Global affinity finance club spring 2012


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What is the Global Affinity Finance Club? Having had a European focus up to the end of 2010, every quarter from March 2011 onwards, Finaccord will continue to research and publish 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, with no need for users to filter out irrelevant or unrelated information.

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.

Moreover, it can also be a highly relevant topic for the partner entities themselves whether they are other financial institutions or organisations as diverse as automotive brands, charities, energy companies, internet or media firms, loyalty management entities, online aggregators and brokers, professional associations, retailers, sports clubs, telecoms firms, trade unions and travel companies.

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Global affinity finance club spring 2012

  1. 1. AFFINITY INSURANCE SPRING 2012 BANCASSURANCE Global Affinity AFFINITY BANKING Finance ClubFinaccord’s newsletter about affinity financial services worldwideWelcome back to your Club! This quarter’s edition of the Global Affinity Finance Club includes news about affinity and partnership marketing in financial services from as many as 45 countries around the world. Starting in the UK, an eye-catching initiative given the increasing woes of the country’s banking sector is that of HSBC and Marks & Spencer who intend to convert their existing M&S Money brand into a full-service retail bank during 2012 with a plan for in-store branches to eventually reach 50 of the retail group’s outlets. Further afield, Chinese payments company UnionPay is visible in a number of items that illustrate how it is seeking to increase its influ- ence both within and outside of China. Otherwise, deals have been coming thick and fast in the areas of as- sistance and product insurance / warranties with new ventures men- tioned involving the likes of Assurant Solutions, CarGarantie, Driven Solutions, Europ Assistance, Jubilee, MAPFRE Asistencia, Mondial Assistance, SPB and Ten Group. Interestingly, in these areas, mobile operator brands are often cited as the partners which illustrates how they are increasingly diversifying into new areas of banking and insurance. With best regards, Alan Leach Director For our published reports, news and more please visit
  2. 2. Global Affinity Finance ClubTable of contents Affinity insurance News 4 Assurant Solutions renews deal with Bancassurance News 10 American Financial & Automotive Ser- ASSISTANCE 4 vices... 6 CREDITOR INSRUANCE 10 Driven Solutions partners with My911 for ... and creates extended warranty partner- Genworth Financial wins mandate with one-touch access to roadside assistance 4 ship with Best Buy subsidiary in China 7 Welsh building society 10 Europ Assistance and Fiat renew agree- Renault chooses CarGarantie for new LIFE INSURANCE / RETIREMENT ment for road assistance in Europe... 4 extended warranty products 7 SAVINGS 10 ...while Vodafone chooses Europ Assis- eSecuritel to offer warranty and insurance Barclays secures special terms from AE- tance in Hungary 4 cover to customers of Cricket and MTS 7 GON for corporate protection solutions 10 MAPFRE Asistencia picks up motorcycle Jubilee ties with RAC and Santander Con- assistance deal in India 4 sumer Finance for car dealer insurance Legal & General wins life insurance and products... 7 pensions mandate with First Trust Bank... Peugeot Scooters awards Italian roadside 10 assistance contract to MAPFRE Asistencia ... and works with Blue Insurances for 4 mobile gadget and collision damage waiver ... and is appointed exclusive partner for cover 8 protection products by UK building soci- Mondial Assistance extends road assis- ety 11 tance contracts with UK partners 5 MAPFRE Asistencia gains extended war- ranty deal with Mexican telecoms com- MOTOR INSURANCE 11 Mondial Assistance wins home assistance pany 8 deal with online holiday rental company 5 Direct Line and Veneto Banca enhance Orange appoints SPB as mobile insurance partnership with hotel stay offer 11 Citibank selects Ten Group for concierge provider in Belgium and Luxembourg 8 services in Hong Kong 5 GENERAL 11 TRAVEL INSURANCE 8 COMMERCIAL INSURANCE 5 RSA renews long-standing partnership Allianz Global Assistance and Iberia re- with National Australia Groups UK bank- CNA endorsed by two US state banking new travel insurance partnership 8 ing brands 11 associations 5 Europ Assistance wins travel insurance Talanx and Meiji Yasuda buy into Polish MAPFRE enters into trade credit insur- contracts in France and the USA 9 bancassurance opportunity 11 ance joint venture with Euler Hermes 5 HanseMerkur broadens distribution part- ———————————————— LIFE INSURANCE 6 nership with JT Touristik 9 Affinity Banking News 11 Aviva wins five-year life protection affinity GENERAL 9 contract with Tesco 6 AFFINITY BANK ACCOUNTS 11 Allianz signs worldwide memorandum of MS&AD invests in an Indian life insur- understanding with Western Union 9 BAWAG P.S.K. introduces affinity cur- ance joint venture 6 rent accounts with retail chain 11 Gallagher Heath sets up new insurance Sun Life and PVI Holdings form Viet- scheme with medical charity 9 BNP Paribas offers savings account in namese life insurance company 6 association with Habitat 11 Sanitas and Swiss Life expand their exist- PRODUCT INSURANCE / WARRAN- ing distribution agreement 10 Newcastle Building Society launches affin- TIES 6 ity savings with local cancer charity 12 ————————————————- 2
  3. 3. Global Affinity Finance ClubAFFINITY CARDS 12 Wells Fargo and HDFC Bank partner to ... adding to a growing roster of mobile create new US-India remittance service 15 money transfer agreements around theBMO launches a co-branded card pro- world 19gram with three Canadian soccer teams 12 Western Union teams up with quartet of banking institutions in the US... 15 ONLINE PAYMENTS 19Société Générale continues to extend itsrange of affinity cards 12 ... and renews money transfer contract Microsoft and UnionPay tie for online with Spanish post office 15 payments in China 19AUTOMOTIVE FINANCE 12 INTER-BANK CARD DISTRIBUTION Western Union launches WU Pay onlineForest River adds Ally Financial as whole- 16 payment platform 19sale finance provider 12 JCB increases card circulation with China RETAILER BANKING 20GMAC secures finance deals with Opel in and Indonesia through new relationships...Chile and MG Motor in the UK 13 16 HSBC and M&S to offer full retail bank- ing services and very long opening hoursGE Capital Retail Bank extends consumer ... and signs up to merchant licensing 20lending scheme with Yamaha 13 agreement with African bank 16 Scotiabank expands ATM networkBUSINESS BANKING 13 UnionPay secures card distribution links through deal with 7-Eleven and Cardtron- with two further Korean card issuers... 16 ics 20Italian banks establish new affinity bank-ing deals with trade associations 13 ... and ties with merchant acquirers in RETAILER CARDS 20 Denmark and Iceland 16Sberbank links with Russian Guild of American Express introduces prepaidRealtors for mort 14 MOBILE BANKING 16 cards with two major US retail chains... 20CO-BRANDED CARDS 14 Monitise rolls out new mobile banking ... and through Zynga Serve Rewards with partnerships in Indonesia and the UK 16 a provider of social games services 20Barclaycard unveils new Black Visa card inpartnership with international hotel group MOBILE PAYMENTS 17 Chase extends its card issuing relationship14 with Amazon in North America 21 Barclaycard and Orange seek to expandBillpay ties with Hanseatic Bank and Visa usage of contactless payment service 17 GE Capital Retail Bank extends two tyrefor credit card linked to loyalty program finance partnerships 2114 BOKU
Telekom and Sprint 17 Scotiabank and SportChek announce aChase launches US co-branded card prod- new range of NHL credit card products 21uct for Fairmont Hotels and Resorts… 14 PayPal and Softbank establish Japanese digital payments joint venture 17 UnionPay enters into strategic agreement…and Ritz-Carlton becomes a points with Shell in China 22transfer partner for Chase Ultimate Re- UnionPay kicks off mobile payments col-wards 14 laboration with China Mobile 18 RETAILER FINANCE 22Commerzbank and German football fed- Visa Europe secures mobile payments Ikano and Credit Europe Bank tie up foreration launch co-branded credit card 14 partnership with Telefónica 18 Russian joint venture 22CONSUMER FINANCE 15 VocaLink ties with Clairmail for advanced DFS selects LaSer UK for retailer finance mobile banking and payments 18 venture in Ireland 22Cetelem offers point-of-sale finance forBombardier Recreational Products 15 Western Union links with MTN for inter- national mobile payments service... 19INTERNATIONAL REMITTANCES 15 3
  4. 4. Global Affinity Finance Club Affinity InsuranceAffinity Insurance News Europ Assistance and Fiat MAPFRE Asistencia picks up renew agreement for road as- motorcycle assistance deal inASSISTANCE sistance in Europe... IndiaDriven Solutions partners Europ Assistance has been the By means of India Assistance,with My911 for one-touch ac- road assistance partner for Fiat the company through which itcess to roadside assistance group in Europe since 1995, and has been active in India since the two partners have an- 2008, MAPFRE Asistencia hasNorth American road assistance nounced that this agreement has won a mandate with motorcyclespecialist Driven Solutions (part been renewed for a further four manufacturer Piaggio to provideof Drive America Holdings) has years. It covers the Abarth, Alfa roadside assistance to customerssigned a distribution partnership Romeo, Fiat, Jeep and Lancia driving Vespa motorcycles. Thewith My911, a provider of emer- marques in France, Germany, deal is significant given that In-gency-related solutions and Hungary, Italy, the Netherlands, dia is the worlds second largestcommunications services, by Portugal and Switzerland, which market by volume for motorcy-means of which users of the amounts to 80% of Fiat group cles with sales of around 13 mil-My911 service are now able, via vehicles on the road. The ser- lion units in 2011. Piaggio hastheir mobile phones, to auto- vices offered include roadside been present in India since 1999matically summon help from the rescue in case of accidents or and possesses a network of overlocal emergency services in the breakdown (including flat bat- 800 dealer outlets although itsevent of accident or breakdown, tery, lack of fuel or punctured prestige Vespa brand has beenwith additional options for road tyre), plus a replacement car or promoted only since April 2012.assistance. alternative transportation to reach a destination, with cover- Peugeot Scooters awards Ital-The technology uses GPS track- age 24 hours a day, seven days a ian roadside assistance con-ing, works across several mobile week. tract to MAPFRE Asistenciaplatforms (including Androidand iOS) and can also be inter- ...while Vodafone chooses In Italy, MAPFRE Asistenciafaced with most cars engine Europ Assistance in Hungary has won an agreement with Peu-management and diagnostic sys- geot Scooters, the company be-tems. This allows the phone to Meanwhile, Vodafone Hungary longing to Peugeot Citröen thatreport accidents and serious has announced that customers specialises in motor cycles, forproblems and to summon help can now use their smartphones the provision of both roadsideeven if the driver is uncon- to access assistance services di- assistance and general customerscious. In less critical situations, rectly through a new partnership services. These will be providedpushing the My911 roadside with Europ Assistance. Custom- by means of a free telephoneassistance button will result in ers can register online to sub- number available on a 24/365the driver being connected to a scribe to the AutoSOS app, the basis. With regards to the road-Driven Solutions customer care price of which is added to their side assistance proposition, thecentre. monthly mobile phone invoice. service means that customers who break down with a repair time of more than 36 hours will be either returned to their point of departure or taken to their 4
  5. 5. Global Affinity Finance Club Affinity Insurancedestination. MAPFRE Asisten- Mondial Assistance wins darin. It is intended that card-cia has been active in Italy since home assistance deal with holders based in Hong Kong2006 and, since then, has built online holiday rental com- will benefit from the connec-up a strong position in the pany tions and expertise of Ten’s life-countrys extended warranty style managers in both Hongmarket. Moreover, it also man- Meanwhile, in France, Abritel, a Kong and, if required, any of itsages breakdown repair services leading online holiday rental other offices worldwide.on behalf of more than 1,000 company, has signed a partner-dealerships across the country. ship with Mondial Assistance ————————————-- through the broker Innoserve inMondial Assistance extends order to offer home emergency COMMERCIAL INSURANCEroad assistance contracts insurance and assistance to thewith UK partners owners of holiday homes and CNA endorsed by two US apartments who do not live near state banking associationsIn the UK, Volvo has disclosed their properties. Abritel, thethat it is working with Mondial French subsidiary of the CNA has announced that it hasAssistance to offer service- HomeAway group, has over been endorsed by two stateactivated roadside assistance to 280,000 properties offered for banking associations in the US:its customers. Specifically, rent worldwide, including the Arkansas Bankers Associa-Volvo customers who have a 70,000 in France. This policy is tion (ABA) and the Californiafull manufacturers scheduled offered to owners who use Bankers Association (CBA).service carried out at a Volvo Abritel to rent their properties; Both have selected the insurerauthorised repairer are given 12 coverage includes kitchen appli- as the preferred provider of spe-months of complimentary road ances, boilers, air conditioning, cialised coverage for the associa-assistance, operated by Mondial blinds, and electrical and plumb- tions member institutions.Assistance. Volvo has posi- ing equipment, with emergency CNAs portfolio of cover fortioned this as a way to increase help available 24 hours a day, banks and financial institutionscustomer loyalty; it reports that seven days a week. In case of a includes liability cover for direc-it carries out more than 40,000 failed boiler or water heater, tors and officers, bankers pro-services a year through its ap- Mondial Assistance also offers fessional liability, lender liability,proved network, and that many to relocate tenants. employment practices liability,of these will qualify for free as- fiduciary liability, property andsistance, which costs up to GBP Citibank selects Ten Group casualty insurance, cyber liability99 for a year if purchased sepa- for concierge services in and information risk and fidelityrately. Hong Kong bonds, as well as the provision of a dedicated banking supportSeparately, Mondial Assistance In Hong Kong, Citigroup has team.has renewed a partnership it be- selected concierge provider, Tengan with HSBC in the UK in Group, to supply lifestyle conci- MAPFRE enters into trade2008 for a further three years. erge services to affluent custom- credit insurance joint ventureThis partnership is focused on ers with Citibank Ultima credit with Euler Hermesthe provision of road assistance cards. The service will operateto HSBC Advance and first di- on a 24/7 basis and be provided With a focus on Spain and fourrect customers. in English, Cantonese and Man- countries in Latin America – 5
  6. 6. Global Affinity Finance Club Affinity Insurancenamely, Argentina, Chile, Co- and critical illness cover. These and life insurance penetrationlombia and Mexico - MAPFRE products will be available online still remains fairly low by inter-has entered into a joint venture via Tesco Bank or over the tele- national standards.with Euler Hermes, an insur- phone, and customers will alsoance group specialising in trade be able to obtain information Sun Life and PVI Holdingscreditor insurance that is con- about them through some of form Vietnamese life insur-trolled by Allianz. Subject to Tesco’s network of around ance companyauthorisation by the relevant 2,900 stores. This expandslocal authorities, the joint ven- Tesco’s existing relationship In Vietnam, Sun Life Assuranceture, which is owned equally by with Aviva which already pro- Company of Canada (part ofeach party, will commence busi- vides a private medical insur- Sun Life Financial) has agreed toness from the start of 2013 and ance scheme for Tesco’s em- form a life insurance joint ven-should achieve gross written ployees. ture with PVI Holdings, a Viet-premiums of around EUR 135 namese insurance and invest-million in its first year. The joint MS&AD invests in an Indian ment group. The new companyventure aims to combine MAP- life insurance joint venture will be known as PVI Sun Life,FREs strong distribution capa- in which PVI Holdings will bebilities in Spain and Latin Amer- Japans MS&AD Insurance the majority shareholder (withica with the expertise of Euler Group has agreed to acquire 51% of equity), with all remain-Hermes in the specific field of from US firm New York Life ing shares being held by Suntrade credit insurance, which 26% of the Indian insurer Max Life Financial. PVI Holdings isincludes an ability to analyse the New York Life Insurance Com- currently active in the Vietnam-financial stability of around 40 pany. The new company, whose ese markets for both life andmillion businesses around the majority shareholder will con- non-life insurance plus reinsur-world. tinue to be Max India Group, ance and other financial ser- will be known simply as Max vices. The group, which ac-————————————-- Life Insurance Company. This counts for around a fifth of the new venture (which constitutes countrys non-life insuranceLIFE INSURANCE the maximum foreign owner- market, generated premiums of ship permitted under Indian USD 202 million in 2011.Aviva wins five-year life pro- regulatory law) will mean thattection affinity contract with MS&AD is active in five over- ————————————--Tesco seas life insurance markets within the Asia-Pacific region. PRODUCT INSURANCE /In the UK, Aviva and Tesco As part of the capital alliance, WARRANTIESBank, a retailer bank owned by MS&AD will also dispatch vari-supermarket chain Tesco, have ous employees to the renamed Assurant Solutions renewsestablished a partnership for life Indian firm, with two of these deal with American Financialprotection products with a dura- being due to serve as directors. & Automotive Services...tion of five years. The agree- Fuelled by dramatic increases inment, which will begin later in the number of middle-class citi- In the US, Assurant Solutions, a2012, will involve the distribu- zens, Indias life insurance mar- global provider of extended ser-tion of Avivas main protection ket has averaged 24% growth vice contracts, has announcedproducts including life insurance per annum over the past decade, an extension of its long-term, 6
  7. 7. Global Affinity Finance Club Affinity Insuranceexclusive relationship with new car, and this decreases rap- tiers of coverage: the so-calledAmerican Financial & Automo- idly after expiry of the manufac- Complete Program covers acci-tive Services. By means of this, turer warranty; it is expected dental damage (including liquidcustomers who purchase vehi- that more customers will take damage), loss, theft and mal-cles at any of American Finan- out these contracts when they function after the warranty ex-cials affiliated dealerships in the hold an extended warranty. pires; the Enhanced ProgramUS and elsewhere will be of- covers accidental damage, lossfered vehicle extended service The BestTime warranty being and theft; and the Extendedplans from Assurant Solutions, introduced by Renault and Warranty Program covers mal-just as they have since 2000. Dacia runs for either 12 months function or mechanical failure or for 24 months up to 100,000 after the manufacturers war-... and creates extended war- kilometres, following the end of ranty expires.ranty partnership with Best the manufacturers warranty. AtBuy subsidiary in China the expiry of the warranty, cus- In the US, Cricket Communica- tomers can choose to buy an- tions is also offering an eSecu-Meanwhile, in China, it has en- other years cover up to a maxi- ritel extended warranty and in-tered into a partnership with mum of ten years after initial surance product to its custom-Five Star, a wholly-owned affili- registration and up to 200,000 ers. This covers a range of de-ate of Best Buy, whereby Assur- kilometres. The warranty is tied vices, including tablets, givingant Solutions will serve as the to the vehicle and thus transfers protection against accidentalexclusive provider of extended to a new owner when the car is damage, loss and theft, as wellprotection products and services sold. as technical malfunction andfor more than 200 stores in other issues experienced beyondmainland China. The contract is eSecuritel to offer warranty the handset manufacturer’s con-exclusive and has a duration of and insurance cover to cus- ventional warranty.five years. Assurant Solutions tomers of Cricket and MTSbegan offering extended protec- Jubilee ties with RAC andtion programs and related ser- In North America, handset in- Santander Consumer Financevices in China in 2007. surance and extended warranty for car dealer insurance prod- provider eSecuritel, a subsidiary ucts...Renault chooses CarGarantie of Brightstar, has disclosed twofor new extended warranty new partnerships for specialised In the UK, Jubilee Insuranceproducts mobile phone cover. Canadian has disclosed a first step into the mobile network MTS Allstream market for niche insuranceIn Germany, Renault has signed and US-based prepaid network products sold through automo-a new partnership with CarGa- Cricket Communications have tive dealers by means of a newrantie for extended warranties both agreed to offer eSecuritels partnership established withfor Renault and Dacia cars customised insurance and ex- RAC and Santander Consumerwhose manufacturer warranty is tended warranty products to Finance. Specifically, the Lloydsabout to expire. It notes that their customers. entity has been appointed by thethis will be a major benefit to RAC as the underwriter for acar dealers because only 30% to MTS customers will be offered range of new products, the first40% of customers buy a service eSecuritels wireless protection of which to launch are a com-and maintenance contract with a program, which offers three bined tyre and alloy wheel pro- 7
  8. 8. Global Affinity Finance Club Affinity Insurancetection policy and a minor acci- UK, focused on mobile gadget Orange appoints SPB as mo-dental damage policy which are and collision damage waiver in- bile insurance provider inspecifically targeted at the dealer surance. Jubilees appointment Belgium and Luxembourgpartners of Santander Consumer will see it building on Blue In-Finance. surances existing gadget insur- SPB has announced that it has ance product, launched in 2010, taken over the insurance pro-The scheme has been designed with an all-risks scheme that grams of Mobistar, the Orangeto provide dealers with insur- provides customers with a operator in Belgium, and of Or-ance cover on a scale usually claims replacement programme ange Luxembourg. There areonly available to larger dealer- managed in Ireland by Jubilee’s two policies available, one forships and it is anticipated that claims service partner Out- private customers and anotherthe range of products will help source Services Group (OSG), for professionals, which coverthem to both extend their cus- an independent, specialist out- theft, accidental damage, break-tomer relationships at the point sourcing firm. Meanwhile, the down and fraudulent use of mo-of sale and in after-sales activi- collision damage waiver cover bile phones. The partnershipties. Also, by enabling dealers to will be offered alongside Blue between SPB and Orange beganundertake their own repairs, it is Insurances travel insurance in France in 2002 and now ex-hoped that the scheme will help product providing higher limits tends to five European coun-to enhance both financial ser- of cover compared to its previ- tries: Belgium, France, Luxem-vices margins and customer re- ous scheme, and also offering bourg, Spain and Switzerland. Intention. The new scheme is the supplemental liability cover for addition, SPB has launched an-first of a number of RAC- North America. other new service for Orangebranded products being devel- customers called Point Serviceoped to support the extension MAPFRE Asistencia gains Mobiles, provided by an epony-of its product portfolio. extended warranty deal with mous company. This allows Or- Mexican telecoms company ange customers to have theirThe scheme will be marketed phone repaired or replaced ininitially via around 3,000 dealers In Mexico, MAPFRE Asistencia under 40 minutes at a locationthat use Santander Consumer has been selected by Telmex, a near their home. SPB acquired aFinance and will be sold along- telecoms company owned by majority interest in Point Serviceside car sales and finance pack- América Móvil, as its provider Mobiles in February 2012.ages. of extended warranties sold in conjunction with mobile com- ————————————--... and works with Blue Insur- puting products. The proposi-ances for mobile gadget and tion is available to customers TRAVEL INSURANCEcollision damage waiver acquiring mobile computingcover products from any of the 388 Allianz Global Assistance and retail outlets belonging to Tel- Iberia renew travel insuranceAnother affinity relationship mex and who take out the asso- partnershipcreated by Jubilee Insurance is ciated card. MAPFRE Asisten-that with insurance broker Blue cia has been active in Mexico Allianz Global Assistance andInsurances, a prominent pro- since 1991. Iberia have announced the sign-vider of travel and niche insur- ing of a renewed partnershipance policies in Ireland and the agreement for a further three 8
  9. 9. Global Affinity Finance Club Affinity Insuranceyears, covering the sale of travel customers purchasing rail tickets GENERALinsurance policies via the air- from the www.tgv-europe.comlines website. This partnership and web- Allianz signs worldwidewas originally signed in 2006, sites. memorandum of understand-and has since then expanded to ing with Western Uniona total of 19 countries, including Meanwhile, in the USA, ProtectBrazil, France, Italy and the US, Your Bubble has chosen CSA At a global level, Allianz andas well as Spain. Travel Protection, an American Western Union have signed a subsidiary of Europ Assistance, memorandum of understandingEurop Assistance wins travel for its travel insurance proposi- to develop, design and distributeinsurance contracts in France tion. Protect Your Bubble insurance products in severaland the US launched in the UK to cover countries around the world. The everyday little things such as two partners intend to workIn France, Europ Assistance has holidays, pets and smartphones, closely to develop solutions forwon the contract to supply and has now entered the US customers with the aim oftravel insurance alongside the market with a similar concept. reaching millions of potentialsale of train tickets by Voyages- clients. In turn,, a subsidiary of SNCF, HanseMerkur broadens dis- will also be explored for thethe countrys national railway tribution partnership with JT marketing of Western Unionnetwork. This contract is for Touristik products to the customers ofthree years running from the Allianz.start of July 2012, and follows a Ha nse Me rkur Re iseve rsi-tender process that began in au- cherung, the travel insurance Gallagher Heath sets up newtumn 2011; the previous pro- division of Hamburg-based insurance scheme with medi-vider was Mondial Assistance. HanseMerkur, and JT Touristik, cal charity a Berlin-based tour operator,This programme is being intro- have announced the extension In the UK, Gallagher Heath In-duced during the second half of of a distribution agreement al- surance Services (GHIS) has2012 across the nine European ready running since 2008. The established a partnership withcountries where Voyages- new agreement includes a Pancreatic Cancer UK to manages the sale of broader number of insurance vide an insurance proposition totrain tickets, beginning with the products than before as JT individuals affected by the con-actual Touristik will not only sell travel dition, as well as their carers andwebsite. health insurance but will also other supporters of the charity. market travel interruption and Specifically, the GHIS team hasBy the end of the year, it is travel inconvenience cover un- designed a scheme which in-planned to cover all mobile sales derwritten by HanseMerkur cludes travel, household and(i.e. the Reiseversicherung. motor insurance packages. Insite) and the Horaires et Résa particular, the travel productapplication which is currently ————————————-- includes the ability to cover theavailable for iPhone and iPad, whole travelling party under theAndroid, BlackBerry and Win- same policy with premiums cal-dows Phone 7 devices. It will culated on the basis of each in-also be extended to international dividual’s declaration in terms of 9
  10. 10. Global Affinity Finance Club Bancassuranceage, pre-existing and declared Bancassurance News to be accepted in place of AE-medical conditions, and destina- GON’s usual financial require-tion. The cover is being under- CREDITOR INSURANCE ments. As part of this arrange-written by a panel of insurers, ment, the clients of Barclays willranging from the Lloyd’s market Genworth Financial wins potentially receive: an individualto composite insurance compa- mandate with Welsh building pricing facility that may poten-nies. In future, GHIS and Pan- society tially make the prices quotedcreatic Cancer UK also antici- among the best in the market;pate introducing life insurance In the UK, the Wales-based immediate cover for clean appli-products. Monmouthshire Building Soci- cations while medical underwrit- ety has appointed Genworth ing is taking place; mobile medi-Sanitas and Swiss Life ex- Financial as its new mortgage cal checks and detailed medicalpand their existing distribu- indemnity insurance provider. reports; and enhanced servicetion agreement The agreement came into force standards including prioritised in May 2012 and aims to pro- follow-up of outstanding infor-In Switzerland, Sanitas, one of vide a practical and viable solu- mation in order to further re-the largest health insurance pro- tion for mortgage borrowers. duce time between applicationviders in the country, and Swiss and completion.Life have launched a program ————————————--called Swiss Life SimplyCare Legal & General wins life in-which complements their exist- LIFE INSURANCE / RE- surance and pensions man-ing distribution agreement. TIREMENT SAVINGS date with First Trust Bank...Swiss Life SimplyCare combinesmandatory basic health coverage Barclays secures special Legal & General and First Trustwith supplementary insurance terms from AEGON for cor- Bank, a banking brand of AIBfor inpatient and outpatient care porate protection solutions with 48 branches in Northernto create a customised health- Ireland, have announced a long-care plan. With their launch of In the UK, Barclays Corporate term joint distribution agree-this new health insurance con- & Employer Solutions (Barclays ment for a range of life insur-cept which is available exclu- C&ES), the employee benefits ance, investment and pensionsively through Swiss Life advi- and worksite marketing arm of products. First Trusts financialsors, Sanitas and Swiss Life have Barclays, has agreed special consultants will sell Legal &reinforced their joint distribu- terms with AEGON to supply General products throughouttion and market development corporate protection solutions the branch network on an ap-partnership. While Sanitas aims to its small and medium-sized pointed representative basis,to boost Swiss Life’s sales of life business clients. While Barclays using Legal & Generals Retailinsurance products, Swiss Life C&ES offers advice and services Distribution Review (RDR)helps to promote the marketing from the whole of the market, model for banks and buildingand distribution of the health the special arrangement with products offered by AEGON is designed to offerSanitas. clients a differentiated proposi- tion. Specifically, AEGON has————————————-- worked with Barclays to enable the bank’s financial underwriting 10
  11. 11. Global Affinity Finance Club Affinity Banking... and is appointed exclusive GENERAL suda taking 28% and Getinpartner for protection prod- Holding retaining 16.5%.ucts by UK building society RSA renews long-standing partnership with National ————————————In addition, Legal & General Australia Groups UK bank-has also won a new business ing brands Affinity Banking Newspartnership with the MansfieldBuilding Society for the provi- In the UK, RSA has disclosed A FF I NI TY BA N K AC-sion of protection products. the renewal of its partnership COUNTSSpecifically, Legal & General for household and motor insur-will now provide mortgage- ance with the Clydesdale Bank BAWAG P.S.K. introducesrelated and family-related pro- and Yorkshire Bank networks affinity current accounts withtection cover to be sold on an for a further five years. Accord- retail chainexclusive basis by the building ing to the two partners, the dealsocietys dedicated team of means that both new and exist- In Austria, BAWAG P.S.K., amortgage specialists. ing customers buying through retail bank owned ultimately by these two subsidiaries of Na- private equity firm Cerberus————————————-- tional Australia Group, will Capital Management, has en- benefit from newly-developed tered into a partnership withMOTOR INSURANCE products, providing them with a Tchibo, an international retail range of insurance to suit their and coffee house chain, to dis-Direct Line and Veneto individual needs. tribute current account prod-Banca enhance partnership ucts. The accounts, branded aswith hotel stay offer Talanx and Meiji Yasuda buy KontoBox Gold, can be pur- into Polish bancassurance chased across all 140 TchiboIn Italy, Direct Line and Veneto opportunity stores in Austria and also in-Banca, which have been part- clude a credit card.ners for motor insurance for In Poland, Talanx Internationalover ten years, are offering cus- and Japan Meiji Yasuda Interna- BNP Paribas offers savingstomers who buy motor insur- tional Life Insurance have com- account in association withance at one of the banks pleted a joint acquisition of in- Habitatbranches a complimentary one surer Europa Group from Getinnight stay at any of the three Holding enabling them to enter In France BNP Paribas hasand four star hotels participating the countrys bancassurance launched a savings account inin the scheme nationwide. market. In December 2011, partnership with Habitat, named Getin Holding, the owner of the Compte Epargne Maison————————————-- Idea Bank, had announced its (Home Savings Account), fol- intention to launch a bancassur- lowing the success of a previous ance partnership with the two Holiday Savings Account insurers once the sale of Europa launched in July 2011 with Voy- Group was completed. Under This savings ac- the terms of the agreement, Ta- count is only available online lanx will own 50% of the equity and offers customers a discount capital of Europa with Meiji Ya- of 15% on purchases made in 11
  12. 12. Global Affinity Finance Club Affinity BankingHabitat stores in France and AFFINITY CARDS card with the rugby club StadeMonaco or on the Habitat web- Toulousain plus a business pay-site. BMO launches a co-branded ment card targeted at entrepre- card program with three Ca- neurs that support France Initia-Moreover, it is an instant access nadian soccer teams tive, an association that providesaccount and carries an interest finance and support for newrate of 1.50% (gross) with a pos- In Canada, BMO Bank of enterprises. In addition, it hassible loyalty bonus of 0.25%. Montreal, which has been launched a new version of its SoBNP Paribas notes that French closely associated with soccer in Music Rolling Stones paymenthouseholds spend an average of the country for several years, card, and reported that it hadbetween EUR 1,000 and EUR has launched the BMO Major issued 28,000 cards in this col-4,000 on furniture and furnish- League Soccer MasterCard pro- lection following launch in De-ings each year, which implies a gram with three teams, namely cember 2009.saving of EUR 150 and EUR Montreal Impact, Toronto and600 through this partnership; Vancouver Whitecaps. With an ————————————--note that the interest rate is no estimated 2.6 million Canadianshigher than for the standard sav- playing both competitively and AUTOMOTIVE FINANCEings account, so the benefit to casually, soccer is Canadas high-customers comes from this dis- est participation sport, and is Forest River adds Ally Finan-count. also very keenly followed. These cial as wholesale finance pro- new affinity credit cards will al- viderNewcastle Building Society low fans of the above teams tolaunches affinity savings with benefit from added-value fea- Forest River, a manufacturer oflocal cancer charity tures at games and venues, in- recreational vehicles in the US cluding a dedicated stadium en- has selected Ally Financial as anIn the UK, the Newcastle Build- trance for BMO customers, a additional provider for dealering Society has launched an ISA chance to participate in the offi- inventory financing. Eligible(Individual Savings Account) cial coin toss before the game, dealers can receive an interestaffiliated with local cancer char- and the opportunity to win seat rebate from Forest River fority the Sir Bobby Robson Foun- upgrades or hospitality vouch- units sold to retail customersdation. The new account, called ers. within 90 days of invoice. Inthe Sir Bobby Robson Founda- addition to wholesale financing,tion ISA, which was launched Société Générale continues to Ally is also offering dealers realon the foundations fourth anni- extend its range of affinity estate and commercial loans,versary, pays a variable rate of cards inventory insurance, remar-up to 2.60% gross AER with keting services for trade-ins offree withdrawals, while paying In France, Société Générale has recreational vehicles, and con-an additional 0.10% to the Sir launched two new charity cards, sumer financing to support newBobby Robson Foundation it- one with the Emmaüs Solidarité and used sales.self. association and another with the Fédération Française Handis-————————————-- port, a charity that helps handi- capped people to play sport. It has also introduced an affinity 12
  13. 13. Global Affinity Finance Club Affinity BankingGMAC secures finance deals GMAC for new, demonstrator newed an agreement with Retewith Opel in Chile and MG and used vehicle inventory. This Imprese Italia (a body that itselfMotor in the UK initiative expands on the existing brings together five separate preferred retail financing rela- bodies - Casartigiani, CNA,In Chile, Opel and GMAC, a tionship between the two com- Confartigianato, Confesercentisubsidiary of Ally Financial, panies established in October and Confcommercio) to supporthave announced a new strategic 2011. its members with a fund worthalliance for automotive finance. EUR 5 billion. Rete ImpreseGMAC’s funding, which can GE Capital Retail Bank ex- Italia represents around 2.6 mil-cover up to 100% of the cost of tends consumer lending lion enterprises employing somea vehicle, has several options scheme with Yamaha 11 million professionals whoincluding conventional financing themselves constitute 60% ofranging from four to 60 months In conjunction with Yamaha the Italian workforce.and a program called Smart Buy Motor Corporation, GE Capitalwhich is an alternative for cus- Bank has announced a multi- Secondly, it has created antomers who like to renew their year renewal of an instalment agreement with Unionfidi tocars frequently and incorporates lending program. Since the Ya- support SMEs in the north-westthe option for including mainte- maha program began in 2004, of Italy, this time through anance. more than USD 2 billion of new fund of EUR 20 million to be and pre-owned power sports used for both lines of creditIn addition, Opel customers can equipment has been financed with a duration of up to 18choose a program called 50/50 and the program is available months and longer-term invest-by means of which the customer through around 1,700 Yamaha ments. This sum is being addedprovides 50% of the value of motor sports and watercraft to an existing fund of EUR 1.2the car as a down-payment, pays dealerships for purchases of ve- billion available to enterprises in12 instalments of interest and hicles, parts, garments and ac- the Liguria, Piedmont and Vallethen pays the remaining 50% of cessories. dAosta regions plus a furtherthe cost in the last instalment. facility of EUR 500 million ear-The GMAC financing system ————————————-- marked for the leasing of capitalenables dealers to offer a per- goods.sonalised plan that calculates BUSINESS BANKINGpayments for the customer us- Thirdly, BNL (owned by BNPing an iPad and the vendor is Italian banks establish new Paribas) is working with Confidithen able to approve a loan affinity banking deals Sardegna, a trade associationwithin 20 minutes. based in Sardinia, to support In Italy, as has often been the local SMEs with a fund worthFurthermore, in the UK, MG case in previous quarters, several EUR 20 million. Grants madeMotor, a niche car manufacturer banks have established new from this fund can be investedbrand, has appointed GMAC agreements with trade associa- in both operational managementUK as its preferred wholesale tions with the aim of supporting and the development of projectsfinancing provider for dealer- small and medium-sized enter- both in Italy and abroad.ships. This means that MG deal- prises (SMEs).ers are now able to obtain Finally, Veneto Banca has madewholesale financing from Firstly, Intesa Sanpaolo has re- a fund worth EUR 100 million 13
  14. 14. Global Affinity Finance Club Affinity Bankingavailable to support SMEs based has around 60 million members and Resorts. Fairmont is a lux-in the Friuli-Venezia-Giulia re- worldwide - to earn more points ury brand owned by FRHIgion for medium- and long-term on hotel stays and purchases Holdings, whose other hotelproject financing. This is being which can then be redeemed for brands include Raffles andmade available through Confidi free nights or for many other Swissôtel. In total, the groupPordenone, a local organisation rewards. Specifically, customers controls more than 100 luxuryoffering loan guarantees. with a Black Visa card are re- hotels and resorts. Holders of warded with double the amount the Fairmont Visa SignatureSberbank links with Russian of points compared to the stan- card will earn Fairmont RewardsGuild of Realtors for mort- dard Visa card, earning them with all of their purchases, andgage lending deal four points for every GBP 1 cardholders spending more than spent at IHG hotels and two USD 1,000 within the first threeIn Russia, Sberbank and the points for every GBP 1 spent months will also receive twoRussian Guild of Realtors have elsewhere. complimentary overnight stays,signed an agreement by means complete with breakfast.of which estate agencies can Billpay ties with Hanseaticstart working with Sberbank to Bank and Visa for credit card …and Ritz-Carlton becomessource mortgages by completing linked to loyalty program a points transfer partner fora single form and generally Chase Ultimate Rewardsavoiding the bureaucracy of the In Germany, Billpay, an onlineusual verification procedure payment service provider based On a related note, Chase haswhich can take up to two in Berlin that works with online expanded its Ultimate Rewardsmonths. This deal is designed to merchants to facilitate transac- program to include a new pointsimprove interaction between tions and instalment payments, transfer partner, namely high-Sberbank and estate agencies has launched a new co-branded end travel brand The Ritz-across all 60 Russian regions. credit card in co-operation with Carlton Hotel Company. Under Hanseatic Bank and Visa. The this new deal, cardholders are————————————-- Billpay Visa card, which is being able to convert Ultimate Reward issued by Hanseatic Bank, is points into Ritz-Carlton Re-CO-BRANDED CARDS linked to a new loyalty program wards points at a ratio of 1:1, that will enable customers to and with no restrictions onBarclaycard unveils new collect bonus points for using transfer quantity. Ritz-CarltonBlack Visa card in partner- the card at a variety of online Rewards points can be earnedship with international hotel retailers. and redeemed at Ritz-Carltongroup hotels and resorts, as well as at Chase launches US co- 3,500 partner hotels around theIn the UK, Barclaycard has an- branded card product for world.nounced the launch of the Pri- Fairmont Hotels and Re-ority Club Rewards Black Visa sorts… Commerzbank and Germancard in association with Inter- football federation launch co-Continental Hotels Group In the US, Chase has been se- branded credit card(IHG). The new card offers lected as the issuing partner formembers of the Priority Club the first ever credit card product In Germany, Commerzbank, aRewards loyalty scheme - which launched by Fairmont Hotels sponsor of the countrys na- 14
  15. 15. Global Affinity Finance Club Affinity Bankingtional football federation, the INTERNATIONAL REMIT- with four financial institutions,Deutscher Fußball-Bund (DFB), TANCES namely Citizens Bank, andhas launched a new co-branded MIDFLORIDA Credit Union,MasterCard credit card with the Wells Fargo and HDFC Bank Right Choice Money ServicesDFB as part of a renewed part- partner to create new US- (owned by Redstone Federalnership. This agreement is part India remittance service Credit Union) and Veridianof a wider sponsorship initiative Credit Union. The respectivewhereby Commerzbank is also Non-resident Indians living in agreements will enable the insti-advertising its bank accounts the US will soon be able to send tutions to offer Western Unionsand other financial services in money home via a new channel global money transfer and billassociation with the DFB. as a result of an initiative be- payment services to their cus- tween Wells Fargo and HDFC tomers.————————————-- Bank. International remittance is a large and growing market and, ... and renews money transferCONSUMER FINANCE whereas HDFC Bank has tradi- contract with Spanish post tionally been strong in remitting officeCetelem offers point-of-sale funds from various Middlefinance for Bombardier Rec- Eastern countries to India, this Furthermore, in Spain, Westernreational Products new partnership for US-India Union and CORREOS, the transfers is one that the two countrys post office network,In France, Bombardier Recrea- partners believe could be highly have signed a new agreementtional Products (BRP), the pro- significant. lasting five years to continueducer of motorised recreational marketing the Western Unionvehicles such as the Ski-Doo, According to the World Bank, Money Transfer service and toLynx, Sea-Doo, Evinrude, John- remittance flows to developing introduce the Western Unionson, Rotax and Can-Am, has countries were an estimated Business Solutions service.signed an agreement with USD 351 billion in 2011, up 8% Thanks to the new contract,Cetelem whereby the consumer from the previous year. Wells CORREOS will expand thefinance subsidiary of BNP Fargo provides retail banking range of Western Union servicesParibas will be the finance pro- and other financial services via a that are available throughout itsvider for independent BRP deal- network of around 9,000 network of over 2,260 branchers in France. Dealers will be branches. The first transaction offices. The Western Unionable to offer customers the full under this new scheme will need Business Solutions service en-range of Cetelems financial to be conducted in person at a ables companies of all sizes toproducts, such as loans and leas- Wells Fargo branch, but all sub- send and receive internationaling with the option to buy, plus sequent activity can take place payments.related services such as insur- either online or via phone.ance and payment via its Aurore ————————————--card. Western Union teams up with quartet of banking institu-————————————-- tions in the US... In the US, Western Union has announced new agreements 15
  16. 16. Global Affinity Finance Club Affinity BankingINTER-BANK CARD DIS- merchant licensing agreement payments in Iceland and meansTRIBUTION with Equity Bank in Africa that Chinese language interfaces through which JCB cards will be will be added to around 90% ofJCB increases card circula- accepted from the start of De- ATMs in the country. More-tion with China and Indone- cember 2012 at all of the banks over, in a comparable arrange-sia through new relation- merchant locations in Kenya, ment in Denmark, Danish cardships... Rwanda, South Sudan, Tanzania service provider Nets has stated and Uganda. that it will now accept UnionPayJapanese payments company cards throughout that country.JCB has signed new card issuing UnionPay secures card distri-agreements with Bank Interna- bution links with two further ————————————--sional Indonesia (BII) and with Korean card issuers...Industrial and Commercial Bank MOBILE BANKINGof China (ICBC). BII, one of In South Korea, UnionPay hasthe largest commercial banks in announced agreements with Monitise rolls out new mobileIndonesia, will launch the BII- card-issuing firms KB Kookmin banking partnerships in In-JCB Platinum credit card, the Card and Korea Shinhan Card donesia and the UKfirst JCB platinum card in Indo- Company, whereby the firmsnesia. The card will target a will issue UnionPay payment Mobile banking and paymentrange of affluent customers in cards throughout the country. specialist Monitise has an-the country, including Indone- This will increase the Chinese nounced new partnerships withsians who frequently travel to payment card firms distribution three organisations namely, As-Japan and Japanese individuals in South Korea, where cards tra Graphia Group, HSBC andliving in Indonesia. Meanwhile, carrying its name are issued al- The Co-operative Bank.ICBCs flagship credit card will ready by Korea BC Card Com-now be issued carrying the JCB pany and Lotte Card Company, The relationship with Astralogo, providing customers with with approximately 2.45 million Graphia Group in Indonesiatravel-related services such as UnionPay cards in circulation in takes the form of a joint ven-the JCB Plaza and JCB Plaza total. UnionPay credit and debit ture. Named AGIT MonitiseLounge in addition to ICBCs cards are increasingly accepted Indonesia, it will combine theown loyalty program and other across Korea and can also be expertise of Monitise Asia Pa-functions and services. Custom- used for cash access at roughly cific, itself a joint venture be-ers may also choose to be billed half the ATMs in the country. tween Monitise and the Firstfor their international spending Eastern Investment Group, andon the card in US dollars or in ... and ties with merchant ac- Astra Graphia InformationJapanese yen. ICBC claims to quirers in Denmark and Ice- Technology (AGIT). Thus far,have issued more credit cards land AGIT Monitise Indonesia hasthan any other bank in China. completed the installation of a In a separate deal, Icelandic data centre in Jakarta to support... and signs up to merchant bank card specialist Borgun has mobile banking, payments andlicensing agreement with Af- agreed to start accepting Union- commerce, which will allowrican bank Pay cards across all of its mer- banks, mobile operators, retail- chant outlets. This covers virtu- ers and other service providersElsewhere, JCB has signed a ally all retailers accepting card to connect via a shared and se- 16
  17. 17. Global Affinity Finance Club Affinity Bankingcure network, enabling the de- further devices from a variety of BOKU
livery of mobile services to both manufacturers planned for partnerships
banked and unbanked custom- launch throughout the year. Telekom and Sprinters. The first service using thenew platform will be launched In addition, Barclaycard is intro- US-based mobile payments spe-in conjunction with Permata- ducing a new functionality, cialist BOKU has announcedBank, one of the top ten banks which will allow credit or debit deals with both Deutsche Tele-in Indonesia. card customers at any UK bank kom
Germany and Sprint in to connect to the Quick Tap the US.
partnership willMeanwhile, in the UK, both service. This will be the first allow the customers of T-HSBC and The Co-operative time that Quick Tap will be Mobile and Sprint to make pay-Bank are introducing iPhone available to those without cards ments using only their mobilebanking apps designed by Moni- issued by Barclays or Barclay- telephone numbers for digitaltise, with apps for other smart- card. Specifically, customers will goods and services, includingphone platforms including An- be able to transfer up to a limit games, music and Facebookdroid and BlackBerry expected of GBP 150 directly from their credits. Specifically, customersto follow. The Co-operative account onto a Quick Tap app. will enter their mobile numberBank will also offer its custom- to pay and will confirm theirers without smartphones an Once loaded with money, the payment by responding to analert and enquiry service based mobile is then ready to make SMS message; the charge willon text messaging, also designed single payments of up to GBP then appear on their wirelessby Monitise. 20 by simply being tapped on a bill. The partnerships come hard contactless terminal. The Bar- on the heels of BOKUs an-————————————-- claycard payment app, which nouncement that it has received sits on the home screen of all a USD 35 million strategic in-MOBILE PAYMENTS handsets compatible with Quick vestment from multiple sources, Tap, contains information such including private equity firmBarclaycard and Orange seek as electronic statements detail- NEA, Telefónica and other in-to expand usage of contact- ing Quick Tap purchases so that vestors, to develop its mobileless payment service customers can keep an eye on payments and billing platform as their spending and manage fi- well as to fund future interna-In the UK, Barclaycard and Or- nances easily while on the move. tional expansion.ange have announced that theirQuick Tap contactless mobile By the end of 2012 it is pre- PayPal and Softbank estab-payment service will shortly be dicted that there will be over lish Japanese digital pay-available on selected handsets 130,000 merchant outlets across ments joint venturewhich use the Android operat- the UK where customers caning system, as well as to credit make contactless payments, in- PayPal and Softbank have an-and debit card customers of all cluding major retail chains with nounced a planned joint ventureUK banks. Orange expects to a high footfall such as Boots, Co company, to be known as Pay-announce soon the first handset -Op, Tesco and Waitrose plus Pal Japan. The new venturecompatible with Quick Tap leading food service chains like combines PayPals experience inhandsets that uses the Android EAT, McDonalds, Prêt a Man- digital payment processing withoperating system with a series of ger and Subway. Softbanks base of 29 million 17
  18. 18. Global Affinity Finance Club Affinity Bankingmobile subscribers. PayPal and mobile payments in a joint ef- and the development of relatedSoftbank plan to invest equally fort to promote the industry as a mobile payment the joint venture, with each whole. Moreover, China Mobileparty putting forward JPY 1 bil- and UnionPay also hope to de- Mobile commerce is a key focuslion (around USD 12.5 million) velop a SIM-based product area of Telefónica’s new Digitaleach. The new venture will al- which would enable the users of unit which has been formed tolow Softbank customers to virtually any phone to make mo- drive business opportunitiesmake payments via PayPal ac- bile payments including contact- within the digital space. Incounts using their mobile less payments in retail stores and Europe, Telefónica has alreadyphones at retailers and other vending machines. As part of launched a mobile wallet serviceinstitutions using the PayPal this agreement, the two compa- in the UK and is working toHere network. Hence, Japan will nies intend to launch multiple launch mobile wallet productsbecome the fifth nation to offer joint pilot projects in select cit- across its other operating busi-PayPal Here, following Austra- ies throughout China. nesses.lia, Canada, Hong Kong and theUS. Visa Europe secures mobile Telefónica has stated that it is payments partnership with committed to striking wide-Small businesses using PayPal Telefónica ranging, open partnerships withHere will also be able to accept a range of companies in order tocredit card payments via a small Visa Europe and Telefónica develop the best possible mobilecard reader linked to a smart- Digital have revealed the crea- commerce services. In additionphone, allowing businesses to tion of a wide-ranging strategic to Visa Europe, it has alsoaccept credit cards without a partnership to drive new busi- formed partnerships with Gie-separate merchant agreement. ness opportunities within mo- secke & Devrient and Sybase.There are no account fees paid bile commerce across Tele-by merchants, with a flat 5% fónica’s operations in Europe. VocaLink ties with Clairmailcharge per transaction; the card The agreement will see both for advanced mobile bankingreader itself costs approximately companies co-invest in the de- and paymentsJPY 1,200. The apps will be velopment of innovative prod-available initially for iPhone, ucts and services in areas such In the UK, payments companywith Android apps available as mobile wallets, contactless VocaLink has announced a part-shortly thereafter. payments (NFC), acquirer ser- nership with mobile banking vices for mobile point of sale, and payments firm Clairmail,UnionPay kicks off mobile and merchant offers. now part of Monitise, to offerpayments collaboration with integrated mobile banking andChina Mobile The agreement builds on the payments solutions. The part- existing relationship of Tele- nership will enable banks to useChina Mobile and UnionPay fónica and Visa Europe in mar- Clairmails Smart Client mobilehave concluded an agreement to kets such as the UK and Ireland, delivery system coupled withco-operate in the field of mobile formalising it at a Europe-wide VocaLinks real-time capabili-payments in areas including re- level and establishing Visa ties, allowing for faster paymentsearch and development, com- Europe as Telefónica’s pre- processing and delivery.mon technical standards and ferred partner for the issuancemarketing and advertising of of co-branded payment cards 18
  19. 19. Global Affinity Finance Club Affinity BankingWestern Union links with pendent institutions. Specifi- platform. Eventually, the partiesMTN for international mo- cally, the company has already plan to extend this area of co-bile payments service... launched mobile money transfer operation to other countries and services in nine countries: Bang- regions.In Uganda, Western Union has ladesh, Burkina Faso, Canada,entered into a partnership with Kenya, Madagascar, Malaysia, Western Union launches WUMTN, a mobile operator brand, the Philippines, Tanzania and Pay online payment platformfor the launch of a mobile the transfer service that al- In the US, Western Union haslows the operators customers to Indeed, Western Union also an- announced that it will launchsend and receive money on a nounced recently the launch of WU Pay, a new electronic pay-cross-border basis using just new mobile payment services in ments platform that aims to im-their mobile phones for the first Bangladesh with Banglalink, in prove both general customertime. This allows more than 2 Burkina Faso with Inova, and in experience and safety for indi-million customers in Uganda Madagascar with Telma. These viduals seeking to make onlineusing Mobile Money, MTN’s three launches follow four new payments or to transfer money transfer service, strategic alliances previously an- The new WU Pay platform al-to add funds to their accounts nounced at the Mobile World lows online shoppers in the USsent through Western Union’s Congress in Barcelona. to pay for purchases from theirsystem. The new service also existing bank accounts or inenables MTNs customers to ————————————-- cash at Western Union agentsend money on an international locations. WU Pay is based onbasis directly from their Mobile ONLINE PAYMENTS the eBillme platform, whichMoney accounts either for cash Western Union acquired in Oc-payout at Western Union agent Microsoft and UnionPay tie tober 2011. The service is avail-locations around the world or to for online payments in China able as a payment optionsubscribers of other selected through hundreds of onlinemobile operators with which Microsoft and UnionPay have merchant sites includingWestern Union has agreements. announced the signing of a, Kmart and Sears, and memorandum of understanding the payment option can also be... adding to a growing roster regarding online payments and used to purchase over 60 lead-of mobile money transfer other opportunities of mutual ing virtual gift cards includingagreements around the world interest in China. The two com- those of Amazon, American panies have agreed to co- Airlines, Dell and Home Depot.Generally, Western Union has operate in the field of onlinerevealed that it now has mobile payments with the expectation ————————————--money transfer agreements with of delivering increased conven-a total of 26 mobile wallet pro- ience for UnionPay cardholders RETAILER BANKINGviders in 22 countries. 20 of when purchasing Microsoftthese agreements are with mo- products and services. This ser- HSBC and M&S to offer fullbile operators, collectively repre- vice will first be enabled on Mi- retail banking services andsenting over 285 million sub- crosofts Chinese trading plat- very long opening hoursscribers, while the remaining six form, with payments organisedare with banks and other inde- via UnionPays online payment Having worked closely together 19
  20. 20. Global Affinity Finance Club Affinity Bankingsince 2004 when HSBC ac- and is the exclusive provider of press as it does not otherwisequired the M&S Money range of such units for 7-Eleven, which market charge of credit cards topayment card and loan products operates or licenses around this constituency. Students withfrom UK retail group Marks & 9,200 retail outlets across North the personalised, reloadable cardSpencer, the duo now plans to America. The new deal effec- benefit from purchase protec-launch in-store bank branches tively adds around 500 fee-free tion insurance, road assistanceand to offer a far wider range of ATMs to Scotiabanks existing and travel assistance plus vari-retail banking services to both network, which represents an ous entertainment-related cus-the existing book of around 3 increase of more than 15%. tomer offers and discounts atmillion customers and new cli- selected merchants.ents. The first M&S Bank is ex- ————————————--pected to open within Londons Secondly, it has launched a com-flagship Marble Arch store in RETAILER CARDS parable pair of prepaid cards inthe summer of 2012, with a fur- association with Office Depot, ather 50 in-store locations American Express introduces specialised retailer of officeplanned to open over the fol- prepaid cards with two major products with more than 1,100lowing two years. M&S Bank US retail chains... outlets in the US. Like the Bar-will initially offer current ac- nes & Noble products, the tem-counts and then, at a later date, In the US, American Express porary, one-time load card canmortgages. Aside from the has announced the launch of be used anywhere in the USstrength of the M&S brand, the three important new initiatives where American Express is ac-main selling point of this new in the market for co-branded cepted while the personalised,venture is that each in-store prepaid cards. reloadable product has interna-branch will precisely mirror the tional functionality with mer-opening hours of that store, Firstly, in association with book chants accepting American Ex-seven days a week, creating a retailer chain Barnes & Noble, it press.very high degree of convenience has introduced the Campus Edi-for the customer. tion prepaid card in both tem- ... and through Zynga Serve porary, one-time load and per- Rewards with a provider ofScotiabank expands ATM sonalised, reloadable versions social games servicesnetwork through deal with 7- available in more than 500 col-Eleven and Cardtronics lege bookstores which provides Finally, a prepaid card is also a college students with a spending part of the proposition thatScotiabank has disclosed that and budgeting tool that can be American Express has devel-customers in various parts of used anywhere that American oped with Zynga, a provider ofCanada (namely Alberta, British Express cards are accepted. The social games services, the main-Columbia, Manitoba, Ontario personalised, reloadable card stay of which is Zynga Serveand Saskatchewan) will soon be can be charged online through a Rewards, a loyalty program tiedable to use ATMs located within bank account, through cash to the Serve digital wallet that7-Eleven convenience stores loading via MoneyPak or at the offers in-game incentives forwithout incurring charges. Card- register at participating Barnes everyday expenditure. Specifi-tronics owns and operates more & Noble campus bookstores. cally, it allows players of Zyngasthan 50,000 ATMs in North Students constitute a new cus- FarmVille game to earn virtualAmerica and other locations, tomer target for American Ex- game cash by learning about 20
  21. 21. Global Affinity Finance Club Affinity BankingServe and signing up to receive GE Capital Retail Bank ex- CareONE credit card program,the benefits of this digital wallet. tends two tyre finance part- which began in 1997, providesIndividuals applying successfully nerships customers with payment solu-to join the Zynga Serve Rewards tions at any of more than 800program receive a Zynga Serve In the US, GE Capital Retail physical outlets across 23 statesco-branded prepaid card by Bank and the Tire Industry As- plus online via thepost. In the second half of 2012, sociation (TIA) have unveiled a orthe initiative will be broadened multi-year renewal of their pri- a number of respects includ- vate label credit card program,ing the extension of the Zynga enabling association members to Scotiabank and SportChekServe Rewards program to addi- offer finance to customers announce a new range oftional games such as CastleVille through the CarCareONE card NHL credit card productsand CityVille. network. First introduced in 1984, the TIA CarCareONE In Canada, Scotiabank hasChase extends its card issu- program provides customers launched a new co-branded Sco-ing relationship with Amazon with convenient payment op- tiaHockey NHL Visa programin North America tions for tyre replacement and in conjunction with sporting repair purchases at TIA member goods retailer SportChek. TheChase Card Services Canada and dealer locations. Cardholders credit cards can be branded ei-online retailer Amazon have can qualify for rebates, promo- ther with the official logo of anylaunched a co-branded Visa tional financing terms, e-billing NHL (National Hockey League)credit card product, which will and e-payments, and other op- team, or with the NHL shield.also feature Visa payWave con- tions and the CarCareONE card Expenditure on the new cardstactless technology. This is the is accepted nationwide by over generates SportChek rewardsecond initiative involving 6,000 participating merchants points, which can be used forChase and Amazon in North and can also be used at Exxon both online and in-store pur-America, as the companies have and Mobil gasoline locations. chases. For a limited time, addi-also been offering a similar The TIA is an association repre- tional benefits for new card-product to US consumers since senting all segments of the tyre holders include the ability to2002. Canadians using the new industry, including those that earn points at five times thecards to make purchases from manufacture, repair, recycle, sell, standard rate when making pur-the website will service or use new or retreaded chases at SportChek, and receiv-earn reward points at double the tyres, as well as suppliers or in- ing a free skate sharpening withstandard rate that applies when dividuals who furnish equip- any in-store purchase. Sport-the card is used at other retail- ment, material or services to the Chek is part of FGL Sportsers. Furthermore, for larger industry. which, via its numerous brands,qualifying purchases from Ama- is one of Canadas largest retail-zon, cardholders will gain access In a related development, GE ers of sporting goods. Note alsoto additional six-month and 12- Capital Retail Bank has also dis- that Scotiabank is the officialmonth finance options. closed a multi-year renewal to bank of both the NHL and sev- continue providing finance for eral individual teams. customers of Discount Tire, a independent tyre retailer in the US. The Discount Tire Car- 21
  22. 22. Global Affinity Finance Club Affinity BankingUnionPay enters into strate- tailer in the UK, DFS, has an-gic agreement with Shell in nounced that it is opening aChina store in Dublin as its first strate- gic move to enter the EuropeanIn China, payment card com- market. Moreover, it has chosenpany UnionPay and Shell have LaSer UK to provide retail fi-signed a strategic agreement nance for this store, as the UK-with plans to co-operate gener- based finance provider that itally in the areas of payment ac- believes to be best placed toceptance, customer loyalty pro- support multi-channel, cross-grams and card issuance. Shell border European transactions.maintains 700 petrol stations inChina and these have begun ac- ————————————--cepting UnionPay cards.————————————--RETAILER FINANCEIkano and Credit EuropeBank tie up for Russian jointventureCredit Europe Bank and IkanoGroup have started the registra-tion process for the creation ofa joint venture bank in Russia. Itis intended that the new bankwill offer financial services toIkano’s customers in Russia.Netherlands-based CreditEurope Bank has been active inRussia since 1997 and currentlyserves more than 3 million Rus-sian customers through morethan 120 branches and 8,500sales points while Ikano hasbeen active in Russia since 2006.DFS selects LaSer UK for re-tailer finance venture in Ire-landIn Ireland, the largest sofa re- 22