employsper month with iPhone cover at GBP including bancassurance. around 8,000 people and has approxi-5.99 per month. Barclaycard is also mately 1.5 million policies in force.providing cover for kitchen appliances www.finaccord.com 10
  • 11. Global Affinity Finance Club Affinity Banking——————————————— the UK. However, the new deal with GMAC-SAIC named pre- MG Motor extends only to retail car ferred finance provider forAffinity Banking News finance for private customers not to new Baojun brand in China wholesale financing for dealers.Affinity bank accounts SGM-Wuling, a three-way joint ven- AXA and Banco Pastor sup- ture between General Motors, LiuzhouBritannia extends affinity re- port the CESPA LUBRI- Wuling Motors and Shanghai Automo-lationship with Stoke City CANTES’ network of garages tive Industry Corporation (SAIC) inF.C. China, has announced that it has ap- In Spain, Banco Pastor and AXA have pointed GMAC-SAIC as the preferredIn the UK, Britannia, part of the Co- joined forces with CESPA LUBRI- finance provider for its new passengeroperative Bank, has launched a new CANTES to offer help with finance vehicle brand Baojun. The agreementcurrent account in partnership with and insurance for workshops in the includes both wholesale financing forStoke City F.C.. The ‘Current Account ‘Órbita CEPSA’ network. This has dealers to fund their inventory andPlus’, which has no monthly subscrip- been introduced in response to the retail financing for customers. Thetion charge and includes a fee-free difficulties faced by small and medium- Baojun brand was launched by SGM-overdraft, has been designed for Stoke sized companies in getting finance in Wuling in late 2010 with the first mod-City supporters, who are also poten- the troubled economic environment. els being sold in the summer of 2011.tially entitled to receive a GBP 100 In partnership with Banco Pastor, the- SGM Wuling said it expected sales ofcash bonus. Additionally, the bank will se workshops are offered finance on about 20,000 Baojun models by thegive away Stoke City-themed prizes to preferential terms and commission- end of 2011.customers holding this branded ac- free banking. Safety is also an im-count. Britannia has worked with portant factor for such garages so a GMAC-SAIC is itself a joint ventureStoke City to provide financial services second deal sees AXA offer compre- between Ally Financial (formerlyto club supporters since 1997, and also hensive motor trade insurance for GMAC), Shanghai Automotive Groupoffers junior and adult ‘Save and Sup- them. Finance and Shanghai General Motorsport’ accounts for the club’s fans. (Shanghai GM). It is one of the largest Aston Martin offers US cus- automotive finance providers in China——————————————— tomers retail ‘subvention fi- and acts as the partner of the Shanghai nancing’ from Chase GM brands in the country.Automotive finance In the US, Chase Auto Finance (a sub- Santander Consumer Bank reAlly Financial and MG Motor sidiary of JPMorgan Chase & Co.) has -enforces German car financeform partnership in the UK been selected by the UK luxury car partnerships manufacturer Aston Martin to provideMG Motor, the UK sports car manu- retail ‘subvention financing’ for its In Germany, Santander Consumerfacturer owned by the Chinese SAIC range of vehicles. This new scheme Bank has strengthened its position inGroup, has selected GMAC UK, a will allow Aston Martins 32 participat- the market for manufacturer-brandedsubsidiary of Ally Financial, as its pre- ing dealers in the US to provide their automotive finance and leasing ser-ferred financing provider for manufac- customers with more attractive interest vices through relationships with threeturer programs and standard rate fi- rates to finance new vehicle purchases. brands.nance. Specifically, GMAC UK will Chase Auto Finance offers a range ofprovide financing to MG customers prime and sub-prime financing options Firstly, in conjunction with the Infinitiunder the MG Financial Services to the automotive industry, along with luxury brand owned by Nissan, it hasbrand. GMAC UK is already the part- dealer floor plan, commercial banking introduced Infiniti Finance as a specif-ner of Vauxhall, Chevrolet and Saab in and treasury services. ic trading style. This follows on from www.finaccord.com 11
  • 12. Global Affinity Finance Club Affinity Bankingthe launch of the Infiniti brand in Ger- 1.3 million vehicles each year across credit and financial support for arti-many in 2009 and aims to support a the 14 countries in which it is active. sans.significant increase in sales by 2016 Moreover, the company will also bethrough both an expanded dealer net- able to finance other passenger car and These three institutions have pooledwork and the introduction of new commercial vehicle brands. their respective expertise to supportmodels. Dealer finance will be provid- artisans belonging to the FFCGEAed as well as consumer finance. ——————————————— through a partnership agreement. The main objectives of this agreement are:Secondly, it has disclosed a new part- Business banking to improve the handling of requestsnership with Volvo, starting from the for finance by an online tool thatbeginning of 2012, which will also Banco Popolare backs fi- transmits these requests between theencompass finance and leasing prod- nance scheme for women in Banque Populaire and the managementucts for both consumers and dealers. units of the FFCGEA; to protect the the agri-business sector private assets of entrepreneurs throughFinally, it is expanding a long-standing loans that eliminate or limit personal In Italy, CreditAgri Italia and Coldirettirelationship with KTM Sportmotorcy- liability; and to improve actions to Donne Impresa, an association repre-cle with the introduction of the KTM prevent artisans from running into senting entrepreneurial women inFinance trading style, again with the difficulties. charge of companies in the agri-focus on the provision of financial business sector, have created a financ-services for both consumers and deal- ——————————————— ing scheme in partnership with Bancoers. KTM is a leading manufacturer of Popolare. By means of the scheme,off-road sports motorcycles and has financing can amount to between EUR Co-branded cardsaround 1,400 dealers globally, of 10,000 and EUR 30,000 granted for awhom 140 are active in Germany itself. ANZ and SRCB combine for variety of purposes and with a duration of from 36 to 60 months preceded by new co-branded credit card inSantander Consumer Finance a six month period during which inter- Chinadrives into Chinese joint ven- est-only repayments are required.ture Australia and New Zealand Banking Banques Populaires sign Group Limited (ANZ) and ShanghaiMoreover, Santander Consumer Fi- Rural Commercial Bank (SRCB) have agreement to facilitate fi-nance has announced the creation of a launched a new co-branded ‘Platinumjoint venture with Chinese car manu- nance of artisans and World Travel’ card, available infacturer Anhui Jianghuai Automobile China for clients of both banks. The In France, the Banques PopulairesCompany (JAC), for the provision of card combines a China UnionPay grouping has signed the first partner-automotive financial services in China. ‘RMB Priority Platinum’ card with a ship agreement to facilitate the financ-Under the terms of the agreement, MasterCard ‘USD World’ card to pro- ing of artisans with two leading associ-JAC and Santander Consumer Finance vide a premium dual card and dual ations, SOCAMA (Sociétés de Cautionwill each hold a 50% stake in the new currency package. Mutuelle et Artisanale) and FFCGEAcompany which will have initial capital (Fédération Française des Associationsof CNY 500 million (about EUR 58 Cardholders are entitled to a number de Gestion et de Comptabilité et desmillion). The new company will pro- of travel-related benefits including Centres de Gestion d’Economie devide financial products through JAC’s airport lounge services, travel insur- l’Artisanat). The Banques Populairesnetwork of more than 1,000 dealer- ance, membership of air mileage pro- and SOCAMA, finance, guarantee andships, taking advantage of the expertise grams and special merchant offers support small businesses, while theof Santander Consumer Finance in this from China UnionPay, MasterCard FCGEA wishes to improve access tofield, which is itself based on the fact and the ‘ANZ Spot’ program, as wellthat it finances the purchase of around as complimentary services including a www.finaccord.com 12
  • 13. Global Affinity Finance Club Affinity Bankingchauffeur service and free medical Anyone can acquire this card at a viewers of the ProSieben televisioncheck-up. Caisse dEpargne branch without channel. The bank added that it has set needing to have a current account as a up an advertising budget of more thanANZ and SRCB began working closely simple supporting account is opened EUR 20 million to promote the cardtogether in 2010, and combine ANZ’s to enable customers to recharge it. It over the next three years.experience in the premium card indus- can also be used as a prepaid Visa cardtry with SRCB’s retail customer base at all merchants accepting Visa, in ———————————————of close to 7 million accounts, with a France and internationally, while thedistribution network of over 330 out- contactless payment facility has a limit Inter-bank card distributionlets in Shanghai, and Hunan and of EUR 20. 750 consumers will trialZhejiang provinces. ANZ has been a the card for the first year. American Express establishespartner of SRCB since 2007 and now card issuing partnership withholds a 20% stake in the Chinese bank. Lloyds TSB re-launches Bank of China... Avios co-branded credit cardsConsel and Genertel launch American Express and Bank of Chinanew co-branded credit card In the UK, and in conjunction with have unveiled a new strategic partner- travel rewards program Avios ship, whereby Bank of China will beginIn Italy, Consel and Genertel, General- (formerly Airmiles UK), Lloyds TSB issuing credit cards carrying the Ameri-i’s online insurance arm, have devel- has re-launched its ‘Duo’ and ‘Premier can Express brand in China targetingoped the Genertel Visa credit card Duo’ American Express and Master- its base of private banking customers.designed to fund the insurer’s life in- Card co-branded credit cards. As part The new card offers a range of bene-surance products. Credit repayments of the re-launch, the new versions will fits including premier banking services,can be made across ten months with offer up to 10,000 bonus ‘Avios’ (the access to premium golf courses, fast-no interest charged. Moreover, the new name for ‘Miles’) to new custom- tracking through immigration and se-card is free-fee is accepted at more ers who spend at least GBP 500 each curity at selected airports and access tothan 600,000 points of sale across the month during their first three months lounges in major airports around thecountry. Consel is a consumer finance of holding the card. It was hoped that world. Cardholders can also enjoycompany jointly owned by Banca Sella this incentive would prove popular privileges across an array of hotelsand Alleanza Toro, a subsidiary of given that it coincides with Christmas. through the American Express ‘Entre’Generali. program, as well as offers from mer- Targo Bank issues co- chants around the world throughCaisse d’Epargne pilots branded card in association American Express ‘Selects’. In addi-transport card with Veolia with German TV company tion, the card provides access to a 24-Transdev in Reims hour concierge service, comprehensive In Germany, Targo Bank has launched overseas relocation services, andAn innovation from the Caisse a new co-branded credit card in associ- healthcare and wellness services pro-dEpargne Lorraine Champagne- ation with a subsidiary of the ProSie- vided by Raffles Medical Group.Ardenne in partnership with Veolia benSat1 television group. The newTransdev in France is the ‘Citevia’ ‘ProSieben Entertainment’ card is the ... and with KB Kookmincard, which has been used to pay for first German co-branded credit card Card in South Koreabus and tram fares in Reims on a trial promoted by a bank in associationbasis from November 2011. This card with a major TV company, according In South Korea, American Expresscan be used as a normal prepaid bank to the two partners. Targo Bank said and KB Kookmin Card, the secondcard (including contactless payments) that it expects that the new credit card largest card issuer in the country withand as a transport card. All types of will enable it to reach many young around 20 million cards in circulationtransport ticket can be loaded onto the people in Germany who are regular (equivalent to a market share ofcard in Reims. around 14%), have disclosed that the www.finaccord.com 13
  • 14. Global Affinity Finance Club Affinity Bankinglatter will become an issuer of cards ment with the China-based payment BNP Paribas Mobile iscarrying the former’s brand. Specifical- card network, China UnionPay. Credit launched in conjunction withly, KB Kookmin Card will issue ‘super Saison and UC Card have already be- Orangepremium’ cards that will target its high gun working to improve the ac-net worth customer base and offer a ceptance of UnionPay cards at retail The strategic alliance between BNPwide range of benefits both locally in outlets in Japan, and plans to allow Paribas and Orange signed in July 2011South Korea and abroad. In fact, by UnionPay cardholders to execute cash and noted in the Summer 2011 editionmeans of the partnership, American withdrawals and balance enquiries at of Finaccord’s Global Affinity FinanceExpress and KB Kookmin Card hope Mizuho Bank’s network of ATMs are Club has been launched in Novemberto expand their presence among the also under way. Similarly, Mizuho 2011. BNP Paribas Mobile enablesgrowing number of affluent consumers Bank is exploring the possibility of customers in France to carry out nor-in South Korea. KB Kookmin Card offering UnionPay cards to its Japa- mal banking services through theirwill be responsible for all operations nese customers. In light of the rapidly mobile phones and offers the latestsupporting the issuance of the cards, increasing mutual tourism between mobile payments capability for bothincluding billing and payment systems, China and Japan, and also with large proximity payments and person-to-accounting, customer service, credit numbers of Japanese firms seeking to person payments. The service is of-management and charge authorisa- do business in China, both parties fered on powerful smartphones includ-tions, as well as the actual marketing of hope to benefit from developing finan- ing those equipped for NFC (near fieldthe cards. cial products that will facilitate easier communication) for contactless pay- cross-border payments and foreign ments, and has four subscription op-Diners Club International transactions. tions. NFC technology can be used bypartners with HDFC Bank in customers with the ‘Cityzi’ mobile ———————————————India through the ‘KIX’ service; this oper- ates currently in Nice and Strasbourg,Diners Club International has entered Mobile payments with a launch planned for four moreinto a strategic alliance with HDFC cities in 2012.Bank, India’s second-largest privately- Barclaycard and Orangeowned bank. Under the new agree- launch new mobile payments Crédit Agricole commencesment, HDFC Bank will not only issue handset in the UK mobile contactless paymentDiners Club credit cards, but will also In the UK, Barclaycard and Orange pilot in Franceprovide the related merchant acquiringservices. This latter fact is likely to have announced the launch of the Also in France, Crédit Agricole anddramatically increase the acceptance second ‘Quick Tap’ handset. The Sam- Visa Europe have launched a new pilotand usability of Diners Club cards sung ‘Wave 578’ is available exclusively for mobile payments based on Mi-across India, where the number of from Orange, and comes after the croSD (micro secure digital card) tech-middle-class and wealthy individuals is introduction of the Samsung ‘Tocco nology developed by Visa Europe.growing rapidly. Quick Tap’ earlier in 2011. Customers This pilot forms part of the develop- can transfer funds of up to GBP 100 ment of mobile contactless paymentsJapan’s Mizuho Financial to their contactless mobile payment in France, and extends previous trialsGroup enters into partnership account, after which the phone is conducted in Nice in 2010 and Stras-with China UnionPay ready to make payments of GBP 15 bourg in September 2011; it is taking and under simply by tapping their place in Caen and run by the Norman-Three Japanese subsidiaries of Mizuho ‘Quick Tap’ mobile handset against a dy-based subsidiary of Crédit AgricoleFinancial Group (namely Credit contactless reader at over 50,000 mer- from December 2011 to June 2012.Saison, Mizuho Bank and UC Card) chant outlets, including EAT, McDon-have entered into a collaborative agree- ald’s, Pret A Manger and Subway. www.finaccord.com 14
  • 15. Global Affinity Finance Club Affinity BankingIn fact, from December 2011, 200 of fone m-paisa outlets (local retailers country’s first ever prepaid contactlessCrédit Agricole’s customers and em- that can effectively then act as sub- wristwatch, that allows users to makeployees have been testing this new agents for HDFC Bank) without hav- contactless payments for a value of uppayment solution, using a MicroSD ing to visit an actual bank branch. This to GBP 15 at more than 70,000 retail-card that contains a Visa secure pay- service is already up and running ers. According to MasterCard, contact-ment application. Customers receive a across the state of Rajasthan, where less wristwatches are already in use incase containing the MicroSD card around 2,200 retailers in 320 villages Poland, Turkey and a number of mar-which is then integrated with an iPh- and 54 towns are able to offer these kets in Asia and the new ‘Watch2pay’one, and its NFC (Near Field Commu- services. product builds on the growing demandnication) functionality becomes active for contactless payments and prepaidwhen the user downloads the ‘Express MasterCard links with Etisa- cards in the UK, which respectivelyMobile Payment Application’ from the lat for launch of new mobile offer consumers greater security thanonline Apple store. payments service cash and allow them to segment and set budgets for different spendingThey can then make purchases of up In the UAE, MasterCard has joined needs. Worldwide, MasterCard hasto the value of EUR 20 from all mer- forces with both Etisalat, a telecoms issued nearly 100 million cards andchants accepting Visa contactless pay- provider in the Middle East, Africa other devices enabled with a ‘PayPass’ments in the vicinity of Caen by bring- and Asia, and Research in Motion, the contactless facility. The wristwatch caning their mobile phones close to the manufacturer of Blackberry be acquired online and comes with apayment terminal. Crédit Agricole and smartphones, for the launch of pay- reloadable MasterCard prepaid cardits subsidiary Cedicam have chosen ments empowered with NFC (near which is not linked to a bank accountGemalto to customize the MicroSD field communication) technology. Net- or any line of credit and can, therefore,cards, and to support the pilot; mean- work International and Oberthur help users to budget more effectivelywhile, the MicroSD card and dedicated Technologies are also supporting the and avoid getting into debt.iPhone case are provided by Device development of this service. It is antic-Fidelity. ipated that this launch will enhance the MasterCard and Telefónica ease, security and speed with which team up for Brazilian mobileHDFC Bank and Vodafone consumers make daily payments as finance joint venturelaunch mobile banking prod- those with an enabled smartphoneuct for rural communities (obtainable from Etisalat) will simply In Brazil, MasterCard and Telefónica need to tap it at any MasterCard have announced the creation of a jointIn India, HDFC Bank and Vodafone ‘PayPass’ terminal in order to complete venture to offer mobile financial solu-have launched a new mobile banking their purchase by virtue of the fact that tions for 65 million customers of theinitiative that aims to make retail bank- it will be linked to their MasterCard Vivo mobile telecoms brand. The initi-ing services available to millions of credit, debit or prepaid card. ative will create a mobile wallet allow-unbanked consumers. The use of mo- ing consumers to make payments viabile telephones for banking and m- MasterCard facilitates intro- their mobile phones as well as to trans-commerce is widely regarded as one of duction of prepaid contact- fer funds, pay bills and make onlinethe leading drivers of financial inclu- purchases. The service is intended to less wristwatchsion among India’s largely rural popu- promote financial inclusion for Brazili-lation, and this new product – called In the UK, MasterCard has created a an consumers allowing operationsthe ‘MobileBank Account with Voda- partnership with wristwatch manufac- between banked and un-banked con-fone m-paisa’ – allows customers to turer LAKS and Vincento, a company sumers and fostering the acceptance ofcarry out basic transactions using their specialising in prepaid solutions, to mobile payments in locations that tra-mobile handsets. Significantly, custom- introduce a wristwatch incorporating a ditionally have only accepted cashers will also be able make cash deposits MasterCard ‘PayPass’ facility, the transactions, such as taxis and deliveryand withdrawals at appointed Voda- www.finaccord.com 15
  • 16. Global Affinity Finance Club Affinity Bankingservices as well as direct sales such as Furthermore, the two partners are Union’s services in more than 2,500door-to-door transactions. The new attempting to simplify the transfer of locations across 25 countries and thecompany will operate independently money for consumers by making their agreement is an extension of the twowith each shareholder holding 50% of electronic payment networks interop- companies successful collaboration inthe equity. erable. In particular, consumers using Europe and Africa. Western Union for money transfer——————————————— services will be able to arrange for a ——————————————— money transfer to go directly to anMoney transfers eligible MasterCard product. Senders Mortgages will also be able to pay for moneyMasterCard and Western Un- transfers using a card or account GMAC Mortgage to offer re-ion establish global payments backed by the MasterCard brand and ward program in associationalliance to move funds through a participating with Loan Value Group Western Union agent location.MasterCard and Western Union have In the US, GMAC Mortgage, a subsid-finalised a global agreement that they Western Union enters into iary of Ally Financial, has announcedhope will make electronic payments, new international remittance that it has teamed up with the Loanincluding prepaid cards and money agreements... Value Group to offer the ‘Responsibletransfers, more efficient and conven- Homeowner Reward’ (‘RH Reward’)ient for consumers around the world. In the Nordic countries, Western Un- program to a group of Veterans Ad-The two partners estimate that around ion has announced an agreement with ministration customers who are up-to-2.5 billion adults worldwide are finan- FOREX Bank to offer money transfer date on their mortgage payments butcially under-served, and that within the services. FOREX will offer the West- have seen a significant decline in theUS, more than a quarter of the adult ern Union service at 100 agent loca- value of their homes. The programpopulation is excluded from the finan- tions in Denmark, Finland, Norway returns a portion of their lost equity incial mainstream. However, they con- and Sweden. Moreover, in the US, exchange for continued, timely mort-sider that financial services such as Western Union has signed a prepaid gage payments.money transfers and prepaid cards are agreement with 7-Eleven to offer con-helping to improve access for these sumers the ability to obtain the ‘RH Reward’ is designed to encourageconstituencies. ‘Western Union MoneyWise’ general homeowners to avoid default and pos- purpose reloadable prepaid card at 7- sible foreclosure by offering a cashThe global relationship makes Master- Eleven store locations. The card will reward when specific payment mile-Card the preferred brand for prepaid be available at select 7-Eleven US retail stones are met. The program is meantprograms sponsored by Western Un- locations from early 2012. to provide an incentive without chang-ion around the world and establish ing the terms of the original mortgageWestern Union as the preferred money ...and extends partnership contract or requiring additional docu-transfer service for MasterCard. In mentation or disclosures by the home- with Société Générale’s inter-fact, consumers will have access to a owner. Participation in the program isglobal network to transfer and load national retail business voluntary and there is no cost to thefunds onto prepaid cards, and custom- homeowner. In addition, Western Union has alsoers with MasterCard or Western Union enlarged its partnership with Société GMAC Mortgage has offered the pilotprepaid cards will be able to reload Générale by means of which the for- program to more than 4,000 militarythese at MasterCard ‘rePower’ loca- mer’s money transfer service will be borrowers and their families who havetions as well as at participating West- introduced by the bank in new coun- obtained a mortgage loan guaranteedern Union agent outlets. tries across Europe. Subsidiaries of through the Veterans Administration. Société Générale already offer Western www.finaccord.com 16
  • 17. Global Affinity Finance Club Affinity BankingFor a fixed period of time following the Walgreens chain of retail stores. Caisse d’Epargne launchesenrolment, each month the homeown- Rabobank itself has around 120 multi-retailer prepaid gifter makes their payment on time, an branches and 160 ATMs across Cali- cardadditional reward is credited to their fornia, but customers will also now be‘RH Reward’ account. When the loan able to use ATMs at more than 500 In France, the Caisse d’Epargne bank-is fully paid off, if all required payment Walgreens stores without paying any in g grou p ha s lau nche d themilestones have been met, the home- service charges. ‘CADOCARTE’ card, a prepaid giftowner will receive a cheque from card that can be charged for purchasesGMAC Mortgage for the full balance ——————————————— across a network of nearly 50 retailof their ‘RH Reward’ account. partners including Conforama, Darty Retailer cards and FNAC, representing a total of——————————————— 5,000 points of sale. The American Express forges link ‘CADOCARTE’ is available as a singleRetailer banking with Japanese retailer card purchase (non-rechargeable) gift card issuer… for an amount ranging from EUR 30BMO Bank of Montreal and to 150, and is free of charge except forCanadian retailer unveil two In Japan, MI Card Company, a card checking balances by SMS (EUR 0.50)co-branded accounts issuing subsidiary of the Isetan and administration fees for cards that Mitsukoshi department store grouping, exceed their expiry date by more thanIn Canada, BMO Bank of Montreal and American Express, have launched a year. It is supported by a website thathas launched two new co-branded a new retailer card carrying the Ameri- lists retail partners and gives cardhold-bank accounts in association with retail can Express marque. The card carries ers a statement of their transactions.group Sobeys, whose grocery brands an array of benefits including discount(which include Foodland, FreshCo, offers at its department stores, a re- Citigroup unveils new initia-IGA and Thrifty Foods) account for ward program, exclusive travel and tives in the Czech Republicaround 1,300 stores across the country. entertainment benefits, and luxuryOne of these co-branded accounts is a offers. and the Philippines…fee-free current account, whereas the In the Czech Republic, Citi has intro-other is a high-interest savings ac- …and launches prepaid card duced a new contactless co-brandedcounts. Both accounts come with a for US retail chain credit card for customers shopping atdebit card and also allow consumers to the Metropole Zlicin shopping centreaccumulate Club Sobeys reward points In the US, American Express has and other locations. In particular, card-or AIR MILES in various ways, alt- launched a reloadable prepaid card holders receive cashback of 2%, in thehough the exact configurations (and with no monthly or maintenance fees form of ‘Citi Life Premiums’, on pur-names) of these products will vary in conjunction with the Target retail chases with a value of up to CZKslightly between regions. chain, which has more than 1,000 out- 2,000 each month. ‘Citi Life Premi- lets across the country. The card is ums’ can then be drawn in the form ofRabobank’s US subsidiary available at participating Target stores shopping vouchers with a denomina-expands cash access by part- and funds can be loaded at the register tion of either CZK 500 or CZK 1,000nering with Walgreens using multiple loading options with the that can be used at all outlets in the ability to reload in-store, online or by Metropole Zlicin shopping centre. InRabobank America (the California- phone. Features of the card include addition, cardholders can also obtainbased subsidiary of the eponymous packaged purchase protection insur- discounts of up to 25% on goods andDutch banking group) has expanded ance, and both road and travel assis- services acquired from Citi Club mer-its local and state-wide banking net- tance. chant stores, which number almostwork through a new partnership with 200 across the Czech Republic, includ- www.finaccord.com 17
  • 18. Global Affinity Finance Club Affinity Bankinging the Apanage, Blažek, Delmas, Eif- Desjardins takes control of The MasterCard gift card is available infel Optic, Mania, Stones and Top Time Staples Canada’s credit card face value denominations of GBP 30outlets in the Metropole Zlicin centre or GBP 50, can be purchased for a one portfolioitself. -time fee and includes ‘Chip@PIN’ In an agreement due to be finalised functionality making it among theMeanwhile, in the Philippines, Citibank most secure gift cards available in the early in 2012, Desjardins Card Serviceshas introduced new benefits attached UK. (DCS) will acquire a substantial part ofto the retailer card issued in partner- Staples Canada’s store card portfolio.ship with Mercury Drug. Specifically, Moreover, an agreement with In- In addition to purchasing the out-four leading hospitals (Asian Hospital, Comm, a distributor of stored-value standing receivables and client ac-Makati Medical Center, St. Luke’s gift and prepaid cards, makes way for counts that are currently being man-Medical Center and The Medical City) the expansion of the Western Union aged by Citi Cards Canada, DCS willhave agreed to offer a discount of up ‘GoCash’ service, a prepaid money also make its point-of-sale financingto 10% for various services acquired transfer service. By means of this ser- option (known as ‘Accord D’) availablefrom them by cardholders, including vice, consumers have the option to at all 330 Staples outlets nationwide.hospital bills, inpatient pharmacy pur- select packages with any of three pre- Part of the Desjardins Group, DCS ischases and laboratory services. In addi- paid amounts: GBP 50, GBP 100 or the largest provider of credit and debittion, cardholders also benefit from a GBP 200. The ‘GoCash’ service can be card solutions in Quebec, and the fifthfree annual physical check-up at used for both domestic and interna- -largest in the rest of Canada; of itsHealthway Medical. tional money transfers. Once pur- 55,000 merchants across the country, it chased, the sender needs to complete… and renews major retailer states that 7,000 currently offer the the transaction by telephone through a ‘Accord D’ point-of-sale financingcard relationships in the US Western Union customer service rep- product. resentative and to provide the moneyIn the US, Citibank has announced a transfer information to the receiver.multi-year renewal of its private label Western Union extends pre-credit card relationship with Sunoco, a paid platform to the UK ———————————————fuel retail network, which has been in Western Union has announced that it Retailer financeplace since 2004. This follows on from is extending its prepaid card platformthe launch shortly before of a new to the UK with the launch of both a La Redoute and Créditrewards card that provides discount of Western Union MasterCard gift cardUSD 0.05 per gallon on purchases of Agricole Consumer Finance and the ‘GoCash’ prepaid card service,fuel through Sunoco. replace cards with online fi- providing consumers with new ways toAlso in the US, and in the wake of a share money with friends, family and nancepartnership established originally in other acquaintances at any time. The launch marks the first international Two new services have been devel-2003, Citi has agreed a multi-year re- extension of Western Union’s prepaid oped by Crédit Agricole Consumernewal of its private label credit card program outside of the US with fur- Finance for La Redoute in France toagreement with Sears Holdings Corpo- ther expansion planned in coming replace the ‘Kangourou’ card. La Re-ration, the country’s fourth largest months to Asia, Latin America and doute and Crédit Agricole Consumerretail group. Sears Holdings retail additional European countries. As one Finance have been partners since 1968,brands include Kmart and Lands End of the leading retailers of gift cards in using the brands Sofinco and Finaref,as well as Sears, a leading home appli- the UK, WHSmith is now stocking and they originally created theance retailer in North America with one or both products at over 500 high ‘Kangourou’ card for retail finance.over 2,200 branded outlets. street and travel stores across the However, the Internet has changed the country. way that retailers operate, and the needs of retail finance have changed www.finaccord.com 18
  • 19. Global Affinity Finance Club Affinity Bankingwith them: La Redoute is now the a fashion and home merchandise chainleading online retailer of clothes and with around 260 stores. The Selectfurnishings in France, and 75% of its Comfort and Sleepy’s programs wereturnover is derived online. The two launched originally in 1999 and 2001,new services are called ‘R-Express’ and respectively, while that with Stein Mart‘R-Premium’, and are designed to sup- commenced in 2006 and, in the latterport online shopping while giving cus- case, the two partners plan to launch atomers more flexibility in choosing new private label card in 2012.how they want to make their pay-ments. ———————————————GE Capital creates two new Generalretailer finance partnerships Crédit Mutuel and Desjardinsin the US... Group agree closer co-The most recent quarter has also seen operationa typical flow of new or renewed retail-er finance agreements on the part of A new co-operative partnership hasGE Capital in the US. Firstly, its retail been announced between Desjardinsfinance division has established a new, Group of Canada and Crédit Mutuelmulti-year contract for a private label of France, in a move that will see thesecredit card with PANDORA, a manu- two mutual banking groups workingfacturer of hand-finished jewellery together more closely in a number ofheadquartered in Denmark that was strategic and operational areas. Specificfounded in 1982 and that has almost projects are already underway as part500 branded stores around the world, of this international initiative, includinggenerating annual revenues of around the joint development of an e-paymentEUR 895 million in 2010. solutions product. Furthermore, each group will establish an overseas pres-In addition, it has also created a new ence within the headquarters of theagreement to provide consumer fi- other party; one of Crédit Mutuel’snance through the authorised dealers subsidiaries (namely Banque Transat-of C.F. Martin & Co, a manufacturer lantique) will open an office atof guitars, on a nationwide basis. Spe- Desjardin’s Le Windsor building incifically, customers purchasing a guitar Montreal, and Desjardins will be send-will be able to finance that using an ing a representative team to Créditaffinity card set up with the National Mutuel’s Parisian site in order to fur-Association of Music Merchants. ther assist its Canadian business cus- tomers in their dealings within Euro-... and renews three others pean markets.Moreover, it has also renewed its re- ———————————————tailer card deals with Select Comfort, abedding retailer with around 400shops, with Sleepy’s, the country’slargest specialised mattress retailer withover 700 outlets, and with Stein Mart, www.finaccord.com 19
  • 20. Global Affinity Finance ClubOrganisations in this issueAgeas, 8 Finaref, 18 RadioShack, 6Aksigorta, 8 FirstAssist, 4 Raffles Medical Group, 13Alleanza Toro, 13 FNAC, 17 Reale, 5Allianz, 4, 7, 8 Foodland, 17 Renault, 5Allianz Life, 8 France Angels, 4 Saab, 11Ally Financial, 11, 16 FreshCo, 17 Sabanci, 8American Express, 10, 13, 17 Furniture Village, 6 SAIC Group, 11Anhui Jianghuai Automobile Company, 12 GE Capital, 19 San Miniato Previdenza, 9ANZ, 12, 13 General Motors, 11 Santander, 5, 11, 12Assurant Solutions, 6, 10 Generali, 13 Sberbank, 8Aston Martin, 11 Genertel, 13 SCS, 6Asurion, 6 Globalfinanz, 4 Sears Holdings Corporation, 18Avios, 13 GMAC, 11, 16, 17 Select Comfort, 19Aviva, 5, 9 Great Lakes Reinsurance, 4 SGM-Wuling, 11AXA, 4, 5, 7, 11 Groupama, 5 Shanghai Automotive Industry Corporation, 11Banca Sella, 13 Guardsman, 6 Sleepy’s, 19Banco Pastor, 11 Hang Seng Bank, 9 Sobeys, 17Banco Popolare, 12 HDFC Bank, 14, 15 SOCAMA, 12Bank of China, 10, 13 Honda, 5 Société Générale, 10, 16Banque Edel, 9 HSBC, 9 Société Générale Insurance, 10Banque Transatlantique, 19 Hyllinge Bus, 7 Sofinco, 18Banques Populaires, 12 IGA, 17 Solid Försäkringar, 6, 7, 8Barclaycard, 10, 14 Ikano Bank, 8 SpaceLinq, 7Barclays, 4, 9 InComm, 18 SPB, 9Barclays Private Equity, 4 Indesit, 6 Sprint, 6BMO Bank of Montreal, 17 Isetan Mitsukoshi, 17 Shanghai Rural Commercial Bank SRCB, 12, 13BNP Paribas, 14 International Space Transport Association ISTA, 7 Standard Bank, 9Bouygues Telecom, 6 KB Kookmin Card, 13 Staples, 18Britannia, 11 Kia, 5 Steve Perryman, 6C.F. Martin & Co, 19 Kmart, 18 Stoke City F.C., 11Caisse d’Epargne, 13, 17 KTM Sportmotorcycle, 12 Subway, 14Caser, 5 La Mondiale, 5 Sun Life Financial, 4Cattolica Assicurazioni, 9 La Redoute, 18 Sunoco, 18CESPA LUBRICANTES, 11 LAKS, 15 Target, 17Chase, 11 Lands End, 18 Targo Bank, 13Chevrolet, 11 Legal & General, 8, 9 Telefónica, 15China UnionPay, 12, 14 Liberty, 5, 9 The Warranty Group, 6Cigna, 4 Liberty Group, 9 Thrifty Foods, 17Citigroup, 17 Liuzhou Wuling Motors, 11 Triumph, 5Coldiretti, 12 Lloyds TSB, 13 TTK Group, 4Conforama, 17 Loan Value Group, 16 Valspar Corporation, 6Consel, 13 Manulife, 10 Vauxhall, 11Crédit Agricole, 14, 15, 18 MasterCard, 12, 13, 15, 16, 18 Veolia Transdev, 13Crédit Mutuel, 19 Mazda, 5 Vincento, 15CreditAgri, 12 McDonald’s, 14 Visa, 9, 10, 13, 14, 15Danamon Bank, 10 Mercury Drug, 18 Vodafone, 15Darty, 17 Metropole Zlicin, 17 Walgreens, 17DBS, 9 MG Motor, 11 Watch It Live, 6Desjardins, 18, 19 MI Card Company, 17 Western Union, 16, 18Deutscher ReiseVerband, 5 Mizuho Financial Group, 14 WHSmith, 18Device Fidelity, 15 Munich Re, 4DFS, 6 National Association of Music Merchants, 19Die Familienunternehmer - ASU, 4, 5 Nissan, 5, 11Die Jungen Unternehmer - BJU, 4 Orange, 14Diners Club International, 14 PANDORA, 19Domestic & General, 6, 7 Pelayo, 5EAT, 14 Pret A Manger, 14Equity Insurance Partnerships, 5 Professional Golfers Association of Spain, 4Etisalat, 15 ProMarkt, 7EZShield, 6 ProSiebenSat1, 13FFCGEA, 12 Prudential Vietnam Assurance, 9FIATC, 5 R+V, 5Fiditalia, 10 Rabobank, 17 www.finaccord.com 20
  • 21. Global Affinity Finance ClubAbout GAFC About Finaccord Does your organisation have Finaccord is a leading market research,The Global Affinity Finance Club is publishing and consulting company news about its affinity or part-Finaccord’s quarterly newsletter about specializing in financial services. We nership marketing relationshipsaffinity financial services worldwide. provide our clients with insight with a that we missed in this newslet-Through this, Finaccord publishes top particular focus on marketing and ter? To produce it, we systemat-line information about key strategic distribution strategies, including affini- ically research close to 250 ma-developments in affinity and partner- ty and partnership marketing. jor financial services institu-ship marketing of financial services tions from around the worldaround the world, segmented between Our areas of expertise include: affinity each quarter. However, if youaffinity insurance news, bancassurance and partnership marketing; automotive would also like us to include financial services; bancassurance; com- your company in this research,news and affinity banking news. mercial non-life insurance brokers; please send an e-mail to analy-This service differs from that provided consumer intelligence; creditor insur- sis@finaccord.com and we willby other research companies because ance; distribution channels; extended ensure that it is tracked in fu-its focus is genuinely global, often warranties; insurance and assistance ture quarters.translating news that only appears in linked to payment cards and bank accounts; mobile gadget and telephonelanguages other than English. In addi- insurance; retailer financial services; To access the archive of newstion, it concentrates exclusively on small business financial services; and from the Global Affinity Fi-affinity and partnership marketing travel insurance and assistance. nance Club please visitstrategy. www.finaccord.com/afi Our international network of consult-Affinity and partnership marketing ants is able to deliver informationstrategy is an important component of quickly and accurately across a rangegeneral distribution strategy for a ma- of countries worldwide, basing re-jority of large banks and insurance search projects on robust data andcompanies serving consumers and knowledge rather than suppositionsmall businesses as successful partner- and theory.ships potentially allow them to accessgroups of customers that they cannot © Finaccord Ltd., 2012always reach by themselves. Registered in London No. 4542931 The Office FarringdonIf you would like to join Finaccord’s 24 Greville StreetGlobal Affinity Finance Club, contact London,us by telephone or send us an email to EC1N 8SSinfo@finaccord.com. Thereafter, eachquarter, we will send you a link to the Phone: +44 20 3178 2556page of our website with fresh news Fax: +44 20 7198 7902 Email: info@finaccord.comand future editions of this document. www.finaccord.com Finaccord’s latest published reports include:  Non-Life Bancassurance in Europe: Accident and Health Insurance GBP 2,995  Life Bancassurance in Europe: Protection-Related Life Insurance GBP 2,995  Non-Life Bancassurance in Europe: Motor and Household Insurance GBP 2,995  Bancassurance in Europe: Life, Non-Life and Creditor Insurance (20 single country reports) GBP 795 each  Life Bancassurance in Europe: Investment-Related Life Insurance and Retirement Savings GBP 2,995  Creditor Insurance in Northern, Central and Eastern Europe GBP 2,495  Creditor Insurance in Southern and Western Europe GBP 2,495  Fleet Insurance and Assistance in Europe GBP 2,995 www.finaccord.com 21