Global affinity finance club winter 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

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 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 winter 2013

  1. 1. AFFINITY INSURANCEBANCASSURANCEAFFINITY BANKINGGlobal AffinityFinance ClubFinaccord’s newsletter about affinity financial services worldwideWelcome back to your Club!The first three months of 2013 added up to another busy period foraffinity and corporate partnerships around the world, with a varietyof fresh and often innovative initiatives in evidence at both the na-tional and international levels.In line with the reorganisation of its troubled banking sector, Spain’sbancassurance market continues to evolve with AEGON and Avivarespectively discontinuing joint ventures with Unnim and Bankiaalbeit with both groups remaining committed to Spanish bancassur-ance through other partnerships. Meanwhile, already a leader in ban-cassurance in south-east Asia, Prudential has extended its footprintby entering into a new distribution relationship with ACLEDA Bankin Cambodia.Two important new joint ventures to comment upon in the automo-tive finance sector are those of Santander and JAC in China (for anindependent company that intends to provide finance across allautomotive brands, not just those of JAC itself), and of UniCreditand Renault Nissan in Russia (which will focus on providing financefor the Dacia, Infiniti, Nissan and Renault brands).Finally, the fast-moving world of mobile payments has seen its cus-tomary slew of initiatives including multi-country deals involvingMasterCard and Visa with Vimpelcom and Samsung, respectively.With best regards,Alan LeachDirectoraleach@finaccord.comFor our published reports,news and more please visitwww.finaccord.com2013WINTER
  2. 2. 2Global Affinity Finance Clubwww.finaccord.comAffinity Insurance News 4ASSISTANCE 4Allianz Global Assistance inks pan-European deals with Aston Martin andMazda 4Britannia Rescue wins deal for packagedroad assistance cover 4Allianz Global Assistance ties with Met-Life Amplico for medical assistanceservices 4Europ Assistance to provide tele-medicine after-care for NUEZ custom-ers 4HomeServe secures water service lineprotection deal on Long Island 4Maltese trade union members gain ac-cess to home assistance services 4HEALTH INSURANCE 5Bupa International and Jubilee joinforces to provide international healthinsurance 5DAK-Gesundheit and HanseMerkurextend partnership through to 2017 5RAC extends motor insurance partner-ship with Junction for five more years 5Aviva joins Tesco Banks personal mo-tor insurance panel 5Zurich secures affinity deal with dis-tributor focused on public sector work-ers 5Aon and Liberty Seguros renew affinityprogram with Spanish motor cyclingfederation 6NICHE INSURANCE 6ERV works for missed event insurancewith Deutsche Entrittskarten 6PRODUCT INSURANCE / WAR-RANTIES 6MAPFRE Warranty ties with Japaneseinsurer for extended warranty products6AmTrust Financial Services acquiresautomotive warranty and insurance spe-cialist 6Domestic & General announces newpan-European contract with Whirlpool6Brightstar collaborates with Trikomselfor Indonesian joint venture 7TRAVEL INSURANCE 7Allianz Global Assistance extends part-nership with Air France for three moreyears 7APRIL International Voyage concludestravel insurance distribution deal withAir Austral 7HanseMerkur wins LTUR travel insur-ance mandate 7GENERAL 7AXA collaborates for non-standardpersonal lines with UK-based MGA... 7... and with Spanish distributor specialis-ing in funeral and complementary healthcover 7—————————————Bancassurance News 8COMMERCIAL INSURANCE 8Allianz secures business insurance part-nership with Barclays 8CREDITOR INSURANCE 8Credit Life International reveals ambi-tions to broaden European footprint 8LIFE INSURANCE 8Aviva divests stake in Malaysian bancas-surance joint venture... 8... and reaches settlement with Bankiaover Spanish bancassurance joint ven-ture 8Dai-ichi Life pulls plug on joint venturewith China Huadian Corporation 9Prudential enters into life insurancepartnership with Cambodian bank 9Old Mutual takes majority stake in Nige-rian bancassurance unit 9NICHE INSURANCE 9Crédit Agricole begins marketing en-hanced legal protection cover 9GENERAL 9HSBC signs long-term European dealswith both AIG and Allianz 9AEGON terminates Unnim joint ven-ture but reaffirms long-term commit-ment to Spain 10Legal & General wins new distributiondeal with UK building society 10—————————————Table of contents
  3. 3. 3Global Affinity Finance Clubwww.finaccord.comAffinity Banking News 10AFFINITY BANK ACCOUNTS 10BBVA Compass introduces NBA-branded online accounts 10AFFINITY CARDS 10Local banks roll out affinity MasterCardprepaid cards in Zimbabwe... 10... and in Kenya 11JCB and PVBCC launch combinedidentification and prepaid card in thePhilippines 11Sberbank and Visa help to launchOlympics-themed affinity debit cards inRussia 11AFFINITY MORTGAGES 11BAWAG P.S.K. and BausparkasseWüstenrot continue long-standing co-operation 11AUTOMOTIVE FINANCE 11Santander unveils automotive financejoint venture in China 11Renault Nissan group and UniCreditcreate Russian joint venture 11BUSINESS BANKING 12Italian banking groups conclude affinitydeals with trade associations 12CO-BRANDED CARDS 12Virgin Money buys its own co-brandedcredit card portfolio from MBNA 12Aetna agrees to work with MasterCardas its preferred brand for payment cardservices 12IHG selects MasterCard as exclusivecard marquee for co-branded cards inthe US 13Chase to acquire all pre-existing Air-Tran cardholders 13Western Union and Advent Financialco-operate for Get It prepaid card 13HDFC Bank launches co-brandedcredit card in association with Indianmedia group 13INTER-BANK DISTRIBUTION 13Barclaycard to begin issuing AmericanExpress cards in the UK 13UnionPay expands co-operation withbanks and China National Travel Ser-vices 14INTERNATIONAL / DOMESTICREMITTANCES 14Western Union co-operates with threemajor retailing brands and a Canadianbank 14ICICI Bank and Tata Teleserviceslaunch remittance 14MOBILE PAYMENTS 15MasterCard introduces NFC paymentservices to Brazil with local partners 15MasterCard works with Equity Bankand Ezetap for MPOS technology inKenya 15MasterCard enters into internationalstrategic partnership with Vimpelcom...15... and links with Orange for mobilepayment services in Spain 16Samsung and Visa enter into globalalliance for mobile payments 16Customers in India and Rwanda benefitfrom Visas new global mobile moneyplatform 16Monitise sets up new initiatives in themobile payments market 17Telefónica and Vodafone form partner-ships with Wirecard for German mobilepayment services 17ICICI Bank and Aircel launch ‘MobileMoney’ service in India 17Visa facilitates migration to contactlessand mobile payments of German retail-ing group 18RETAILER CARDS 18Citi Retail Services acquires Best Buyretailer card business from Capital One18GE Capital Retail Finance secures newretailer card contracts 18TD Bank announces purchase ofHSBCs Canadian private label cardbusiness 18GENERAL 19American Express loyalty division con-cludes agreement with First Bankcard19Bankia enters into affinity bankingagreements with professional associa-tions 19
  4. 4. 4Global Affinity Finance Clubwww.finaccord.comAffinity Insurance NewsASSISTANCEAllianz Global Assistanceinks pan-European deals withAston Martin and MazdaAllianz Global Assistance hasentered into a deal with AstonMartin to provide roadside as-sistance services to the automo-tive brand’s drivers both in theUK and across 19 other Euro-pean countries. The deal willapply to both new and usedcars. The assistance firm hasalso strengthened its relation-ship with Mazda, with which ithas collaborated for many yearson products such as extendedwarranty programs and technicalhotlines, by securing a newagreement to provide threeyears of European road assis-tance to all purchasers of newMazda cars.Britannia Rescue wins dealfor packaged road assistancecoverBritannia Rescue, part of LV=,has been appointed by the Na-tionwide, the UKs largest build-ing society, to provide break-down cover to customers of itsnewly-launched, fee-paying cur-rent account FlexPlus. Underthe terms of this agreement, acomprehensive road rescue pol-icy will be provided to all cus-tomers with this account for anycar that they use when driving inthe UK and Europe. BritanniaRescue’s appointment extendsLV=’s existing partnership withNationwide as sole provider ofits motor and landlord insuranceproducts.Allianz Global Assistance tieswith MetLife Amplico formedical assistance servicesIn Poland, MetLife Amplico hasdisclosed that it has created alink with Allianz Global Assis-tance for the provision of freemedical assistance services to itscustomers. Specifically, selectedcustomers will be able to makeuse of these services with avalue of up to PLN 1,000 perevent in the case of accident,illness or even the death of aclose family member.Europ Assistance to providetele-medicine after-care forNUEZ customersIn Spain, Europ Assistance hassecured its first tele-medicinedistribution deal in the form ofa contract with NUEZ, a non-life insurance company whichoperates solely via online. Underthe terms of this agreement, Eu-rop Assistance will provide cov-erage to the 20,000 motor, mo-tor cycle and household policy-holders of NUEZ. The cover-age, which only takes effect sub-sequent to a period of hospitali-sation, consists of a daily medi-cal check-up (for up to onemonth) using a suite of devicessupplied by Europ Assistance,namely a blood pressure meter,a pulse oximeter and a set ofscales.HomeServe secures waterservice line protection deal onLong IslandIn the US, HomeServe hassigned a distribution agreementwith the Bethpage Water Dis-trict, which provides water tomore than 8,000 customers onLong Island by operating eightwells at five pumping sites in thearea. Under this deal, Bethpagecustomers will be offered theoption of taking out Home-Serves water service line protec-tion plan, which gives policy-holders access to a 24-hour hot-line and a range of accreditedcontractors in their local area. Inthe US and Canada, HomeServecurrently protects around 1 mil-lion households against water,drainage and electrical problems,plus other types of home emer-gency.Maltese trade union membersgain access to home assis-tance servicesMalta-based Middlesea Assist, asubsidiary of MAPFRE Asisten-cia, has announced that via theLaferla Insurance Agency, it hasbeen appointed to providehome assistance services to the26,000 members of the UnionHaddiema Maghqudin (UHM),one of Maltas largest trade un-Affinity Insurance
  5. 5. 5Global Affinity Finance Clubwww.finaccord.comions. Specifically, members ofthe UHM gain access to homeemergency cover for problemsrelated to the electricity and wa-ter supply, as well as glazing andlocksmith services.—————————–———HEALTH INSURANCEBupa International and Jubi-lee join forces to provide in-ternational health insuranceInternational healthcare com-pany Bupa International has an-nounced a new partnership withJubilee Insurance, one of thelargest insurance groups in EastAfrica (and not to be confusedwith the similarly-named insurerbased in the UK). This partner-ship will see Jubilee Insuranceproviding Bupa’s internationalhealth insurance products to itscustomers in Kenya, includingthe recently-launched Vital Af-rica product, an ‘emergencyonly’ plan which ensures thatcustomers can get emergencymedical treatment anywhere inAfrica.DAK-Gesundheit and Hanse-Merkur extend partnershipthrough to 2017In Germany, DAK-Gesundheit,a public health insurance pro-vider, and HanseMerkur, a pri-vate sector insurer, have an-nounced the extension of a dis-tribution agreement for the pro-vision of supplementary privatehealth insurance products untilthe end of 2017. DAK-Gesundheit has been offering its1.5 million members Hanse-Merkurs supplementary healthinsurance products since 2004;these include, among others,funeral expenses insurance, hos-pital cash plans and travel healthinsurance.—————————–———MOTOR INSURANCERAC extends motor insur-ance partnership with Junc-tion for five more yearsIn the UK, Junction, an insur-ance affinity specialist belongingto BGL Group, has announceda new five-year agreement withRAC to continue managing mo-tor insurance for new and exist-ing customers. Since the part-nership began in 2008, Junctionhas worked with RAC to designand develop all of the brandsprivate motor insurance prod-ucts, as well as to manage allcustomer interactions, resultingin significant customer growth.The next phase of the partner-ship will see Junction and RACusing the existing platform tomaximise insurer relationships,as well as launching new tech-nology-focused initiatives in abid to grow customer numberseven further. RACs desire toreward customer loyalty will bea key area of development. To-gether, Junction and RAC willlook at new ways to tap into andutilise customer and other datato drive more competitive ratesfor customers.Aviva joins Tesco Banks per-sonal motor insurance panelIn the UK, Aviva has agreed athree-year deal with Tesco Bank,the financial services arm of theeponymous supermarket chain,to provide private motor insur-ance to its customers. The dealwill see Aviva join a small panelof existing insurers to offer mo-tor insurance through TescoBank, which currently providescar insurance to over 1 millioncustomers.Zurich secures affinity dealwith distributor focused onpublic sector workersAgain in the UK, Zurich haswon a contract with the CivilService Insurance Society (CSIS)to be the sole underwriter for itspersonal lines motor insuranceproduct. It started underwritingnew business at the beginning ofMarch 2013 and has been ac-cepting renewals from the startof April. Founded in 1890, CSISis a not-for-profit organisationproviding personal lines insur-ance products to around 30,000serving and former public sectoremployees and their partners inthe UK. As well as motor insur-ance, it also provides household,Affinity Insurance
  6. 6. 6Global Affinity Finance Clubwww.finaccord.comtravel, pet, caravan and boat in-surance. All profits made byCSIS are donated to selectedcharities with links to the publicsector.Aon and Liberty Seguros re-new affinity program withSpanish motor cycling federa-tionIn Spain, Aon and Liberty Segu-ros have renewed an affinityprogram with the Real Fed-eración Motociclista Españolawhich was first established in2009. This covers motor cycletrials organised by the federationboth in Spain and other coun-tries and also the liability of rid-ers participating in them. In ad-dition, the two companies alsomaintain an agreement for asimilar program with the RealFederación Española de Auto-movilismo, which has been inplace for 26 years.—————————–———NICHE INSURANCEERV works for missed eventinsurance with Deutsche En-trittskartenIn Germany, ERV has extendedfor a further two years its part-nership for missed event insur-ance with online ticket vendorDeutsche Eintrittskarten. Cus-tomers buying event ticketsthrough the distributor are ableto acquire insurance which re-funds the ticket cost if they areunable to attend the event incertain circumstances such aspregnancy, serious injury orwork-related relocation.—————————–———PRODUCT INSURANCE /WARRANTIESMAPFRE Warranty ties withJapanese insurer for extendedwarranty productsIn Japan, MAPFRE Warrantyhas finalised an agreement withAioi Nissay Dowa Insurance, asubsidiary of the internationalMS&AD insurance group, forthe development of extendedwarranty products in the auto-motive sector. The Japanese in-surer brings long-establishedknowledge of the local marketto the deal, plus a distributionnetwork embracing around49,000 agents, 500 proprietaryoffices and 230 service centres,while MAPFRE Warrantybrings its expertise in extendedwarranty products, in particular.AmTrust Financial Servicesacquires automotive warrantyand insurance specialistAmTrust Financial Services hasannounced that its IGI Groupwholly-owned subsidiary hascompleted the acquisition of CarCare Plan from Ally Insurancefor a consideration of approxi-mately USD 70 million. CarCare Plan provides insuranceand administrative services tomajor automotive manufactur-ers for extended warranties,GAP insurance, wholesale floorplan insurance and other auto-motive-related warranty and in-surance products. Headquar-tered in the UK, Car Care Planalso has operations in Brazil andChina, plus certain countries inEurope and North America.During the next financial year,Car Care Plan is projected togenerate revenues in excess ofUSD 140 million including feeincome of more than USD 30million, and pre-tax profits ofover USD 14 million.Domestic & General an-nounces new pan-Europeancontract with WhirlpoolDomestic & General has re-vealed that it will expand its pro-vision of warranty and productprotection services with con-sumer goods manufacturerWhirlpool to multiple Europeancountries. Domestic & Generalhas provided warranty coveragefor Whirlpool goods in the UKand Ireland for over ten years,and will begin covering themanufacturers appliances inAustria, Belgium, France, Ger-many, the Netherlands and Po-land. The agreement will coverthe Bauknecht brand as well asWhirlpool itself.Affinity Insurance
  7. 7. 7Global Affinity Finance Clubwww.finaccord.comBrightstar collaborates withTrikomsel for Indonesianjoint ventureIndonesian mobile retailer anddistributor Trikomsel and mo-bile services specialist Brightstarhave announced the formationof a new joint venture to beknown as Brightstar Trikomsel.It is intended that this companywill offer value-added services inthe mobile sector, with an em-phasis on supply chain servicesfor mobile operators, retailersand manufacturers.—————————–———TRAVEL INSURANCEAllianz Global Assistance ex-tends partnership with AirFrance for three more yearsAs an extension to an agreementthat originally dates back to2006, Air France and AllianzGlobal Assistance have renewedtheir travel insurance partner-ship for a further three years.This deal in fact relates to twoseparate travel insuranceschemes: the first offers a choiceof travel policies (cancellationonly, medical only, or compre-hensive) to customers flyingfrom 20 countries; the secondrelates to the travel insuranceoffered to the 21 million mem-bers of the airlines loyalty pro-gram, Flying Blue. Similarly, Al-lianz Global Assistance has beenco-operating with Iberia for anumber of years, although it hasrecently been announced thattravel policies will henceforth bemade available to customerstravelling from the UK as wellas other points of departure.APRIL International Voyageconcludes travel insurancedistribution deal with AirAustralAPRIL International Voyagehas formed its first partnershipfor online travel insurance distri-bution with an airline by signingan agreement with Air Austral, aFrench aviation company serv-ing destinations in the IndianOcean. APRIL InternationalVoyage reports that it alreadyachieves 71% of its sales online,including sales via the websitesof both travel trade partners andits own site, and 13% of thesesales use its latest online market-ing system which it refers to asits web service.HanseMerkur wins LTURtravel insurance mandateTravel agency LTUR and Han-seMerkur have entered into athree-year partnership wherebyLTUR will offer travel insur-ance products underwritten byHanseMerkur through both itsonline travel portal and its 165branches throughout Germany,plus four other European coun-tries: Austria, France, Polandand Switzerland.GENERALAXA collaborates for non-standard personal lines withUK-based MGA...In the UK, the commercial linesand personal intermediary armof AXA has entered into an ex-clusive five-year capacity dealworth GBP 150 million withPrestige Underwriting Services,a managing general agent(MGA). The tie will see AXAprovide Prestige with capacity tounderwrite non-standard house-hold and motor products andprovides a further way for AXAto meet its stated aim of ex-panding activity in the UK per-sonal lines market. The dealbuilds on AXAs existing part-nership with Prestige, whichprovides a range of non-standard household and motorproducts sold through morethan 500 brokers.... and with Spanish distribu-tor specialising in funeral andcomplementary health coverAXA has also created an inno-vative new distribution partner-ship in Spain with Paraíso Uni-versal, a company based inMalaga that specialises in funeraland complementary health(assistance, sickness and acci-dent) insurance. The arrange-ment means that Paraíso Uni-versal can now broaden itsproduct offer to householdcover and eventually to otherAffinity Insurance
  8. 8. 8Global Affinity Finance Clubwww.finaccord.comrelatively simple insurance prod-ucts including commercial lines,hunting liability, long-term care,low-cost health, motor, and riskand savings-related life.—————————–———Bancassurance NewsCOMMERCIAL INSURANCEAllianz secures business in-surance partnership with Bar-claysIn the UK, Allianz and Barclayshave launched a partnership toprovide commercial insurancepackages for the banks smalland medium-sized business cus-tomers. Under the new arrange-ment, Allianz Commercial willunderwrite tailored packageswith available cover optionsranging from standardised smallbusiness insurance policies tospecialist areas, such as engi-neering, goods-in-transit andmarine. Allianz will also providea branded sales, service andclaims capability for all newbusiness operated from newpremises in Lancaster. The com-pany expects to recruit as manyas 80 employees as part of thisdedicated operation during2013.—————————–———CREDITOR INSURANCECredit Life International re-veals ambitions to broadenEuropean footprintCreditor insurance specialist,Credit Life International, whichis co-owned by RheinLand Ver-sicherungsgruppe and Talanx,has disclosed a pan-Europeanexpansion plan, guaranteeingmarket coverage in all majorcountries in the near future.—————————–———LIFE INSURANCEAviva divests stake in Malay-sian bancassurance joint ven-ture...Aviva has announced the sale ofits 49% interest in CIMB AvivaAssurance and CIMB Aviva Ta-kaful Berhad (collectivelyknown as CIMB-Aviva) to SunLife Assurance Company ofCanada, a subsidiary of Sun LifeFinancial, for a consideration ofGBP 152 million payable incash. CIMB-Aviva is a joint ven-ture between Aviva and CIGBerhad, which is ultimatelyowned by CIMB, one of Malay-sia’s leading financial groups andparent of CIMB Bank, one ofthe same countrys largest banks.According to Aviva, the transac-tion represents further progressin narrowing the groups focusto businesses and markets whereit enjoys positions of leadershipand is able to generate attractivereturns with a high probabilityof success.Moreover, in a related transac-tion, CIMB has agreed to sellthe majority of its interest inCIMB-Aviva to Khazanah Na-sional, the government of Ma-laysia’s strategic investmentfund. CIMB will become a mi-nority shareholder although willcontinue its distribution rela-tionship with the company.... and reaches settlementwith Bankia over Spanishbancassurance joint ventureIn another development in in-ternational bancassurance in-volving Aviva, the insurancegroup has disclosed that it hasreached a settlement withBankia by means of whichAviva will transfer its entireholding in Spanish joint ventureAseval to Bankia for EUR 608million, which will be held inescrow. The transfer of sharesin Aseval to Bankia is subject tocustomary regulatory approvalsand release of the cash proceedsto Aviva is expected no laterthan the end of April 2013. As aresult of the settlement, Avivaand Bankia have applied to thearbitration court in Spain to ter-minate the legal proceedingsbetween the parties and to issuean award which reflects the set-tlement agreed.Bancassurance
  9. 9. 9Global Affinity Finance Clubwww.finaccord.comAviva’s other operations inSpain are unaffected by the set-tlement. Aviva will continue toserve over 1.2 million customersin the country through bancas-surance partnerships with BMN,Caja España Duero, NCGBanco and Unicaja, as well asthrough agency distributionunits Aviva Vida y Pensionesand Pelayo Vida. Aviva Spaingenerated sales of GBP 1.93billion and an IFRS life operat-ing profit of GBP 216 million in2011, of which Aseval contrib-uted sales of GBP 393 millionand an IFRS life operating profitof GBP 88 million.Dai-ichi Life pulls plug onjoint venture with ChinaHuadian CorporationDai-ichi Life has announcedthat it has mutually agreed withChina Huadian Corporation todiscontinue plans for their jointventure life insurance companyin China. Since the signing ofthe initial joint venture basicagreement, Dai-ichi Life andChina Huadian Corporationhave been working together toform a joint life insurance busi-ness in China. However, it be-came clear that there were dif-ferences in the two partners’views with regards to strategy,including the business plan forthe new company, hence finalagreement was not reached.Prudential enters into life in-surance partnership withCambodian bankIn Cambodia, Prudential haslaunched a life insurance busi-ness through a wholly-ownedsubsidiary, Prudential Cambo-dia. As a part of its market entrystrategy, Prudential Cambodiaand ACLEDA Bank, the largestretail and commercial bank inCambodia, have announced theestablishment of a long-termdistribution partnership, the firstof its kind in the country. Spe-cifically, ACLEDA Bank willpromote Prudential’s productsvia its network of 238 branchesnationwide. Moreover, Pruden-tial’s own sales staff will be lo-cated within the banks branchesto provide appropriate advice tocustomers about life insurance.Old Mutual takes majoritystake in Nigerian bancassur-ance unitIn Nigeria, Old Mutual hascompleted the acquisition of amajority stake in Oceanic Life,the life assurance arm of theformer Oceanic Bank, subse-quently acquired by Ecobank.The acquisition has been madeto expand Old Mutuals offeringto the Nigerian market where itconsiders that there are goodprospects for further develop-ment—————————–———NICHE INSURANCECrédit Agricole begins mar-keting enhanced legal protec-tion coverIn France, a non-life insurancearm of the Crédit Agricolegroup, Pacifica, has begun to selllegal protection cover throughboth LCL, a retail bankingbrand belonging to the group,and through the Crédit Agricolenetwork itself. This policy hasbeen enhanced in accordancewith the recommendations ofthe FFSA, the association ofFrench insurance companies.Specifically, it now covers twonew areas: litigation related todisability (guardianship and trus-teeship); and disputes arisingunder laws related to parentage(such as adoption and paternity).Moreover, two existing areas ofcoverage have been expanded,for disputes relating to inheri-tance and disputes about prop-erty taxes.—————————–———GENERALHSBC signs long-term Euro-pean deals with both AIG andAllianzAs part of its on-going strategyto withdraw from insurance un-derwriting activities, HSBC hasentered into a ten-year bancas-surance agreement with AIG,through which HSBC groupBancassurance
  10. 10. 10Global Affinity Finance Clubwww.finaccord.comcompanies will distribute AIGsnon-life insurance products tocustomers in France, Turkeyand other European countries asmay be agreed in the future. Thearrangements for the distribu-tion of products in France andTurkey will be on an exclusivebasis.Equally, various HSBC groupcompanies will also enter intoten-year bancassurance dealswith Allianz for the distributionof life insurance products inTurkey and certain other Euro-pean markets as may be agreed.Under both of these bancassur-ance agreements, which are ex-pected to be finalised in the firsthalf on 2013, AIG and Allianzsubsidiaries will pay commis-sions on product sales and makeother payments to HSBC groupcompanies in line with the reve-nues generated.AEGON terminates Unnimjoint venture but reaffirmslong-term commitment toSpainIn Spain, AEGON has reachedan agreement to exit its life,health and pensions joint ven-ture with Unnim, a banking net-work owned by BBVA, by sell-ing its 50% stake in the com-pany for a total consideration ofEUR 353 million. In essence,this divestment by AEGON is aconsequence of the consolida-tion underway within the Span-ish banking sector. However,AEGON has stated that itmaintains a long-term commit-ment to Spain as evidenced byits joint venture with Santanderto distribute life and general in-surance products through itsnetwork of 4,600 bankbranches. Indeed, this long-termalliance, announced in Decem-ber 2012, provides access to apotential client base of 12 mil-lion individuals across the coun-try.Legal & General wins newdistribution deal with UKbuilding societyIn the UK, Legal & General hasannounced a new joint distribu-tion agreement with the HanleyEconomic (a building society)for the provision of protection-related life and general insuranceproducts. Specifically, the Han-ley Economic will sell the in-surers products in these twocategories throughout its branchnetwork on a directly authorisedbasis.—————————–———Affinity Banking NewsAFFINITY BANK AC-COUNTSBBVA Compass introducesNBA-branded online ac-countsIn the US, BBVA Compass hasintroduced bank accounts co-branded in partnership with theNational Basketball League. Thenew products, which carry theNBA Banking brand, includeonline-only checking and sav-ings accounts that are integratedwith smartphone applications.The new products represent anextension of the ongoing spon-sorship of the NBA by BBVACompass.—————————–———AFFINITY CARDSLocal banks roll out affinityMasterCard prepaid cards inZimbabwe...In Zimbabwe, FBC Bank haslaunched an affinity MasterCardprepaid card aimed at membersof the Zimbabwean Associationof Chartered Certified Account-ants (ACCA). ACCA membersdo not require a bank accountto apply for the prepaid card,and are able to pay tuition andexam fees, monitor their bal-ances, track spending anddownload statements via theFBC Bank online portal. Addi-Affinity Banking
  11. 11. 11Global Affinity Finance Clubwww.finaccord.comtionally, members will be able touse their cards at any of the 33million merchants worldwidethat accept MasterCard and at1.3 million MasterCard-brandedATMs located around theworld.... and in KenyaIn Kenya, Chase Bank and theUniversity Students CommunityOrganisation (UNISCOO) haveunveiled a new MasterCard pre-paid card available to the mem-bers of the latter body. Amongthe broader aims of the productare to extend financial inclusionto a higher proportion of thekey market for consumers agedfrom 15 to 29 in a country inwhich around one third ofadults are excluded from thebanking system. Topping up thecard can be carried out at anybranch of Chase Bank as well asthrough either Airtel Money orM-Pesa at no additional cost.The card also acts as an ID cardfor all UNISCOO members andprovides access to discounts at arange of merchants, endowing itwith extra advantages relative toother products in the market.JCB and PVBCC launch com-bined identification and pre-paid card in the PhilippinesIn the Philippines, PVB CardCorporation (PVBCC) and JCBInternational have launched anew prepaid card which simulta-neously functions as an ID cardfor residents of the city of Ba-coor. With the aim of issuingaround 500,000 cards, thePVBCC-JCB SBR Card is de-signed specifically for the resi-dents, employees, officials andsenior citizens of Bacoor.Sberbank and Visa help tolaunch Olympics-themed af-finity debit cards in RussiaIn Russia, the countrys OlympicCommittee is working withSberbank and Visa to launch anew range of Classic OlympicTeam affinity debit cards. Thesecards, which can only be linkedto accounts denominated in lo-cal currency and that are validfor three years, are being distrib-uted by Sberbank to its custom-ers. Cardholders will have freeaccess to mobile and onlinebanking and will also be en-rolled in the banks Thank Youloyalty program. 50% of the ser-vice fee for the first year is beingdonated to the Olympic Com-mittee.—————————–———AFFINITY MORTGAGESBAWAG P.S.K. and Bauspar-kasse Wüstenrot continuelong-standing co-operationIn Austria, BAWAG P.S.K. andbuilding society BausparkasseWüstenrot have stated that theywill continue their current part-nership until 2017. As such,BAWAG P.S.K. will carry onpromoting BausparkasseWüstenrots mortgage contractsto its 1.4 million clients. Indeed,these two companies haveworked together in this way forthe last 40 years.—————————–———AUTOMOTIVE FINANCESantander unveils automotivefinance joint venture in ChinaIn China, Santander and AnhuiJianghuai Automobile (JAC)have launched Fortune AutoFinance, a joint venture, ownedin equal proportions by the twofirms, that intends to act as anindependent provider in thecountrys automotive financesector. The initiative aims tocombine Santanders extensiveinternational experience in auto-motive finance with JACs localknowledge of the automotivesector as evidenced by its sale ofaround 448,000 new carsthrough a network of over 1,000dealers in 2012. Moreover, itsees ample scope for growth ina market in which around 19million new cars were sold dur-ing the same year.Renault Nissan group andUniCredit create Russianjoint ventureIn Russia, the Renault Nissangroup and UniCredit havesigned an agreement to establishAffinity Banking
  12. 12. 12Global Affinity Finance Clubwww.finaccord.coma dedicated automotive financecompany offering financial ser-vices to both the customers ofRenault and Nissan, plus Infin-iti, and their dealers. The Ren-ault Nissan group will own 60%of the joint ventures equity withUniCredit holding the remaining40%. The partners anticipatethat the joint venture will beoperational by the end of 2013and ready to take advantage ofopportunities in a market inwhich around 2.9 million newvehicles were sold in 2012 andin which the Renault Nissangroup held a market share ofaround 12%. These two part-ners have already co-operated inthe same context since 2007 inCroatia, the Czech Republic,Hungary and Slovakia.—————————–———BUSINESS BANKINGItalian banking groups con-clude affinity deals with tradeassociationsThree of Italys largest bankinggroups have entered into affinitydeals for business banking ser-vices with major trade associa-tions and related bodies.Specifically, Intesa SanPaolo hasreached an agreement with Con-findustria to support the inter-national development of ItalianSMEs with a fund worth EUR10 billion of which EUR 200million is available for start-upprojects. Indeed, Intesa San-Paolo and Confindustria havebeen co-operating since 2009.Meanwhile, Veneto Banca hassigned a series of agreementswith trade associations includingthe Agenzia Veneta per i Paga-menti in Agricoltura (AVEPA),Confindustria Udine, Confin-dustria Vicenza, Finest, the So-cietà Italiana per le ImpreseallEstero (SIMEST), TrevisoGlocal and Unindustria Treviso,also with the aim of supportingthe international expansionplans of SMEs in the Venetoregion.BNL, the main banking arm inItaly of BNP Paribas, has alsosigned several comparableagreements including those withConfesercenti, Confidi RegioneCampania, Confindustria Trentoand the Consorzio Nazionale diSostegno e Sviluppo delle Ga-ranzie (Cosvig). In the first andlast cases combined, the fundsbeing made available amount toEUR 1 billion.—————————–———CO-BRANDED CARDSVirgin Money buys its own co-branded credit card portfoliofrom MBNAIn the UK, Virgin Money hasannounced that it will launch itsown credit card business follow-ing an agreement to buy GBP 1billion of assets from the VirginMoney credit card portfolio ofMBNA, a subsidiary of Bank ofAmerica. Virgin Money beganits credit card partnership withMBNA in 2002 but has decidedto launch its own credit cardssince its acquisition of NorthernRock has turned it into a fully-fledged bank. The acquiredcredit card book will be trans-ferred fully to Virgin Money’sown operations in early 2014.Until then, existing customerswill continue to be serviced byMBNA, along with any newcustomers who choose a Virgincredit card. Virgin Money’scredit card operation will bebased in Gosforth, near New-castle-upon-Tyne, and is ex-pected to create at least 150 newjobs.Aetna agrees to work withMasterCard as its preferredbrand for payment card ser-vicesIn the US, Aetna and Master-Card have disclosed thatMasterCard has become the pre-ferred payment brand forAetna’s card services. The agree-ment applies to Aetna’s HealthCare Flexible Spending Ac-counts (FSAs), Health SavingsAccounts (HSAs), Health Reim-bursement Arrangements(HRAs) and prepaid storedvalue cards for dental, visionand disability payment services,such as the Aetna ValuePass SMCard. The latter is the first pre-Bancassurance
  13. 13. 13Global Affinity Finance Clubwww.finaccord.compaid card that helps consumersto pay for dental care when theyneed it and with no insuranceplan or membership fees re-quired. Aetna acquired benefitsadministrator PayFlex SystemsUSA in 2011 and is now lever-aging the pre-existing relation-ship between MasterCard andPayFlex to offer healthcare cus-tomers access to secure cardservices.IHG selects MasterCard asexclusive card marquee for co-branded cards in the USIn the US, MasterCard has un-veiled a new multi-year agree-m e n t w i t h I H G(InterContinental HotelsGroup) whereby MasterCardbecomes the exclusive card mar-que used for IHG’s hotel loyaltyrewards co-branded credit cardportfolio. The deal also includesa range of marketing, loyalty andinnovation initiatives andstrengthens the relationship be-tween the two organisationswhich also includes the PriorityClub World MasterCard co-branded card program in Can-ada. IHG claims that its PriorityClub Rewards scheme is theglobal hotel industry’s largestand fastest-growing guest loyaltyprogram.Chase to acquire all pre-existing AirTran cardholdersFurther to the launch in the USof the new AirTran A+ Rewardscredit card program by ChaseCard Services (which also man-ages the equivalent program forAirTrans parent company,Southwest Airlines), it has beenannounced that all regular Air-Tran cardholders – whose cardsand accounts have hitherto beenissued and managed by Barclays– will be transitioned to the newAirTran A+ program. From theend of April 2013, all of theseaccounts will be owned and op-erated by Chase, and new creditcards will be issued to all cus-tomers. This is viewed as thenext stage in the processthrough which two distinct air-lines with two separate card is-suers are becoming one airlineoperating a consolidated loyaltycard program.Western Union and AdventFinancial co-operate for GetIt prepaid cardIn the US, Western Union hasteamed up with Advent Finan-cial to offer customers fasteraccess to their state and federalincome tax refunds through theuse of prepaid cards. Individualsfiling their federal and state taxreturns at offices using AdventFinancial can elect to receivetheir refunds on the Get It pre-paid card, a reloadable prepaidcard developed jointly by Ad-vent Financial and Western Un-ion.HDFC Bank launches co-branded credit card in asso-ciation with Indian mediagroupIn India, Times Internet, thedigital arm of The Times of In-dia Group has partnered withHDFC Bank, India’s secondlargest private sector bank, tolaunch Times Card, an exclu-sive, co-branded MasterCardcredit card that provides cus-tomers with a range of discountsand deals on dining, movies andshopping. The credit card hasbeen designed specifically tocater to the lifestyle and enter-tainment needs of young profes-sionals aged between 24 and 38.The Times Card will belaunched in eight Indian citiesand will be available in platinumand titanium versions.—————————–———INTER-BANK DISTRIBU-TIONBarclaycard to begin issuingAmerican Express cards inthe UKAmerican Express and Barclay-card have announced that theyhave agreed to expand the scopeof their current global relation-ships with Barclaycard becom-ing a card-issuing partner ofAmerican Express in the UK.This builds upon their existingrelationships and will enableBarclaycard to issue cards ac-Affinity Banking
  14. 14. 14Global Affinity Finance Clubwww.finaccord.comcepted on the American Expressglobal network in the UK forthe first time. Barclaycard andAmerican Express already havea number of business relation-ships around the world, includ-ing in the US for card issuing,and the UK for acceptance ofpayments. The new UK card-issuing agreement will increasethe choice available to Barclay-card customers and will lead to awider range of products beingoffered to UK consumers. Bar-claycard and American Expresswill commence product devel-opment during 2013, with prod-uct details being announced at alater point.UnionPay expands co-operation with banks andChina National Travel Ser-vicesChinese payment card brandUnionPay has entered into arange of new agreements withpartners including ANZ, Citi-bank, China National TravelServices (CNTS), KasikornBank, Korea Exchange Bank(KEB) and Krung Thai Bank.ANZ, Kasikorn and KEB haveall agreed to begin acceptingUnionPay cards for online pay-ments. Additionally, ANZ, Citi-bank and Krung Thai have an-nounced plans to issue Union-Pay cards, with ANZ and KrungThai introducing UnionPaydebit cards, and Citibank andUnionPay offering a new busi-ness card, developed jointly.Meanwhile, the agreement withtourism group CNTS will seeUnionPay acceptance increase inall areas of travel and tourismthroughout China, and will alsoinvolve other cross-promotionalactivity between the two compa-nies.—————————–———INTERNATIONAL / DO-MESTIC REMITTANCESWestern Union co-operateswith three major retailingbrands and a Canadian bankWestern Union has released de-tails of several new arrange-ments for the provision of inter-national remittance servicesthrough major retailing brands.Specifically, Western Unionglobal money transfer and billpayment services are beingmade available at 330 Walmartlocations in Canada, as well as at120 Carrefour outlets in Argen-tina. In addition, Safeway super-markets in both Canada and theUS will continue to offer West-ern Union transfer capabilities atover 1,600 locations, as the par-ties have extended their agree-ment for a further five years,while adding money orders andbill payment to the services onoffer.Western Union has also dis-closed that customers of BMOBank of Montreal will have ac-cess to its network to send inter-national payments from theirlaptop or desktop computers viaa platform designed by elec-tronic payment services groupAcxsys.Finally, in Austria, Western Un-ion is making international re-mittance services available inselected branches of Erste Bankund Sparkasse. Moreover, infuture, Western Union transferswill be available not only atbranches, but also via onlinebanking and other self-servicefacilities. The partnership is be-ginning as a pilot project atseven branches of Erste Bankund Sparkasse but by the end of2013 is expected to take effectacross the majority of the banksoutlets.ICICI Bank and Tata Tele-services launch remittanceIn India, ICICI Bank and MMPMobi Wallet Payment Systems, awholly-owned subsidiary of TataTeleservices and one of thecountrys leading mobile net-work operators, have launched ajointly-developed money trans-fer service. With the introduc-tion of this service, customerscan organise remittances inMMP retail stores. Funds willthen be transferred to the bankaccount of the payee using theavailable electronic fund transfermechanisms. The money trans-fer service is being launched inDelhi and Mumbai to beginwith and will then be rolled outAffinity Banking
  15. 15. 15Global Affinity Finance Clubwww.finaccord.comacross other parts of the coun-try.—————————–———MOBILE PAYMENTSMasterCard introduces NFCpayment services to Brazilwith local partnersMasterCard has announced thelaunch of NFC payment ser-vices in Brazil, using its MobilePayPass technology. The pro-ject, launched in partnershipwith Gemalto, Itaú, Redecardand TIM, is intended to provideconsumers with greater conven-ience and speed when shopping,through a more secure, intelli-gent and simple payment op-tion. In particular, using MobilePayPass, a consumer can simplytap a PayPass-enabled smartphone onto the merchant’sNFC-enabled point-of-sale ter-minal from Redecard, and thepayment is made instantane-ously. Purchases are charged toa virtual account stored in theaccount holder’s smartphoneand billed via the accountholder’s statement issued byItaú, in a manner very similar tothe way in which traditional pay-ment card transactions are billedalready. The solution is thoughtto be ideal for environmentswhere speed is essential, such asdrugstores, fast food restau-rants, fuel outlets, movie thea-tres, public transportation andvending machines, among oth-ers.MasterCard works with Eq-uity Bank and Ezetap forMPOS technology in KenyaIn Kenya, MasterCard has an-nounced that it is working withEquity Bank and Ezetap, a com-pany whose products are usedalready in India, for the intro-duction of mobile point-of-sale(MPOS) technology which isdesigned to help merchants andother businesses to boost salesthrough enhanced acceptance.In particular, the technology willallow Kenyan retailers who pre-viously operated on a cash-only-basis, to use mobile phones aspoint-of-sale terminals and toaccept electronic payments. Aninitial pilot project will be tar-geted at selected retail outletsand this will give Equity Bankthe necessary data to implementa more in-depth countrywideroll-out at a later point in time.Ezetaps MPOS solution in-cludes three components: a mo-bile phone, the MPOS cardreader payment application andthe Ezetap MPOS card readerthat plugs into the mobile hand-set. The card reader allows theretailer to swipe debit, credit orprepaid cards, and the paymentsolution is considered inexpen-sive to deploy, offering thesafety and convenience of cash-less transactions.Separately, MasterCard and Eq-uity Bank have also finalised anagreement to issue around 5million debit and prepaid cardsduring 2013 and the first half of2014. As a result of the partner-ship, MasterCard debit and pre-paid cards with chip-enabledtechnology will be issued firstinto the Kenyan market andthen extended into Rwanda,South Sudan, Tanzania andUganda, signalling the largestroll-out of EMV payment cardsin sub-Saharan Africa to date.MasterCard enters into inter-national strategic partnershipwith Vimpelcom...MasterCard and VimpelComhave announced a strategic part-nership combining the cardbrands mobile payments tech-nology and solutions with thetelecoms groups globally-integrated services. It is in-tended that the partnership willprovide payment solutions to anew generation of individuals,both banked and under-served,among VimpelCom’s 212 mil-lion customers in 18 countries.A prepaid program in Italy forWind Italy’s customers will bethe first program to launch in2013. Thereafter, the two part-ners hope that further countryand market deployments willleverage their full range of capa-bilities.Affinity Banking
  16. 16. 16Global Affinity Finance and links with Orange formobile payment services inSpainIn Spain, MasterCard and Or-ange have announced the sign-ing of a strategic agreement toenhance and accelerate the de-livery of innovative mobile pay-ment services. The main goal ofthis agreement is to develop,deliver and deploy the latest inmobile payments technologies,ensuring that Orange privateand business customers in Spainbenefit from advanced paymentsolutions.Samsung and Visa enter intoglobal alliance for mobilepaymentsSamsung and Visa have an-nounced a global alliance thatcombines the latters expertise inpayments with the formersstrength in mobile device tech-nology. The two partners be-lieve that this alliance has thepotential to significantly acceler-ate the availability of mobilepayments globally. Specifically,financial institutions that areplanning to launch mobile pay-ment programs will be able touse Visas mobile provisioningservice to securely downloadpayment account information toNFC-enabled Samsung devices.In addition, Samsung has agreedto load the Visa payWave appletonto its mobile devices featuringNFC technology. Visa payWaveis Visa’s mobile payment appletthat enables consumers to makewave-and-pay contactless pay-ments using mobile devices.Separately, Visa has launched itsReady Partner Program which isdesigned to accelerate the intro-duction of innovative paymentsolutions globally and to furtherdrive the global migration fromcash to electronic payments. Inparticular, this program aims topave the way for mobile devicemanufacturers, mobile networkoperators, technology partnersand others to navigate more eas-ily the complexities of the pay-ments eco-system and to gainaccess to Visa intellectual prop-erty, licenses and best practices.For financial institutions andmerchants, the program willmake it simpler for them toadopt new payment methodsthat are approved by Visa andthat can help them to drive busi-ness growth by expanding theuse and acceptance of electronicpayments globally.Customers in India andRwanda benefit from Visasnew global mobile moneyplatformVisa has announced the launchof a new plug-and-play mobilemoney platform designed tomake it easier and more cost-efficient for financial institutionsand mobile operators to offermobile financial services to con-sumers. The new platform,which is being hosted in datacentres managed by Visa, is builton mobile money technologydeveloped by Fundamo and ac-quired by Visa in 2011, whichhas been successfully deployedin more than 30 countries.Visa claims that the global plat-form is the worlds first bank-grade managed service for mo-bile money meaning that it en-ables it to host and fully manageall aspects of a mobile moneyprogram on behalf of the pro-vider, from user interface designto consumer enrolment, transac-tion processing, authorisation,clearing and settlement. Thenew service can enable domestic-only or globally interoperablemobile money services.Unbanked consumers in Indiaand Rwanda are the first tobenefit from the service. Aircelmobile subscribers in India andcustomers of Bank of Kigali andUrwego Opportunity Bank inRwanda now have access to afinancial account that is linkedto their mobile phone number.For transactions at agent loca-tions, paying bills, sendingmoney to relatives, topping upair time and buying train tickets,customers of these institutionscan now take advantage of bank-grade financial services andVisa-quality payments.Affinity Banking
  17. 17. 17Global Affinity Finance Clubwww.finaccord.comMonitise sets up new initia-tives in the mobile paymentsmarketMobile payments companyMonitise has announced a seriesof new partnerships with banks,payment networks and mobilephone manufacturers, includingBlackBerry, BMO Bank, CGI,PermataBank and Visa Europe.With regards to the latter initia-tive, Monitise and Visa Europehave unveiled a three-year agree-ment for the development anddeployment of mobile moneypayment and commerce solu-tions. The agreement covers li-cence rights to all aspects ofMonitise’s mobile technologyand incorporates minimumrevenues to Monitise of EUR 45million over the first three years;Visa Europe owns 7.5% of theequity of Monitise.Elsewhere, Monitise has teamedup with Indonesian bank Per-mataBank and mobile manufac-turer BlackBerry to launch anew mobile wallet, BBM Money.Using the new service, custom-ers are able to make instant pay-ments to other BlackBerrysmartphone users as well asmaking airtime purchases andtransferring funds to bank ac-counts. BBM money was devel-oped by PT AGIT Monitise In-donesia, a joint venture betweenMonitise Asia Pacific and AstraGraphia Information Technol-ogy.In addition, Monitise and busi-ness process firm CGI have dis-closed an undertaking to de-velop the mobile payment andbanking services of Monitise,specifically as they relate toEuropean retail banks. Finally,Monitise has also announced therenewal and extension of its mo-bile money partnership withBMO Bank of Montreal.Telefónica and Vodafoneform partnerships with Wire-card for German mobile pay-ment servicesIn Germany, mobile telecomsgroups Telefónica and Voda-fone have both formed agree-ments with e-commerce tech-nology specialist Wirecard forthe provision of mobile pay-ment services. Wirecard will beresponsible for the managementof mobile payment services forVodafone in Germany as well asfor issuing virtual and physicalco-branded Visa cards for themobile group. The products areexpected to be launched later in2013. Additionally, Telefónicahas begun offering NFC-basedcontactless payments throughmobile handsets in Germany,also managed by Wirecard.ICICI Bank and Aircellaunch ‘Mobile Money’ ser-vice in IndiaIn India, ICICI Bank, the coun-trys largest private sector bank,and Aircel, a leading mobile op-erator, have announced thelaunch of a mobile banking ser-vice known as Mobile Money.Designed especially for the un-banked population, this will en-able customers to transfermoney in a safe, secure and in-stantaneous manner throughtheir mobile phones. For a ma-jority of the unbanked popula-tion in India it is difficult totransfer money due to the lackof branches or ATMs close tothem. However, the new serviceaims to advance financial inclu-sion by offering a range of fi-nancial services such as depositsand cash withdrawals, moneytransfer to third parties, self-reload of prepaid mobile credit,and the ability to make utility billpayments.Boku and U.S. Cellular an-nounce mobile paymentspartnershipIn the US, Boku has disclosedthat it has become a partner ofU.S. Cellular, providing mobilepayments services which allowcustomers of the mobile opera-tor to add purchases directly totheir mobile bills. The service isavailable to customers of U.S.Cellular across 26 states.Affinity Banking
  18. 18. 18Global Affinity Finance Clubwww.finaccord.comVisa facilitates migration tocontactless and mobile pay-ments of German retailinggroupDouglas Group, a retailing or-ganisation in Germany with in-terests across a range of catego-ries including books, confec-tionary, fashion, health andbeauty, and jewellery, has an-nounced that it has begun ac-cepting contactless and mobilepayments across all of its stores.After a pilot in December 2012,the changeover of terminals be-gan in 2013 and was completedby the end of first quarter. Thismeans that customers are nowable to pay more rapidly usingVisa cards and smartphonesacross all of its stores. More-over, for amounts up to EUR25, no PIN or signature is re-quired.—————————–———RETAILER CARDSCiti Retail Services acquiresBest Buy retailer card busi-ness from Capital OneIn the US, Citigroup has an-nounced that its Citi Retail Ser-vices unit will enter into a strate-gic agreement with Best Buy toissue and manage co-brandedcards in the US. In addition, Citihas also reached an agreementwith Capital One to acquire card-related lending balances of ap-proximately USD 7 billion at-tributable to Best Buys privatelabel and co-branded card pro-grams. Both deals are antici-pated to close in the third quar-ter of 2013.Citi Retail Services providesconsumer and commercial creditcard products, services and retailsolutions to both national andregional retailers across NorthAmerica. The business servicesnearly 90 million accounts for anumber of brands, includingExxonMobil, Macys, Sears,Shell and The Home Depot.Meanwhile, Best Buy is a leaderin consumer electronics and CitiRetail Services regards it as an-other important retail sectorpartner to add to its portfolio.GE Capital Retail Financesecures new retailer card con-tractsAlso in the US, GE Capital Re-tail Finance has concluded a trioof agreements in the retailercard sector. These include: arelationship with American Sig-nature, a home furnishings re-tailer with 126 locations acrossthe country trading either asAmerican Signature Furniture orValue City Furniture); a linkwith the Thomas Kinkade Com-pany, a firm promoting worksby the artist of the same namethrough more than 350 galleriesand approved dealers; and therenewal of a contract withjcpenney, first signed in 1999,which benefits consumers shop-ping at over 1,100 stores acrossthe US and Puerto Rico, as wellas through the retail brandswebsite.Separately, GE Capital RetailFinance has released researchthat underscores the potentialbenefits of private label and co-branded credit cards to retailchains. According to the re-search, customers that use re-tailer cards make more frequentstore visits, increasing from 1.4per month to 1.7 per month.They also make purchases witha typical value of between 40%and 80% higher than customerspaying via other methods andare 72% more likely to makerepeat purchases over time.Moreover, further benefits toretailers are that they make asaving of between 2% and 4%on interchange fees and capturebetter information about theircustomers.TD Bank announces pur-chase of HSBCs Canadianprivate label card businessIn Canada, HSBC has agreed tosell its consumer private labelcredit card portfolio to TDBank Group in a deal worth ap-proximately CAD 495 million.This constitutes part of HSBCsongoing global strategy to divestitself of various ancillary busi-nesses (mainly in the form ofinsurance subsidiaries and creditcard portfolios) in order to fo-cus on what it considers to beAffinity Banking
  19. 19. 19Global Affinity Finance Clubwww.finaccord.comits core retail and commercialbanking activities. The sale isexpected to be completed in thethird quarter of 2013. TD is thesixth-largest bank in NorthAmerica by number ofbranches, and serves approxi-mately 22 million customers.—————————–———GENERALAmerican Express loyalty di-vision concludes agreementwith First BankcardLoyaltyEdge, a divisionlaunched in 2010 that formspart of the enterprise growthgroup within American Express,has announced that it has joinedforces with First Bankcard, adivision of First National Bankof Omaha, to manage FirstBankcard’s rewards programsand to provide enhanced op-tions to the banks rewards cus-tomers. Through this agree-ment, First Bankcard has imple-mented an improved user inter-face for its rewards websites,and will receive enhanced pro-gram management capabilities.The new rewards features arenow available to First Bankcardcustomers participating in theMaximum Rewards, RewardsAdvantage and First AirMilesprograms, among others.Bankia enters into affinitybanking agreements withprofessional associationsIn Spain, Bankia has announcedthe creation of affinity bankingagreements with four regionalprofessional associations,namely the Colegio deAbogados de Alicante, the Cole-gio de Farmacéuticos de Sego-via, the Colegio de IngenierosSuperiores Industriales de laComunidad Valenciana and theColegio Oficial de IngenierosTécnicos Industriales de Ali-cante. Under the agreements,the organisations members willbe entitled to special offers asso-ciated with Bankias productsand services, including reducedfees on credit cards and currentaccounts, discounted mortgagerates, preferential deposit rates,and special investment and pen-sion plans.—————————–———Affinity Banking
  20. 20. 20Global Affinity Finance Clubwww.finaccord.comACLEDA Bank, 9Acxsys, 14Advent Financial, 13AEGON, 10Aetna, 12, 13Agenzia Veneta per i Pagamenti in Agricoltura, 12AIG, 9, 10Aioi Nissay Dowa Insurance, 6Air Austral, 7Air France, 7Aircel, 16, 17Airtel Money, 11AirTran, 13Allianz, 4, 7, 8, 9, 10Allianz Global Assistance, 4, 7Ally Insurance, 6American Express, 13, 14, 19American Signature Furniture, 18AmTrust Financial Services, 6Anhui Jianghuai Automobile, 11ANZ, 14Aon, 6APRIL International Voyage, 7Aseval, 8, 9Association of Chartered Certified Accountants, 10Aston Martin, 4Astra Graphia Information Technology, 17Aviva, 5, 8, 9Aviva Vida y Pensiones, 9AXA, 7Bank of America, 12Bank of Kigali, 16Bankia, 8, 19Barclaycard, 13, 14Barclays, 8, 13Bausparkasse Wüstenrot, 11BAWAG P.S.K., 11BBVA, 10BBVA Compass, 10Best Buy, 18Bethpage Water District, 4BGL Group, 5BlackBerry, 17BMN, 9BMO Bank of Montreal, 14, 17BNL, 12BNP Paribas, 12Boku, 17Brightstar, 7Britannia Rescue, 4Bupa International, 5Caja España Duero, 9Capital One, 18Carrefour, 14CGI, 17Chase, 11, 13Chase Bank, 11China National Travel Services, 14CIMB Aviva Assurance, 8CIMB Aviva Takaful Berhad, 8CIMB Bank, 8CIMB-Aviva, 8Citibank, 14Citigroup, 18Civil Service Insurance Society, 5Colegio de Abogados de Alicante, 19Colegio de Farmacéuticos de Segovia, 19Colegio de Ingenieros Superiores Industriales de laComunidad Valenciana, 19Colegio Oficial de Ingenieros Técnicos Industrialesde Alicante, 19Confesercenti, 12Confidi Regione Campania, 12Confindustria, 12Confindustria Vicenza, 12Consorzio Nazionale di Sostegno e Sviluppo delleGaranzie, 12Crédit Agricole, 9Credit Life International, 8Dai-ichi Life, 9DAK-Gesundheit, 5Deutsche Eintrittskarten, 6Domestic & General, 6Douglas Group, 18Ecobank, 9Equity Bank, 15Erste Bank und Sparkasse, 14ERV, 6Europ Assistance, 4ExxonMobil, 18Ezetap, 15FBC Bank, 10Finest, 12First Bankcard, 19Fundamo, 16GE Capital Retail Finance, 18Gemalto, 15Hanley Economic, 10HanseMerkur, 5, 7HDFC Bank, 13HomeServe, 4HSBC, 9, 10, 18Huadian Corporation, 9ICICI Bank, 14, 17IGI Group, 6IHG, 13Intesa SanPaolo, 12Itaú, 15JCB, 11Jubilee Insurance, 5Junction, 5Kasikorn Bank, 14Khazanah Nasional, 8Korea Exchange Bank, 14Krung Thai Bank, 14Legal & General, 10Liberty Seguros, 6LoyaltyEdge, 19LTUR, 7LV=, 4Macys, 18MAPFRE Asistencia, 4MAPFRE Warranty, 6MasterCard, 10, 11, 12, 13, 15, 16Mazda, 4MBNA, 12MetLife Amplico, 4MGA, 7Middlesea Assist, 4Monitise, 17M-Pesa, 11MS&AD, 6National Basketball League, 10Nationwide, 4NCG Banco, 9Northern Rock, 12NUEZ, 4Old Mutual, 9Orange, 16Pacifica, 9Paraíso Universal, 7PayFlex Systems 13Pelayo Vida, 9PermataBank, 17Prudential, 9PVB Card Corporation, 11RAC, 5Real Federación Española de Automovilismo, 6Real Federación Motociclista Española, 6Redecard, 15Renault Nissan, 11, 12RheinLand Versicherungsgruppe, 8Russian Olympic Committee, 11Safeway, 14Samsung, 16Santander, 10, 11Sberbank, 11Sears, 18Shell, 18Società Italiana per le Imprese allEstero, 12Sun Life Assurance Company, 8Sun Life Financial, 8Talanx, 8Tata Teleservices, 14TD Bank, 18Telefónica, 17Tesco Bank, 5The Home Depot, 18Thomas Kinkade Company, 18TIM, 15Times Internet, 13Treviso Glocal, 12Trikomsel, 7U.S. Cellular, 17Unicaja, 9UniCredit, 11, 12Unindustria Treviso, 12Union Haddiema Maghqudin, 4UnionPay, 14University Students Community Organisation, 11Unnim, 10Urwego Opportunity Bank, 16Value City Furniture, 18Veneto Banca, 12Vimpelcom, 15Virgin Money, 12Visa, 11, 16, 17, 18Vodafone, 17Walmart, 14Western Union, 13, 14Whirlpool, 6Wind Italy, 15Wirecard, 17Zurich, 5Organisations in this issue
  21. 21. 21Global Affinity Finance Clubwww.finaccord.comAbout GAFCThe Global Affinity Finance Club isFinaccord’s quarterly newsletter aboutaffinity financial services worldwide.Through this, Finaccord publishes topline information about key strategicdevelopments in affinity and partner-ship marketing of financial servicesaround the world, segmented betweenaffinity insurance news, bancassurancenews and affinity banking news.This service differs from that providedby other research companies becauseits focus is genuinely global, oftentranslating news that only appears inlanguages other than English. In addi-tion, it concentrates exclusively onaffinity and partnership marketingstrategy.Affinity and partnership marketingstrategy is an important component ofgeneral distribution strategy for a ma-jority of large banks and insurancecompanies serving consumers andsmall businesses as successful partner-ships potentially allow them to accessgroups of customers that they cannotalways reach by themselves.If you would like to join Finaccord’sGlobal Affinity Finance Club, contactus by telephone or send us an email Thereafter, eachquarter, we will send you a link to thepage of our website with fresh newsand future editions of this document.About FinaccordFinaccord is a leading market research,publishing and consulting companyspecializing in financial services. Weprovide our clients with insight with aparticular focus on marketing anddistribution strategies, including affin-ity and partnership marketing.Our areas of expertise include: affinityand partnership marketing; automotivefinancial services; bancassurance; com-mercial non-life insurance brokers;consumer intelligence; creditor insur-ance; distribution channels; extendedwarranties; insurance and assistancelinked to payment cards and bankaccounts; mobile gadget and telephoneinsurance; retailer financial services;small business financial services; andtravel insurance and assistance.Our international network of consult-ants is able to deliver informationquickly and accurately across a rangeof countries worldwide, basing re-search projects on robust data andknowledge rather than suppositionand theory.© Finaccord Ltd., 2013Registered in London No. 4542931The Office Farringdon24 Greville StreetLondon,EC1N 8SSPhone: +44 20 3178 2556Fax: +44 20 7198 7902Email: info@finaccord.comwww.finaccord.comDoes your organisation havenews about its affinity or part-nership marketing relationshipsthat we missed in this newslet-ter? To produce it, we system-atically research close to 300major financial services institu-tions from around the worldeach quarter. However, if youwould also like us to includeyour company in this research,please send an e-mail to and we willensure that it is tracked in fu-ture quarters.To access the archive of newsfrom the Global Affinity Fi-nance Club please’s latest published reports include: Affinity and Partnership Marketing in UK Commercial Non-Life Insurance GBP 1,495 Aggregation Metrics: Consumer Approaches to Online Insurance Comparison Sites in Europe GBP 2,995 Bancassurance in India: Life, Non-Life and Creditor Insurance GBP 995 Bancassurance in Thailand: Life, Non-Life and Creditor Insurance GBP 995 Bancassurance in Vietnam: Life, Non-Life and Creditor Insurance GBP 995 Card Protection Metrics: Consumer Approaches to Card Protection Insurance in Europe GBP 2,495 Creditor Insurance in Latin America GBP 1,795 Life Bancassurance in Latin America: Protection-Related Life Insurance GBP 1,795 Trade Credit Insurance in Europe GBP 2,995 Travel Insurance and Assistance in the Middle East GBP 1,795