Global Affinity Finance Club Autumn 2013

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The Global Affinity Finance Club is Finaccord’s quarterly newsletter about affinity financial services worldwide.

Through this, Finaccord publishes top line information about key strategic developments in affinity and partnership marketing of financial services around the world, segmented between affinity insurance news, bancassurance news and affinity banking news.

This service differs from that provided by other research companies because its focus is genuinely global, often translating news that only appears in languages other than English. In addition, it concentrates exclusively on affinity and partnership marketing strategy.

Affinity and partnership marketing strategy is an important component of general distribution strategy for a majority of large banks and insurance companies serving consumers and small businesses as successful partnerships potentially allow them to access groups of customers that they cannot always reach by themselves.

If you would like to join Finaccord’s Global Affinity Finance Club, contact us by telephone or send us an email to info@finaccord.com. Thereafter, each quarter, we will send you a link to the page of our website with fresh news and future editions of this document.

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Global Affinity Finance Club Autumn 2013

  1. 1. AFFINITY INSURANCE BANCASSURANCE AUTUMN 2013 Global Affinity AFFINITY BANKING Finance Club Finaccord’s newsletter about affinity financial services worldwide Welcome back to your Club! 2014 begins with the global economy in seemingly better shape than at any time since the boom years of the mid-2000s, albeit some European economies remain troubled. Moreover, as reflected in this latest edition of the Global Affinity Finance Club, the opportunities for financial services companies to create strategic partnerships are becoming ever more international in nature. Notable initiatives tracked in the final quarter of 2013 included two in Vietnamese bancassurance (BNP Paribas Cardif with Saigon Bank and MetLife with BIDV), one in Chinese automotive finance (BNP Paribas Personal Finance with Geely), one in Spanish consumer finance (Santander with El Corte Inglés) and one in UK retail banking (Barclays with Asda). In addition, a number of relationships have been created or expanded with the aim of developing new business across multiple countries. Such deals include those of Affinion with Transamerica Life, Allianz Global Assistance with Ten Lifestyle management, Allianz with Ford, American Express with Equity Bank, AXA with Daimler, and MasterCard with NTT DOCOMO. Thus, whether these deals are directly or indirectly relevant to your own particular sphere of interest, there is plenty here to stimulate more general strategic thinking about how different payment, banking, insurance and assistance products can be brought to market. With best regards, Alan Leach Director aleach@finaccord.com For our published reports, news and more please visit www.finaccord.com
  2. 2. Global Affinity Finance Club Table of contents Affinity Insurance News ASSISTANCE 4 Allianz Global Assistance unveils partnership with Ten Lifestyle Management 4 Allianz and Ford form technical partnership on a pan-European basis 4 Europ Assistance launches mobile road assistance app for AssurOne Group customers 4 HomeServe to offer warranty plans in conjunction with Charleston Water System 4 COMMERCIAL INSURANCE 4 AXA secures relationship with Spanish association helping young entrepreneurs 4 Liberty Seguros secures golf-related commercial affinity deal in Spain 5 CREDITOR INSURANCE 5 Nationale Suisse develops mortgage and rent insurance for customers of homegate.ch 5 HEALTH INSURANCE 5 DKV and Zurich extend their distribution agreement for health insurance up to end 2018 5 LIFE INSURANCE 6 Affinion selects Transamerica Life as primary insurance partner in Latin America 6 Liberty Seguros starts co-operating for motorcycle cover with Argentine consumer finance firms 6 GENERAL 9 NICHE INSURANCE 6 The Hartford secures three-year extension of AARP motor and household insurance program 9 DAS renews legal protection partnership with Towergate Insurance 6 Swedish insurer prolongs agreement with affinity insurance intermediary 9 PRODUCT INSURANCE / WARRANTIES 6 Bancassurance News 9 Japanese telecoms group acquires majority stake in Brightstar 6 The Warranty Group extends established business relationship with NEW in the US... 7 ... and agrees new partnership with Peruvian consumer electronics chain 7 CarGarantie strengthens extended warranty links with three automotive brands in Central Europe... 7 ... plus Harley-Davidson in Hungary, Poland and Slovakia 7 Europ Assistance partners for used car warranties with Opel in Portugal 8 LIFE INSURANCE 9 MetLife enters into bancassurance joint venture with Vietnamese bank 9 BNP Paribas Cardif joint venture in Vietnam wins new bancassurance relationship 10 JC Flowers takes control of Italian bancassurance company 10 BNP Paribas Cardif extends partnership with Hachijuni Bank to cancer insurance in Japan... 10 ... while Manulife ties with Nikko Securities for unit-linked annuity insurance in the same country 11 Solid Försäkringar links with Swedish jewellery chain 8 PKO Bank Polski acquires Nordea's Polish operations including a captive life insurer 11 TRAVEL INSURANCE 8 MOTOR INSURANCE 11 Mondial Assistance renews 20 year-old travel insurance deal with Thomas Cook... 8 Bank of Ireland bolsters motor insurance proposition in partnership with RSA 11 MOTOR INSURANCE 6 ...and forges a new partnership with Groupe Pierre & Vacances – Center Parcs 8 Daimler reveals success of manufacturerbranded motor insurance underwritten by AXA 6 HanseMerkur enters into travel insurance partnership with German cruise specialist 8 AEGON-CNOOC initiates online distribution with Chinese shopping mall 6 GENERAL 11 CIBC upgrades travel insurance associated with Aventura loyalty program 8 www.finaccord.com Achmea extends bancassurance relationship with Rabobank to Australia 11 Moderna Försäkringar establishes new non-life bancassurance deal with Danske Bank 12 2
  3. 3. Global Affinity Finance Club Affinity Banking News 12 AUTOMOTIVE FINANCE 12 BNL provides finance to organisation working on behalf of Italian pharmacies 14 Bradesco and Claro target unbanked consumers in Brazil with mobile wallet 16 Geely Automobile and BNP Paribas Personal Finance collaborate in Chinese automotive finance 12 Bradesco ties with Brazilian trade association representing franchise-based businesses 14 TD Bank and PC Financial partner to create Canada's first open mobile wallet 17 GM buys back former captive business from Ally Financial in Brazil... 12 INTERNATIONAL REMITTANCES 14 PAYMENT CARD AND ISSUANCE 17 ...while Ally Financial extends US operations by working with BraunAbility 12 Western Union renews money transfer contract with La Banque Postale 14 Capital One wins consumer finance mandate with power sports product manufacturer 12 MoneyGram gains international remittance mandate with Denizbank 14 BANK-TO-BANK 12 PARTNERSHIPS Scotiabank and Bank of Beijing collaborate to make China-to-Canada migration easier 12 / DOMESTIC MOBILE / ONLINE PAYMENTS 15 MasterCard and NTT DOCOMO combine brands for mobile credit payment system 15 CO-BRANDED CARDS 13 CommBank rolls out mobile payments solution with MasterCard and Samsung 15 Western Union distributes prepaid card in Italy through 15,000 lottery operator outlets 13 NBE, EBC, Fawry and MasterCard link for new mobile payment solution in Egypt 15 Wirecard Card Solutions links with cadooz for co-branded prepaid cards 13 Orange Cash launched by Orange with Visa Europe and Wirecard Card Solutions 15 Capital One refreshes co-branded and loyalty propositions with GM 13 CONSUMER FINANCE 13 Santander acquires equity stake in Iberian retail group's financial services unit 13 CaixaBank ties with Telefónica for Spanish consumer finance joint venture 14 Bank of Nanjing and BNP Paribas Personal Finance tighten consumer credit relationship 14 Fiditalia creates partnership with provider of 'green' energy solutions 14 COMMERCIAL BANKING 14 Boku unveils new partnerships with Deezer and PaymentPin 15 CaixaBank launches new mobile payment program with Visa and trio of telecoms groups 16 Monitise takes full ownership of AsiaPacific joint venture and announces other agreements 16 Wells Fargo joins Isis mobile payment network 16 Vodafone works with Intesa Sanpaolo and Setefi for contactless POS solutions in Italy 16 www.finaccord.com ACCEPTANCE American Express links with Equity Bank for card issuance in trio of African countries... 17 ... and with U.S. Bank in the US market 17 UnionPay reveals raft of agreements for card issuance and acceptance in multiple countries 17 JCB enters into card-issuing deals in Italy and Vietnam 18 RETAILER BANKING 18 Barclays ties with Asda to trial in-store branches 18 RETAILER CARDS 18 Nakumatt Holdings introduces prepaid MasterCard product in conjunction with two banks 18 Citi Retail Services extends consumer finance relationship with both RadioShack... 18 ... and Staples 19 GE Capital Retail Bank creates privatelabel credit card for mattress retailer... 19 ... and extends relationship in the same field with JCPenney 19 Wirecard Bank to manage new gift card scheme for Lidl in Germany 19 3
  4. 4. Global Affinity Finance Club Affinity Insurance ASSISTANCE that the exact nature of the partnership will evolve over time in response to customers’ needs. Allianz Global Assistance unveils partnership with Ten Lifestyle Management Europ Assistance launches mobile road assistance app for AssurOne Group customers With a focus on the Asia-Pacific region, Allianz Global Assistance (AGA) and Ten Group, a specialist provider of concierge services, have announced the signing of a new partnership which aims to create a premium global assistance and lifestyle concierge service. This deal aims to strengthen AGA’s competitive position and to create an additional channel that will help it to win distribution mandates with financial institutions in the AsiaPacific market. Furthermore, both companies hope to gain from increased cross-selling opportunities to both existing and new clients. In France, Europ Assistance has launched a mobile assistance app for AssurOne and Netvox customers, both of which are part of AssurOne Group, a broker specialising in the distribution and management of online insurance solutions. The app is available for free from both Google Play and the iTunes App Store, and it makes it possible for users to request assistance and to be put in direct contact with an operator so as to rapidly trigger roadside assistance at their precise location, thanks to GPS, telematics and other mobile technology. The new app also has a number of other features, including a schedule for staying up-to-date on vehicle servicing, the emergency numbers for over 180 countries, basic firstaid methods and places of interest in the vicinity of the vehicle (plus their websites, phone numbers, opening times, photos and user reviews). Affinity Insurance News Allianz and Ford form technical partnership on a pan-European basis Allianz and Ford have struck up a new partnership in what is referred to by the two companies as 'integrated mobility' which aims at enhancing the mobility and safety of Ford car buyers. The agreement includes the involvement of engineers from both Ford and the Allianz Zentrum für Technik (AZT) in areas such as driving assistance systems and electro-mobility. The partners have stated that they intend to improve both the safety of Ford passenger cars as well to optimise insurance solutions for customers. They also expect that the relationship will create added value for Ford dealers across Europe and HomeServe to offer warranty plans in conjunction with Charleston Water System In the US, home emergency assistance provider HomeServe has signed a distribution partnership with Charleston Water System (CWS), under which optional warranty plans for homeowners’ exterior water and sewerage pipes will be offered to the latter firm's customers, thereby offering them pro- www.finaccord.com tection against water and sewer line blocks, breaks and leaks. CWS is a public water and sewerage utility that provides clean water services to more than 110,000 homes and businesses, and waste water services to more than 50,000 homes and businesses. HomeServe, which serves around 1.4 million homeowners in North America alone, already has approximately 1,000 personal customers in the Charleston area, although this new partnership is likely to significantly increase that number in the coming years. —————————————-COMMERCIAL INSURANCE AXA secures relationship with Spanish association helping young entrepreneurs In Spain, AXA and the Confederación Española de Asociaciones de Jóvenes (CEAJE), a confederation of associations helping young entrepreneurs, have entered into an agreement to collaborate for an initial period of one year. The deal entails a number of actions including the launch of 'Start up' as a new insurance product aimed at start-up businesses in technology-related areas and other innovative sectors. This covers risks relevant to these companies such as liability for data protection and virus attacks, plus professional indemnity. CEAJE represents more than 21,000 enterprises run by entrepreneurs aged under 40 and is itself composed of both provincial associations and regional federations. 4
  5. 5. Global Affinity Finance Club Affinity Insurance Liberty Seguros secures golfrelated commercial affinity deal in Spain Also in Spain, Liberty Seguros has begun co-operating with the Asociación de Directores y Gerentes de Clubes y Campos de Golf (AEGG), a trade association for golf course managers, for the provision of insurance policies designed for this customer group and made available on advantageous terms. In addition, the insurer will also act as co-sponsor of the annual golf championship organised by the AEGG. —————————————-CREDITOR INSURANCE Nationale Suisse develops mortgage and rent insurance for customers of homegate.ch Nationale Suisse and homegate.ch, Switzerland’s largest online real estate agent, have reached an agreement for the distribution of mortgage and rent insurance to the customers of homegate.ch. The insurance is aimed at tenants and mortgage borrowers who undergo a period of unemployment or work incapacity and are unable to pay their rent or continue their mortgage payments. The mortgages offered by homegate.ch are currently provided by Zürcher Kantonalbank. Under the terms of the insurance policy, Nationale Suisse will start making payments after a waiting period of 90 days and will also pay out a fixed sum in the case of the death of the policyholder. Nationale Suisse stated that while Swiss employees are normally paid between 70% and 80% of their previous income in the case of work www.finaccord.com incapacity or unemployment through statutory funds, many may struggle to maintain their lifestyle as housing costs typically constitute a third of regular income. —————————————-HEALTH INSURANCE DKV and Zurich extend their distribution agreement for health insurance up to end 2018 In Germany, DKV (the specialist health insurance subsidiary of ERGO) and Zurich have agreed to extend their distribution agreement. Under the terms of the deal, Zurich will continue to distribute DKV’s health insurance products up to the end of December 2018 both through its own agents as well as through its Bonnfinanz subsidiary. The two companies have been 5
  6. 6. Global Affinity Finance Club Affinity Insurance collaborating in this product area since 2004. —————————————-LIFE INSURANCE Affinion selects Transamerica Life as primary insurance partner in Latin America In Latin America, Affinion has announced that that its insurance division, Affinion Benefits Group, has entered into a long-term agreement with Transamerica Life, a subsidiary of AEGON group, thereby making this underwriter a significant new carrier for Affinion's insurance services in the region. —————————————-MOTOR INSURANCE Daimler reveals success of manufacturer-branded motor insurance underwritten by AXA Automotive group Daimler has reported that sales of branded motor insurance underwritten by AXA rose by 78% during 2012 in its retail business. As a result, an existing four-year strategic co-operation agreement has been extended. This has manifested itself through the partnership between the two companies in France, while in Malaysia and Turkey AXA has also won the mandate to underwrite insurance sold by Daimler to buyers of its cars, which include Mercedes-Benz. In addition, Daimler and AXA work together in the field of com- mercial insurance such as cover for manufacturing plants and vehicles in transit, and in pensions and insurance for the Daimler workforce. The financial services arm of Daimler has a number of strategic partners in the field of insurance and also reports having secured a record number of new policies in the first half of 2013 with over 600,000 automotive-related insurance contracts sold worldwide. According to Liberty Seguros, the Argentine market for motorcycles is growing rapidly with one registered for every ten inhabitants and in the months following the launch of its 'Motocover' policy in March 2013, it acquired around 22,000 new policyholders. AEGON-CNOOC initiates online distribution with Chinese shopping mall DAS renews legal protection partnership with Towergate Insurance In China, AEGON-CNOOC, a joint venture between the Netherlands-based AEGON group and CNOOC (a Chinese oil company), has set up a partnership with Tmall.com, one of the largest online malls in the country, to promote motor insurance products. The policies will be sold online and will allow customers to choose a variety of different types of cover. In the UK, legal expenses insurer DAS has extended its longstanding relationship with Towergate Insurance in the form of a new five-year deal. This new contract relates to the legal expenses insurance and emergency assistance business placed by the group – whose brands include the Towergate Underwriting, Towergate Broking, CCV and Broker Network divisions – whilst also creating an opportunity for DAS to expand into other areas in the future if appropriate. Liberty Seguros starts cooperating for motorcycle cover with Argentine consumer finance firms In Argentina, Liberty Seguros has begun working with two consumer finance companies - Efectivo Sí and Tarjeta Shopping - in order to offer customers buying motorcycles on credit a year's worth of motorcycle insurance in the form of its 'Motocover' policy. Distributed via dedicated stands situated at the premises of dealers, the policy can be acquired by owners of all types of motorcycle and incorporates both liability cover and insurance in the event of theft or write-off. www.finaccord.com —————————————-NICHE INSURANCE —————————————-PRODUCT INSURANCE WARRANTIES / Japanese telecoms group acquires majority stake in Brightstar At a cost of USD 1.26 billion, Japanese telecoms and internet firm SoftBank has acquired a 57% stake in Brightstar, a mobile services and hardware distributor that is also active in mobile gadget and phone 6
  7. 7. Global Affinity Finance Club Affinity Insurance insurance through its eSecuritel subsidiary. As part of the transaction, the so-called Buying & Innovation Group, a joint venture between SoftBank, its subsidiary Sprint and Brightstar, will formally become a division of the latter. Additionally, Brightstar will become the exclusive provider of handsets, accessories and other services to certain SoftBank telecoms affiliates. By the close of 2018, SoftBank’s ownership is expected to accrete to 70%. The Warranty Group extends established business relationship with NEW in the US... In the US, The Warranty Group has announced the renewal of its contract with NEW, an Asurion company, by means of which it provides contractual liability insurance coverage, underwriting and actuarial support for several NEW protection plan programs, using its wholly-owned insurance subsidiary Virginia Surety Company. This latest contract renewal extends a business partnership that has been in place for more than 20 years. NEW partners with major retail brands to provide their customers with protection plans and device support for consumer goods including electronic appliances, office products and exercise equipment. ... and agrees new partnership with Peruvian consumer electronics chain Meanwhile, in Peru, The Warranty Group and Tiendas Efe, a leading retailer of consumer electrical products, have signed an agreement for the underwriting and administration of the retailer's device replacement program. Tiendas Efe is a part of Grupo Efe, a holding company comprising Tiendas Efe, Financiera Efectiva, Motocorp and Total Artefactos (La Curacao) with more than 180 stores across the country. Through this new deal, The Warranty Group will provide underwriting and administration services for the replacement of selected electronic goods including tablets, games consoles, printers and mobile phones. CarGarantie strengthens extended warranty links with three automotive brands in Central Europe... International automotive warranty specialist CarGarantie has signed three new agreements with automotive manufacturer brands in Central Europe. In Austria, CarGarantie has been the official warranty partner of the Suzuki brand since 2005, offering extended warranties on new cars. This has now been extended to the new SX4 SCross model, for which an ex- www.finaccord.com tended warranty is included with the purchase of a new vehicle, valid for 24 months or 150,000 kilometres from first registration. This carries on from the three-year factory warranty and is included automatically at no extra cost to the car buyer. Meanwhile, in Hungary, Isuzu and CarGarantie have signed a framework agreement in the new vehicle segment. This includes an extended warranty for the Isuzu D-Max model valid for two years after the end of the manufacturer's factory warranty. This new extended warranty can be bought for either 12 months / 120,000 kilometres or for 24 months / 150,000 kilometres. Finally, in Slovenia, Mercedes-Benz and CarGarantie have signed a framework agreement for new car extended warranties, adding to existing partnerships between the two firms in Austria, Bulgaria, Germany, Luxembourg, Hungary, Poland, Romania and Switzerland. The extended warranty comes into force after the expiration of the factory warranty provided by the importer; it applies to all MercedesBenz brand passenger cars and can be bought for either 12 or 24 months. 7
  8. 8. Global Affinity Finance Club Affinity Insurance ... plus Harley-Davidson in Hungary, Poland and Slovakia Turning to motorcycles, CarGarantie has increased the number of countries covered by an agreement with Harley-Davidson for extended warranties by adding Hungary, Poland and Slovakia to its existing deals in Austria, Belgium, France, Germany, Italy, Luxembourg, the Netherlands, Portugal, Spain and Switzerland. This new agreement is for new and used Harley-Davidson and Buell motorcycles, providing warranties for up to 36 months with new motorcycles and 12 or 24 months for used ones. Europ Assistance partners for used car warranties with Opel in Portugal Also in the field of extended warranties in the automotive sector, Europ Assistance has established a distribution partnership with Opel in Portugal that aims at providing extended warranties for the manufacturer brand's approved used car program. The program is designed for used and nearly-new cars that have an original manufacturer’s warranty and that are no older than seven years, or those with no more that 150,000 kilometres of mileage, and the new warranties can last between three months and two years. Solid Försäkringar links with Swedish jewellery chain In Sweden, Solid Försäkringar has announced a partnership with Adorn, a leading jewellery chain in the country with around 70 stores. The underwriter will provide a range of insurance solutions related to the purchase of rings, necklaces, bracelets and watches with regards to risks that are not covered under standard product warranties —————————————-TRAVEL INSURANCE Mondial Assistance renews 20 year-old travel insurance deal with Thomas Cook... In France, tour operator Thomas Cook has reaffirmed its longstanding relationship with Mondial Assistance (now rebranded as Allianz Global Assistance in several markets) for the provision of travel insurance. Under this arrangement, Thomas Cook's clients are able to easily obtain a range of travel policies (including trip cancellation, winter sports and comprehensive cover) either via travel agents or online, and they can then manage their policies and any claims via a mobile app (although this is only available for iPhone users at the time of publication). At the European level, more than 22 million customers travel with Thomas Cook every year, and the group is one of the largest foreign and domestic holiday travel suppliers to the French market, where its products are available through more than 600 travel agencies across the country. ...and forges a new partnership with Groupe Pierre & Vacances – Center Parcs Mondial Assistance has also been www.finaccord.com named as the travel insurance partner for Groupe Pierre & Vacances – Center Parcs, which operates a wide range of self-catering complexes, holiday villages and family resorts across Europe, with a strong emphasis on activity holidays designed for families. The group was founded in 1967 and welcomes around 7.5 million clients to more than 50,000 apartments and houses across Europe each year, through brands such as Pierre & Vacances, Maeva, Center Parcs, Aparthotels Adagio and Sunparks. The travel insurance offering will be tailored towards cover for families, and can be adapted to take account of the particular activities being undertaken during the stay, such as winter sports. HanseMerkur enters into travel insurance partnership with German cruise specialist In Germany, HanseMerkur has announced a new long-term agreement with nicko tours, a leading travel operator, to distribute its travel health and travel inconvenience insurance. nicko tours specialises in organising cruises for senior citizens and expected revenues of around EUR 116 million in 2013. CIBC upgrades travel insurance associated with Aventura loyalty program Canadian bank CIBC has announced a series of enhancements to its Aventura loyalty program, making it easier for cardholders to earn points and turn them into flights, and providing trip cancella- 8
  9. 9. Global Affinity Finance Club Bancassurance tion cover to sit alongside the program's existing trip interruption and travel medical insurance benefits, all of which are underwritten by RSA. The new scheme will allow consumers to redeem their Aventura points for flights with any airline, to access every seat on the plane, and also to pay for flight taxes and fees with their points. The program also features a special bonus of up to 30,000 points for new members, and short-haul flights will be available for as little as 10,000 points. GENERAL ment with AARP (standing originally for the American Association of Retired Persons) to offer household and motor insurance products to the organisation's members. With the three-year extension, The Hartford's relationship with AARP now runs through to the end of 2022. This marks the fourth extension since the program's inception in 1984. Marketed as The AARP Automobile and Homeowners Insurance Program, The Hartford offers household and motor cover to AARP members, as well as other personal insurance products such as personal umbrella insurance, and coverage for motor homes and offroad recreational vehicles. The Hartford secures three-year extension of AARP motor and household insurance program Swedish insurer prolongs agreement with affinity insurance intermediary In the US, The Hartford has announced an extension of its agree- In Sweden, Moderna Försäkringar, a subsidiary of Tryg, has extended its partnership with Akademiker- —————————————-- www.finaccord.com försäkring, an affinity insurance intermediary owned by Akademikertjänst, a member services company that is itself owned by six trade unions for university graduates, including those serving engineers and pharmacists. In fact, this relationship has been in place since 2003 and the latest extension means that it will last at least until 2016. —————————————-- Bancassurance News LIFE INSURANCE MetLife enters into bancassurance joint venture with Vietnamese bank In Vietnam, MetLife has entered into an agreement with Bank for Investment and Development of Vietnam (BIDV) to establish a new 9
  10. 10. Global Affinity Finance Club Bancassurance life insurance joint venture that will become operational in 2014. This initiative follows the Memorandum of Understanding (MOU) that was previously signed by the parties in July 2013 and is intended to deliver on a key component of MetLife’s strategy: expanding its presence in emerging markets. At the same time, the joint venture also assists with BIDV’s further participation in the life insurance market. MetLife will own a 60% stake in the company with BIDV and BIC holding the remaining 40% between them. With an initial focus on life and health insurance products, an exclusive bancassurance distribution agreement has also been put in place between the new joint venture company and BIDV, which has over 600 outlets in Vietnam. BNP Paribas Cardif joint venture in Vietnam wins new bancassurance relationship Also in Vietnam, Vietcombank Cardif Life Insurance, a joint venture of BNP Paribas Cardif and Vietcombank, has signed a bancassurance partnership agreement with Saigon Commercial Bank for the distribution of savings and protection insurance products through the bank's network of more than 230 branches. The first product will be a deposit protection policy to insure the bank's clients against death and disability. Saigon Commercial Bank ranks among the top five joint-stock commercial banks in Vietnam. ment to sell its entire 39% stake in Eurovita Assicurazioni to JC Flowers, a private equity firm, for a consideration of EUR 33 million. JC Flowers will also acquire the residual 61% share of this company from Banco Popolare, the other co -owner. Eurovita is a life insurer which distributes guaranteed savings products through a network of local and regional Italian banks, contributing GBP 6 million to Aviva’s profit after minorities in the first half of 2013. According to Aviva, the sale represents further progress in its strategy to focus its Italian business on more profitable, capital-efficient products. JC Flowers takes control of Italian bancassurance company BNP Paribas Cardif extends partnership with Hachijuni Bank to cancer insurance in Japan... In Italy, Aviva has disclosed that it has reached a conditional agree- In Japan, BNP Paribas Cardif has extended its distribution partner- www.finaccord.com 10
  11. 11. Global Affinity Finance Club Bancassurance ship with Hachijuni Bank, a local bank in the Nagano Prefecture. As a result, the bank will distribute the underwriter’s cancer insurance product and it will also be possible for mortgage customers to take out cover for this risk. ... while Manulife ties with Nikko Securities for unit-linked annuity insurance in the same country Also in Japan, Manulife has announced that it will commence sales nationwide of a new unitlinked annuity insurance product known as 'ManuDream' through Nikko Securities. In advance of the commencement of sales, Nikko Securities will launch a campaign to introduce and explain the product’s features to customers. PKO Bank Polski acquires Nordea's Polish operations including a captive life insurer In Poland, in order to meet its financial targets and in line with its strategy to concentrate on its core markets, Nordea has decided to divest its local banking, finance and life insurance operations, namely Nordea Bank Polska, Nordea Finance Polska and Nordea Polska Towarzystwo Ubezpieczen na Zycie, to PKO Bank Polski for EUR 694 million. It is expected that PKO Bank Polski will use its newly -acquired life insurance company as the basis for a new bancassurance strategy that includes an increased use of captive underwriters. —————————————-MOTOR INSURANCE Bank of Ireland bolsters motor insurance proposition in partnership with RSA In Ireland, the insurance broking arm of Bank of Ireland has launched two new motor insurance products, known as 'Popular' and 'Prestige', which offer a discount of 20% for existing customers and a further 5% for clients who also have household cover through the bank. The new motor insurance policies are being underwritten by RSA and include monthly payment plans with no fees or charges, breakdown assistance in Ireland, www.finaccord.com third party and unlimited audio cover plus cover within EU countries for up to 45 days. Moreover, the higher value 'Prestige' product incorporates no claims discount protection, windscreen cover, new car replacement, personal belongings cover, replacement locks, car hire and personal protection for death and injury. —————————————-GENERAL Achmea extends bancassurance relationship with Rabobank to Australia Netherlands-based insurance company Achmea has extended its bancassurance partnership with Rabobank to a new overseas territory. Specifically, Achmea has acquired a licence from the relevant regulatory authorities to sell insurance in Australia under the Achmea Australia brand name. Its Australian branch will focus on offering insurance for the agricultural sector to be sold predominantly to the clients of Rabobank in Australia. 11
  12. 12. Global Affinity Finance Club Affinity Banking Moderna Försäkringar establishes new non-life bancassurance deal with Danske Bank In Sweden, Moderna Försäkringar has entered into a strategic partnership with Danske Bank for the sale of non-life insurance products. The agreement will be launched as of spring 2014 and is scheduled to last for at least three years. In addition to Moderna’s core non-life insurance products, Danske Bank’s customers will also have the opportunity to take out cover for classic cars, motorcycles and boats through the underwriter's subsidiary brands Atlantica and Bilsport & MC. —————————————-- Affinity Banking News AUTOMOTIVE FINANCE Geely Automobile and BNP Paribas Personal Finance collaborate in Chinese automotive finance In China, Geely Automobile and BNP Paribas Personal Finance have entered into an agreement to establish a jointly-owned company for automotive finance. The registered capital of the company will be RMB 900 million (about EUR 108 million) of which RMB 720 million (EUR 86.4 million) will be provided by Geely Automobile in return for an 80% stake in the company. BNP Paribas Personal Finance will provide RMB 180 million (EUR 21.6 million) for the remaining stake. This agreement is subject to approval by the relevant authorities. The company will pro- vide financial products and services in China including wholesale finance for car dealers for the purchase of vehicles and operating facilities as well as retail finance for end-customers. GM buys back former captive business from Ally Financial in Brazil... With the purchase of Ally Financial's Brazilian operations for approximately USD 611 million, automotive group GM continues to buy back some of the automotive finance operations that it was forced to sell as a part of its restructuring in 2008. The sale of Ally's international operations is now around 90% complete, with approximately USD 8.3 billion having been raised from the process so far, leaving Ally focused on the US market. ...while Ally Financial extends US operations by working with BraunAbility Meanwhile, in the US, Ally Financial has become a finance provider for BraunAbility, a leading manufacturer of wheelchair accessible vehicles and wheelchair lifts worldwide. This enables it to receive finance applications from BraunAbility’s 200 distributors across the US. Capital One wins consumer finance mandate with power sports product manufacturer In the US, Capital One has signed a three-year agreement with Bombardier Recreational Products (BRP) for the provision of consumer fi- www.finaccord.com nance plans to BRP's customers. BRP manufactures and distributes various types of power sports product, including Ski Doo and Lynx snowmobiles, Sea-Doo watercraft, Can-Am all-terrain vehicles, side-by-side vehicles and Spyder roadsters. The new deal relates to the provision of revolving finance contracts on such products when sold through BRP dealers across the US, and the financing can also be used to pay for both accessories and vehicle servicing. —————————————-BANK-TO-BANK PARTNERSHIPS Scotiabank and Bank of Beijing collaborate to make China-toCanada migration easier Scotiabank has reached an agreement with the Bank of Beijing to help Chinese immigrants, students and foreign workers moving to Canada to begin their financial services transition before leaving China. Known as the Scotiabank StartRight program, this initiative means that individuals in these categories are able to open a bank account and apply for a credit card with Scotiabank through approximately 20 participating Bank of Beijing branches in China. Once in Canada, customers can then visit their local Scotiabank branch to activate their account, receive their credit card and take advantage of additional benefits included in the StartRight program. Note that Scotiabank already has similar arrangements with Bank of Xi'an and China Everbright Bank, meaning that this program is already avail- 12
  13. 13. Global Affinity Finance Club Affinity Banking able at more than 200 bank branches in 44 cities across China. —————————————-CO-BRANDED CARDS Western Union distributes prepaid card in Italy through 15,000 lottery operator outlets In Italy, Western Union has joined forces with MasterCard and Lottomatica, a gaming company and lottery operator, to launch the My WU reloadable prepaid card. Lottomatica is the first company in Europe to join the Global Share platform which enables Western Union to introduce new storedvalue solutions in markets around the world by joining forces with local companies. The My WU prepaid card is designed to serve the more than 4 million registered migrant workers in Italy who need convenient access to financial services and is available at around 15,000 Lottomatica locations throughout the country and online via Western Union's own website. Customers can also reload their prepaid cards at more than 22,000 locations and over 10,000 ATMs across Italy. In effect, the card means that customers in Italy who do not have bank accounts can send money transfers, receive direct deposits from their employers and make retail purchases in both shops and online outlets that accept MasterCard as well as withdraw money from ATMs across the country. Furthermore, cardholders are also able to fund Western Union money transfer transactions using their cards at Lottomatica locations where the service is available while also benefiting Western Union’s own consumer loyalty program. Wirecard Card Solutions links with cadooz for co-branded prepaid cards Wirecard Card Solutions and cadooz, a supplier of vouchers, rewards and incentives which is owned by Euronet Worldwide, have issued two prepaid cards (the cadoozCard and cadoozCard plus), both operating on Maestro's network. The cards are designed and marketed as a form of employee reward or benefit, and differ in the range of retailers at which they may be redeemed; the cadooz Card may be used at selected retailers while the cadoozCard plus may be used at any merchant accepting Maestro cards. Moreover, participating companies have the option to cobrand either version. The issuance of both cards has started in Germany and the program will be expanded swiftly to additional European countries. Capital One refreshes cobranded and loyalty propositions with GM In the US, in partnership with MasterCard, Capital One and General Motors (GM) have announced a multi-year extension to their existing co-branded credit card program, plus the launch of a new automotive rewards product linked to the GM Card. This new proposition offers consumers 5% of earnings on their first USD 5,000 worth of net card purchases each year, www.finaccord.com plus 2% on all other purchases. The card carries no annual fee and features no limits on the rewards that consumers can accumulate and redeem towards the purchase or leasing of a new Buick, Cadillac, Chevrolet or GMC vehicle. Furthermore, rewards do not expire over time. Since its launch in 1992, earnings from GM Card loyalty schemes have been redeemed towards the purchase of almost 7 million new GM cars, trucks, SUVs and crossovers. The new proposition will also give holders access to a number of World Elite MasterCard benefits, including trip cancellation cover. —————————————-CONSUMER FINANCE Santander acquires equity stake in Iberian retail group's financial services unit In the Iberian peninsula, Santander and department store chain El Corte Inglés have reached an agreement whereby the banking group's consumer finance company will acquire a 51% equity stake in the retailer's formerly captive finance arm, Financiera El Corte Inglés, subject to approval from the relevant regulatory authorities in Portugal and Spain. Through a due diligence exercise carried out on the basis of the financial statements of Financiera El Corte Inglés as at the end of July 2013, the company was accorded an enterprise value of EUR 415 million. By means of the transaction, Santander strengthens its position in the European market for point-of-sale finance. 13
  14. 14. Global Affinity Finance Club Affinity Banking CaixaBank ties with Telefónica for Spanish consumer finance joint venture Fiditalia creates partnership with provider of 'green' energy solutions Also in Spain, Telefónica Consumer Finance has been unveiled as a joint venture between Telefónica and CaixaBank. This represents an extension of an agreement first made in 2012 between the two companies, under which CaixaBank, via its FinConsum subsidiary, allowed Movistar customers to pay for mobile devices in instalments over 24 months. The financing process is set to be especially streamlined for CaixaBank's 13.8 million customers in Spain, who will only need to provide their payment card to secure financing. Telefónica Consumer Finance is expected to be fully operational by the first quarter of 2014. In Italy, Fiditalia (a consumer finance company belonging to Société Générale) has tied with Joannes for the provision of finance related to the acquisition of the latter company's 'green' energy solutions which include heating systems and solar panels. Customers investing in these solutions are currently able to benefit from tax breaks. Bank of Nanjing and BNP Paribas Personal Finance tighten consumer credit relationship In Italy, BNL and Farmafidi, a notfor-profit organisation that specialises in arranging finance on behalf of pharmacies, have established an agreement by means of which the former, which is owned by BNP Paribas, will provide the latter with a fund of EUR 8 million. This will be used to support the activity of around 16,000 pharmacies that belong to Farmafidi. In China, BNP Paribas Personal Finance has strengthened its relationship with Bank of Nanjing through a co-operation agreement focused on consumer credit. The two partners have been working together since October 2005, and in June 2010 they created a consumer finance and credit card centre (known as the CFCCC) within the bank. Development of this centre is overseen by a regional division of BNP Paribas Personal Finance which brings together its international consumer credit expertise and its alliances in China, Morocco, Poland, Serbia, Tunisia, Turkey and Ukraine. —————————————-COMMERCIAL BANKING BNL provides finance to organisation working on behalf of Italian pharmacies Bradesco ties with Brazilian trade association representing franchise-based businesses In Brazil, banking group Bradesco has committed a fund worth around USD 300 million to the Associação Brasileira de Franchising (ABF), a trade association representing franchise-based businesses. In addition to the provision of micro-credits from this fund, www.finaccord.com Bradesco is also providing other financial products including overdrafts to cover seasonal payment flows and the governmentsponsored BNDES credit card which incorporates finance for up to 48 months. —————————————-INTERNATIONAL / DOMESTIC REMITTANCES Western Union renews money transfer contract with La Banque Postale In France, payments specialist Western Union has renewed its long-term partnership with La Banque Postale, the banking subsidiary of La Poste group, the main operator of postal services in the country. Through this contract renewal, Western Union will continue to provide money transfer and remittance services through the branches of La Banque Postale throughout France, an arrangement that has been in place since 1996. MoneyGram gains international remittance mandate with Denizbank In a comparable deal in Turkey, Denizbank (a subsidiary of Sberbank) has entered into a relationship with MoneyGram for the provision of money transfer services. Specifically, the bank will offer MoneyGram's services in this field. —————————————-- 14
  15. 15. Global Affinity Finance Club Affinity Banking MOBILE / ONLINE PAYMENTS MasterCard and NTT DOCOMO combine brands for mobile credit payment system MasterCard and telecoms group NTT DOCOMO have announced a deal to launch payment services carrying the former company's PayPass brand and the latter's iD logo via DOCOMO's mobile credit payment system. This initiative opens up some 1.2 million MasterCard PayPass acceptance locations in over 50 countries to iD users from the start of February 2014. Specifically, the services will be available to DOCOMO subscribers using smartphones equipped with a contactless chip for mobile phones with wallet functions (so-called Osaifu-Keitai) via NFC technology. Existing iD users will be able to simply tap their smartphone over a reader device to make payments at MasterCard PayPass affiliate merchants outside Japan using either local currency or yen, eliminating the need to carry cash in an unfamiliar local currency. CommBank rolls out mobile payments solution with MasterCard and Samsung In Australia, CommBank has joined forces with MasterCard and Samsung Electronics to offer customers PayPass payment capabilities via NFC-enabled Samsung Galaxy S4 devices. According to the bank, this offering has been made possible by a convergence of hardware, software and mobile banking technologies which leverages MasterCard's PayPass technol- ogy and Samsung’s global NFC payment infrastructure which processes transactions using the CommBank app on Samsung GALAXY S4 smartphones sold in Australia. The outcome is that CommBank customers with a Samsung GALAXY S4 smartphone are able to make secure 'Tap & Pay' contactless payments at more than 220,000 PayPass contactless terminals across Australia and 1.6 million merchant locations worldwide. NBE, EBC, Fawry and MasterCard link for new mobile payment solution in Egypt In Egypt, in the same of the introduction of the National Bank of Egypt (NBE), the Egyptian Banks Company (EBC) and telecoms group Fawry have announced the launch in partnership with MasterCard of 'Phone Cash' as a new mobile payment solution. This product is available to both banked and unbanked customers across Egypt who are able to use the service to send money, pay phone bills, load credit to prepaid phones, make donations and reserve airline tickets among the wide range of services offered by Fawry. It can also be used to pay for goods and services at several merchants in Egypt and enables users to make e-commerce transactions around the world. In fact, the 'Phone Cash' service operates independently from the network of any specific mobile company, making NBE the first bank in Egypt or the wider Middle East to provide such a facility. Consumers can download the 'Phone Cash' application on any mobile handset as an e-wallet that www.finaccord.com can be recharged easily with money from any Fawry outlet. NBE customers can also link their MasterCard cards to this application to enable money transfers from their bank accounts to recharge the balance of their e-wallets. Orange Cash launched by Orange with Visa Europe and Wirecard Card Solutions In France, Visa Europe has joined forces with Orange and Wirecard Card Solutions to launch Orange Cash with the objective of accelerating awareness and everyday usage of mobile contactless payments in France. The first prepaid product of its type to be launched in France, Orange Cash will enable Orange customers who have an NFC-enabled smartphone to pay for goods and services using their device. This is being facilitated by the fact that the number of contactless payment terminals in France increased by 50% in the six months to September 2013 alone. Orange customers will be able to download the Orange Cash application, load funds onto their Orange Cash prepaid account with their debit, credit or prepaid card, and start making contactless purchases right away. Orange Cash will be made available to Orange customers in Strasbourg and Caen in early 2014, ahead of a nationwide roll-out in the second quarter of the year. Boku unveils new partnerships with Deezer and PaymentPin Mobile payments firm Boku has announced two separate agreements. In Germany, customers of 15
  16. 16. Global Affinity Finance Club Affinity Banking streaming music service Deezer will be able to subscribe to this service and pay their bills using only their mobile numbers, with the charges attached directly to their monthly mobile bill. Boku has also announced a partnership with PaymentPin, a Montreal-based mcommerce software provider specialising in micro-payments and mobile payment processing. CaixaBank launches new mobile payment program with Visa and trio of telecoms groups In Spain, banking group CaixaBank has announced the launch of a new mobile payment scheme with partners including Orange, Telefónica and Vodafone as well as Visa Europe. The program will allow customers to store all their cards on their mobile devices, and use them to make purchases at retailers and other merchants fitted with compatible contactless POS terminals anywhere in the world. The three mobile networks involved represent 80% of mobile phone consumers in Spain and the deal will allow customers to link any card taken out through CaixaBank to their handset. The program is thought to be the largest in Europe involving mobile-based NFC payments. Monitise takes full ownership of Asia-Pacific joint venture and announces other agreements Mobile payment firm Monitise has announced an agreement to acquire full ownership of Monitise Asia Pacific, its joint venture with Hong Kong-based investment group First Eastern. Following the transaction, Monitise will assume complete control of Monitise Asia Pacific’s 49% stake in its Indonesian joint venture with PT Astra Graphia Information Technology. Meanwhile, in the US, Monitise and U.S. Bank have announced an agreement which will see Monitise providing support for a new mobile payment scheme offered by the bank on behalf of selected merchants which will allow secure purchases and payments to be made via mobile handsets. Separately, Monitise has announced that it has continued to expand its Monitise Commerce Network, which offers mobile wallet functionality. New partners in the network include Rewards Now, offering loyalty and rewards programs, and Acculynk, which facilitates secure mobile transactions. These partnerships follow other deals with Blackhawk Network for mobile gift card purchasing, and with e -commerce provider Venda. Wells Fargo joins Isis mobile payment network In the US, Wells Fargo has announced that it will become an active participant in the Isis mcommerce joint venture created by AT&T Mobility, T-Mobile USA and Verizon Wireless. In the first phase of the agreement, consumers with Wells Fargo Visa credit cards will be able to load these into the Isis mobile wallet which allows users to make secure payments, to redeem coupons and to collect and redeem loyalty benefits through their mobile handset. www.finaccord.com Vodafone works with Intesa Sanpaolo and Setefi for contactless POS solutions in Italy In Italy, Intesa Sanpaolo, Setefi (a company specialising in electronic payments) and Vodafone have revealed an initiative to boost acceptance of contactless payments. The POS proposition is composed of a new generation smartphone or Vodafone tablet plus Setefi's so-called 'Move and Pay' secure payment solution. Contactless payments are believed to be growing rapidly in Italy but penetration of POS terminals that can accept such payments lies at around 26% of merchants and is, therefore, well below the average of about 50% for other major European countries. However, a new law that comes into force in January 2014 (known as 'Decreto Sviluppo bis') will provide a significant boost to the sector as all companies of a certain size will be compelled to offer electronic payment options to their customers. Bradesco and Claro target unbanked consumers in Brazil with mobile wallet In Brazil, MPO (a mobile payment joint venture of banking group Bradesco and mobile operator Claro), has launched My Money Claro, a pilot mobile payment project that will initially be available in the cities of Belford Roxo, Sao Joao de Meriti, and Duque de Caxias, in Rio de Janeiro, as well as in Goiania. In effect, this is a prepaid mobile wallet that allows users to pay bills and make purchases as well as to make transfers and cash withdrawals. According to Claro, 16
  17. 17. Global Affinity Finance Club Affinity Banking the focus of the product is the approximately 48% of Brazil's population with no bank account. TD Bank and PC Financial partner to create Canada's first open mobile wallet In Canada, President's Choice Financial (which is the financial services division of the Loblaw Companies retail group) and TD Bank have announced the creation of Ugo, an open mobile wallet platform that will combine multiple payment and loyalty programs in one secure mobile solution. As part of this collaboration, Loblaw Companies has signed up as the platform's first retail partner and also brings its own PC Plus loyalty program into the wallet. Scheduled to become available in the second quarter of 2014, Ugo will allow users to replace cards from their physical wallet with a simple and secure mobile payment method that automatically links to their loyalty programs. Consumers will be able to both pay and earn and redeem loyalty points in a single tap using their smartphones, thereby offering the kind of functionality that could ultimately replace the need to carry a physical wallet. Ugo will initially allow customers to load their TD Visa, PC Financial MasterCard and PC Plus cards into the wallet, and PC points can be redeemed at Loblaw and other related store locations. The plan is then to add more partners, plus both debit and gift card capabilities and loyalty programs in future. The platform will make use of existing NFC technology to process payments and will initially be available for use on Blackberry and Android NFC-enabled devices. —————————————-PAYMENT CARD ACCEPTANCE AND ISSUANCE American Express links with Equity Bank for card issuance in trio of African countries... In three African countries – Kenya, Tanzania and Uganda – Equity Bank has announced a partnership agreement with American Express through which it will act as an exclusive issuer of American Express card products. These will be launched during the first half of 2014, firstly in Kenya and subsequently in Tanzania and Uganda, subject to regulatory approval. Under the terms of the agreement, Equity Bank will be responsible for all elements related to issuing the cards, including designing the product features, owning the customer relationships and providing billing and credit management. In addition, as an American Express merchant acquirer, Equity Bank will support the expansion of the American Express network by developing and maintaining new merchant relationships in the three countries. The deal constitutes the first time that American Express card products are being made available in these territories. ... and with U.S. Bank in the US market In the US, American Express has disclosed that U.S. Bank will start www.finaccord.com offering credit cards accepted on the American Express network in 2014. In fact, the two partners have already begun working together to design programs for the bank’s customers with the first products likely to become available by autumn 2014. U.S. Bank is a significant card issuer in the US market with a substantial portfolio of cobranded cards in circulation. In addition, it also provides whitelabel card issuing services to many banks and credit unions across the country through its Elan subsidiary. UnionPay reveals raft of agreements for card issuance and acceptance in multiple countries Chinese payments firm UnionPay has revealed several agreements covering the issuance and acceptance of its cards in multiple regions worldwide. First, it has announced the launch of a dual-currency payment card in Hong Kong in co-operation with the local branch of Bank of China and Canton Fair E-commerce. The card can optionally settle payment in RMB or HKD with no currency conversion charges. Meanwhile, the Taiwan Cooperative Bank (TCB) has announced that UnionPay cards with chip authentication (chip and pin) will be accepted at its POS terminals. UnionPay has also revealed three separate announcements for the promotion of UnionPay payment card acceptance among tourism operators. The announcements, covering Australia, the Seychelles and the UK, were concluded with Tourism Western Australia, the 17
  18. 18. Global Affinity Finance Club Affinity Banking Seychelles Tourism Board and the British Tourist Authority, respectively. Moreover, in Italy, UniCredit has agreed to allow all of its POS terminals to accept UnionPay cards. Finally, in China itself, UnionPay has launched a new travel card in conjunction with the China National Tourism Administration, which will extend benefits to cardholders when visiting selected tourist and retail destinations throughout south-east Asia. JCB enters into card-issuing deals in Italy and Vietnam Japan-based payment firm JCB has announced agreements for the expansion of card issuance in two countries. In Vietnam, JCB and Eximbank are collaborating for a new JCB-branded payment card to be issued by the bank. Meanwhile, in Italy, JCB has announced an agreement to promote co-branded cards with Italian debit scheme Consorzio, which operates both the Bancomat and PagoBancomat networks, thereby expanding the issuance of JCB cards in the country. bank branches will open from February 2014 offering customers longer opening hours and more convenient parking. The new branches will be available to all new and existing Barclays customers and the bank's own staff will be on hand to support customers during traditional opening hours. Outside of these hours, the new branches will host new technology to allow customers to carry out regular transactions such as paying in cash and cheques, paying bills, and withdrawing and transferring money. The first such branch will be opened in Asda's Birchwood store in Cheshire in February 2014; store trading hours there are from 8.00 to 22.00, six days a week, and from 10.30 to 16.30 on Sundays. A further three branches will open subsequently at Asda stores in Pudsey in West Yorkshire, North Watford in Hertfordshire and Broadstairs in Kent, with the aim of extending the pilot to eight branches within a few months. —————————————-- Nakumatt Cybercash loyalty smart card and provides a range of benefits and security features. For example, existing smart card customers continue accumulating loyalty points for all purchases made across Nakumatt outlets. Moreover, those with the new card will also earn loyalty points for purchases made with the card at any of over 35.9 million acceptance points, including 2.1 million ATMs, where MasterCard is accepted worldwide. According to Nakumatt, the initiative is part of a wider strategy to provide convenient retail financial solutions such as utility bill settlements, insurance products, cashback, foreign exchange and money transfer services at Nakumatt tills as customers pay for their shopping in both regular and 24hour stores. Over 1 million customers already held the pre-existing loyalty smart card and it is expected that many more will take out the new prepaid card. Citi Retail Services extends consumer finance relationship with both RadioShack... RETAILER CARDS —————————————-RETAILER BANKING Barclays ties with Asda to trial in-store branches In the UK, Barclays has revealed a trial partnership with supermarket chain Asda to offer everyday banking services through bank branches open seven days a week inside selected stores from 2014. Four pilot Nakumatt Holdings introduces prepaid MasterCard product in conjunction with two banks Nakumatt Holdings, a prominent retailing group in East Africa with a total of 40 stores, has unveiled a new contactless prepaid MasterCard card in partnership with Diamond Trust Bank and Kenya Commercial Bank. This new multicurrency card replaces the previous www.finaccord.com Citi Retail Services has announced a long-term agreement to extend a consumer credit relationship with consumer electronics retail specialist RadioShack that has already been in place for nearly 30 years. By means of the agreement, Citi will continue to provide serviceoriented solutions and analytics in support of RadioShack’s targets for growth while the retail brand's customers will continue to enjoy comprehensive financing programs. 18
  19. 19. Global Affinity Finance Club Affinity Banking tomers will continue to enjoy comprehensive financing programs. Moreover, RadioShack will relaunch its private label credit card in the first quarter of 2014 with new branding. This will be one element of a brand refresh that will include revised product offerings, changed store layouts and the planned opening of over 100 new stores. of digital tools including an online consumer centre and mService, a mobile servicing platform available on Android, Blackberry, iOS and Windows devices. ... and extends relationship in the same field with JCPenney Citi Retail Services has also concluded a comparable agreement with Staples, the leading office products retailer, having worked with it already for around 22 years. Through this deal, Citi Retail Services will continue to provide processing services and customer service support for all three of the chain's private-label credit card programs, which meet the separate needs of both consumers and business customers. In addition, GE Capital Retail Bank has revealed the extension of its private-label and dual card credit program with nationwide retail chain JCPenney through to February 2020. First introduced in 1999, the credit card program is available for purchases at any of nearly 1,100 JCPenney stores across the US and Puerto Rico, as well as via the www.jcpenney.com website. Benefits to cardholders include discounts of up to 20% on their first day of using the card to make purchases, the opportunity to earn the retailer's 'rewards certificates' and the ability to pay on credit at any store or online. GE Capital Retail Bank creates private-label credit card for mattress retailer... Wirecard Bank to manage new gift card scheme for Lidl in Germany Also in the field of consumer finance in the US, GE Capital Retail Bank and Sleep Train, a leading retailer of mattresses, have entered into a multi-year agreement to provide a branded private-label credit card program. Specifically, the Sleep Train credit card is being made available for purchases at more than 100 retail locations across California with application possible both at the point of purchase and via the retailer's www.sleeptrain.com web store. Cardholders can also access and manage their account with a suite In Germany, supermarket brand Lidl has commissioned Wirecard Bank to issue and process its new range of gift cards. The cards, available in various denominations, will be available to purchase or redeem at more than 3,300 Lidl branches throughout the country and also via the company's website. The two partners have collaborated for online payment processing since 2008. ... and Staples www.finaccord.com 19
  20. 20. Global Affinity Finance Club Organisations in this issue Acculynk, 16 Achmea, 11 Adagio, 8 Adorn, 8 AEGG, 5 AEGON, 6 AEGON-CNOOC, 6 Affinion, 6 Akademikerförsäkring, 9 Allianz, 4, 8 Allianz Global Assistance, 4, 8 Allianz Zentrum für Technik, 4 Ally Financial, 12 American Association of Retired Persons, 9 American Express, 17 Aparthotels, 8 Asda, 18 Associação Brasileira de Franchising, 14 AssurOne Group, 4 Asurion, 7 AT&T Mobility, 16 Atlantica, 12 Aventura, 8, 9 Aviva, 10 AXA, 4, 6 Bancomat, 18 Bank of Beijing, 12 Bank of China, 17 Bank of Ireland, 11 Bank of Nanjing, 14 Bank of Xi'an, 12 Barclays, 18 BIDV, 9 Bilsport & MC, 12 Blackberry, 17, 19 BNL, 14 BNP Paribas Cardif, 10 BNP Paribas Personal Finance, 12, 14 Boku, 15, 16 Bombardier Recreational Products, 12 Bonnfinanz, 5 Bradesco, 14, 16 BraunAbility, 12 Brightstar, 6, 7 British Tourist Authority, 18 Buell, 8 Buick, 13 Cadillac, 13 cadooz, 13 CaixaBank, 14, 16 Canton Fair E-commerce, 17 Capital One, 12, 13 CarGarantie, 7 CEAJE, 4 Center Parcs, 8 Charleston Water System, 4 Chevrolet, 13 China Everbright Bank, 12 China National Tourism Administration, 18 CIBC, 8 Citi Retail Services, 18, 19 Claro, 16, 17 CommBank, 15 Consorzio, 18 Daimler, 6 Danske Bank, 12 DAS, 6 Deezer, 15, 16 Denizbank, 14 Diamond Trust Bank, 18 DKV, 5 EBC, 15 Efectivo Sí, 6 Egyptian Banks Company, 15 El Corte Inglés, 13 Elan, 17 Equity Bank, 17 Euronet Worldwide, 13 Europ Assistance, 4, 8 Eurovita Assicurazioni, 10 Eximbank, 18 Farmafidi, 14 Fawry, 15 Fiditalia, 14 Financiera Efectiva, 7 First Eastern, 16 Ford, 4 GE Capital Retail Bank, 19 Geely Automobile, 12 GM, 12, 13 Google Play, 4 Groupe Pierre & Vacances, 8 Hachijuni Bank, 10, 11 HanseMerkur, 8 Harley-Davidson, 7, 8 homegate.ch, 5 HomeServe, 4 Intesa Sanpaolo, 16 Isuzu, 7 iTunes, 4 JC Flowers, 10 JCB, 18 JCPenney, 19 Joannes, 14 Kenya Commercial Bank, 18 La Banque Postale, 14 La Poste, 14 Liberty Seguros, 5, 6 Lidl, 19 Loblaw Companies, 17 Lottomatica, 13 Maeva, 8 Manulife, 11 MasterCard, 13, 15, 17, 18 Mercedes-Benz, 6, 7 MetLife, 9, 10 Moderna Försäkringar, 9, 12 Mondial Assistance, 8 MoneyGram, 14 Monitise, 16 Motocorp, 7 Nakumatt Holdings, 18 National Bank of Egypt, 15 Nationale Suisse, 5 Netvox, 4 NEW, 7 Nikko Securities, 11 Nordea, 11 NTT DOCOMO, 15 Opel, 8 Orange, 15, 16 PaymentPin, 15, 16 www.finaccord.com PayPass, 15 PKO Bank Polski, 11 President's Choice Financial, 17 PT Astra Graphia Information Technology, 16 Rabobank, 11 RadioShack, 18, 19 Rewards Now, 16 RSA, 8, 11 Saigon Commercial Bank, 10 Samsung, 15 Santander, 13 Scotiabank, 12 Setefi, 16 Seychelles Tourism Board, 18 Sleep Train, 19 SoftBank, 6, 7 Solid Försäkringar, 8 Staples, 19 Sunparks, 8 Suzuki, 7 Taiwan Cooperative Bank, 17 Tarjeta Shopping, 6 TD Bank, 17 Telefónica, 14, 16 Ten Lifestyle Management, 4 The Hartford, 9 The Warranty Group, 7 Thomas Cook, 8 Tiendas Efe, 7 T-Mobile USA, 16 Total Artefactos, 7 Tourism Western Australia, 18 Towergate Insurance, 6 Transamerica Life, 6 Tryg, 9 U.S. Bank, 16, 17 UniCredit, 18 UnionPay, 17, 18 Verizon Wireless, 16 Vietcombank, 10 Virginia Surety Company, 7 Visa Europe, 15, 16 Vodafone, 16 Wells Fargo, 16 Western Union, 13, 14 Wirecard Bank, 19 Wirecard Card Solutions, 13, 15 Zürcher Kantonalbank, 5 Zurich, 5 20
  21. 21. Global Affinity Finance Club About GAFC The Global Affinity Finance Club is Finaccord’s quarterly newsletter about affinity financial services worldwide. Through this, Finaccord publishes top line information about key strategic developments in affinity and partnership marketing of financial services around the world, segmented between affinity insurance news, bancassurance news and affinity banking news. This service differs from that provided by other research companies because its focus is genuinely global, often translating news that only appears in languages other than English. In addition, it concentrates exclusively on affinity and partnership marketing strategy. Affinity and partnership marketing strategy is an important component of general distribution strategy for a majority of large banks and insurance companies serving consumers and small businesses as successful partnerships potentially allow them to access groups of customers that they cannot always reach by themselves. If you would like to join Finaccord’s Global Affinity Finance Club, contact us by telephone or send us an email to info@finaccord.com. Thereafter, each quarter, we will send you a link to the page of our website with fresh news and future editions of this document. About Finaccord Finaccord is a leading market research, publishing and consulting company specializing in financial services. We provide our clients with insight with a particular focus on marketing and distribution strategies, including affinity and partnership marketing. Our areas of expertise include: affinity and partnership marketing; automotive financial services; bancassurance; commercial non-life insurance brokers; consumer intelligence; creditor insurance; distribution channels; extended warranties; insurance and assistance linked to payment cards and bank accounts; mobile gadget and telephone insurance; retailer financial services; small business financial services; and travel insurance and assistance. Our international network of consultants is able to deliver information quickly and accurately across a range of countries worldwide, basing research projects on robust data and knowledge rather than supposition and theory. Does your organisation have news about its affinity or partnership marketing relationships that we missed in this newsletter? To produce it, we systematically research close to 300 major financial services institutions from around the world each quarter. However, if you would also like us to include your company in this research, please send an e-mail to analysis@finaccord.com and we will ensure that it is tracked in future quarters. To access the archive of news from the Global Affinity Finance Club please visit www.finaccord.com/afi © Finaccord Ltd., 2014 Registered in London No. 4542931 The Office Farringdon 24 Greville Street London, EC1N 8SS Phone: +44 20 3178 2556 Fax: +44 20 7198 7902 Email: info@finaccord.com www.finaccord.com Finaccord’s latest published reports include:  Automotive Finance and Leasing for Consumers in Europe  Extended Warranties for New and Used Cars in Europe  Global Bancassurance: Strategies of the World's Top 125 Retail Banking Groups  Insurance and Assistance linked to Payment Cards and Bank Accounts in Major Global Markets  Manufacturer-Branded and Dealer-Intermediated Motor Insurance and Road Assistance in Europe  Professional Indemnity Insurance in Europe  Retailer Insurance and Assistance in Europe  Retailer Online Payment Acceptance in Europe  Retailer Payment, Gift and Loyalty Cards in Europe  Travel Insurance and Assistance in the Asia-Pacific Region www.finaccord.com GBP 2,995 GBP 2,995 GBP 2,995 GBP 3,995 GBP 2,995 GBP 2,995 GBP 1,295 GBP 1.995 GBP 1,995 GBP 2,995 21

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