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AFFINITY INSURANCE SUMMER 2012 BANCASSURANCE Global Affinity AFFINITY BANKING Finance ClubFinaccord’s newsletter about affinity financial services worldwideWelcome back to your Club! The summer may have been full of sporting distractions in the shape of Euro 2012, Wimbledon and, of course, the London Olympics and Paralympics, but these do not seem to have held up a wide array of initiatives in the world of affinity and partnership marketing. As detailed in this new Summer 2012 edition of the Global Affinity Finance Club, significant new bancassurance joint ventures have been created by AXA, Cigna and Liberty Mutual in China, Turkey and India, respectively, while Genworth Financial has entered into an interesting partnership with MAPFRE in Latin America for the distribution of creditor and lifestyle protection products. In the payments arena, much attention has been focussed once again on the creation of partnerships designed to facilitate the develop- ment of mobile payments. Deals involving China UnionPay, Master- Card and Monitise are particularly prominent in this respect. Meanwhile, in the UK, two major retail brands have established new relationships for selling insurance. Specifically, John Lewis has se- lected Ageas and RSA as new non-life insurance partners while Tesco has begun working with Aviva as its provider of protection- related life insurance products. The UK Post Office, too, is also in the news having reconfigured its long-standing tie with Bank of Ire- land and initiated a new link with HSBC that aims to improve ac- count access for the bank’s customers. With best regards, Alan Leach Director aleach@finaccord.com For our published reports, news and more please visit www.finaccord.com

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Global Affinity Finance ClubTable of contentsAffinity Insurance News 4 Daimler Financial Services and Zurich HOUSEHOLD INSURANCE 8 disclose success of branded motor insur-ASSISTANCE 4 ance 6 RSA renews household insurance deal with UKs second-largest building socie-Aria Assistance partners with Pannone PRODUCT INSURANCE / WAR- ty 8for specialist legal assistance 4 RANTIES 6 LIFE INSURANCE / RETIREMENTPorsche to promote AXAs breakdown Domestic & General renews contracts SAVINGS 9recovery service for a further three years with electronic appliance groups 64 AXA and ICBC launch a joint venture MAPFRE Warranty creates partnership for life insurance in China 9MAPFREs Chinese assistance unit se- with Mexican office equipment specialistcures mandate with Fujian Benz Auto- 6 Cigna and Finansbank create life insur-motive 4 ance and pensions joint venture 9 Assurant and GCube partner to protectCOMMERCIAL INSURANCE 4 commercial solar energy projects 7 Manulife launches insurance and wealth management products through Indone-American Bar Association endorses TRAVEL INSURANCE 7 sian bank 9cyber liability insurance from Chubb 4 ACE secures travel insurance deal with Manulife commences the sale of termModerna Försäkringar secures multi- RAC 7 assurance for business clients throughyear commercial affinity deal 4 Nomura Securities 10 Ageas wins John Lewis travel insuranceZurich tees up new golf affinity scheme mandate 7 Manulife and Bank of Tokyo-Mitsubishiwith Circle Golf 4 UFJ firm up partnership for fixed annui- MAPFRE Assistance provides free trav- ties 10LIFE INSURANCE 5 el cover to African airline passengers 7 GENERAL 10Aviva gains life insurance distribution Solid Försäkringar rolls out agreementdeal with Tescos banking arm 5 with Nordic online travel group 7 BAWAG P.S.K. and Generali renew bancassurance agreement up to 2023 10BNP Paribas Cardif renews partnership GENERAL 8with Magazine Luisa up to 2015 5 ———————————————-- Swiss insurers agree to sell each othersItaú Unibanco terminates insurance products 8 Affinity banking 10marketing partnership with retail chain 5 Liberty Mutuals Indian joint venture AFFINITY BANK ACCOUNTS 10LV= wins five-year tie with RAC for receives green light to start operating 8protection-related life insurance 5 BMO customers given opportunity to John Lewis selects RSA for household, generate AIR MILES from everydayMDS and Towers Watson sign employ- pet and wedding cover 8 banking 10ee benefits joint venture agreement 5 ———————————————-- AFFINITY CARDS 10Scottish Friendly links with BGL Groupfor Beagle Street venture 6 Bancassurance 8 Société Générale launches new bank card with French golfing federation 10MOTOR INSURANCE 6 CREDITOR INSURANCE 8 AUTOMOTIVE FINANCE 11AXA enriches offer to Spanish associa- Genworth Financial establishes Latintion for motorcyclists 6 American tie with MAPFRE 8 www.finaccord.com 2

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Global Affinity Finance ClubAlly Financial strengthens ties with Scotiabank issues a new suite of Ameri- Wirecard works with Deutsche Tele-Mitsubishi Motors in North America 11 can Express travel rewards cards… 13 kom for German mobile payments initiatives... 17CO-BRANDED CARDS 11 …and signs expatriate referral agree- ments with banks in both China and ... and with myTaxi for processing taxiChase unveils a new Marriott Rewards India 14 fare payments via smartphone 17card for Canadians… 11 UnionPay takes action to expand its ONLINE PAYMENTS 17…and adds a debit card to its US range card business in Australia 14of co-branded Disney products 11 MasterCard links with eNett Interna- MOBILE PAYMENTS 14 tional for travel industry payments 17HDFC Bank launches co-branded cred-it cards with Indian frequent flyer pro- China UnionPay and China Mobile RETAILER CARDS 17gram 11 agree to co-operate for mobile pay- ments 14 Citi Retail Services rolls out new creditWestern Union and UnionBank intro- card with fuel retail chain 18duce prepaid Visa card in the Philip- MasterCard forges mobile paymentspines 12 alliance with Everything Everywhere in GE Capital links with New Zealand the UK... 14 supermarket chain for credit cardCONSUMER FINANCE 12 launch... 18 ... and with Deutsche Telekom in Ger-BNP Paribas Personal Finance and many 15 ... and renews multi-year credit cardSberbank finalise their consumer credit program with Sams Club 18joint venture 12 MasterCard and Westpac launch new pilot application for mobile payments GENERAL 18INTERNATIONAL REMITTANCES 1512 Bankinter extends relationship with UK earmarked as first European launch charity serving individuals with hearingChina UnionPay and MoneyGram link market for moneto 15 difficulties 18for emergency cash service 12 Mobile Money Network enables Bank of Ireland and the UK Post Of-ICBC to use Western Union for inward smartphone users to buy direct from fice extend partnership through to 2023and outward account-based transfers 12 UK media group 16 18Western Union makes inroads into Monitise combines with Bank of China HSBC agrees account access deal withMyanmar 13 for mobile payment programs in Hong the Post Office for UK customers 19 Kong... 16INTER-BANK DISTRIBUTION 13 MasterCard links with shopkick loyalty ... and links with The Co-operative scheme specialist 19American Express and Uralsib Bank Bank for mobile payments and bankingforge Russian card-issuing agreement in the UK 1613 Targobank and BASE introduce con-Bank Internasional Indonesia and JCB tactless mobile payments in Germanycombine for platinum card launch 13 16Discover network to bring PayPal pay- Partners pioneer contactless paymentsments to in-store locations across the in the Czech Republic 17US 13 www.finaccord.com 3

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Global Affinity Finance Club Affinity InsuranceAffinity Insurance News MAPFREs Chinese assis- costs. To minimise third-party tance unit secures mandate coverage overlaps, a firm canASSISTANCE with Fujian Benz Automotive designate its cyber or profes- sional liability policy as primaryAria Assistance partners with In China, MAPFRE Asistencia, insurance and the other as ex-Pannone for specialist legal via its local Road China Assis- cess insurance. Law firms thatassistance tance unit, has won a new con- select their cyber liability policy tract with Fujian Benz Automo- as excess coverage may be eligi-Aria Assistance – which is the tive for the provision of road- ble for a premium discount.newly independent firm that side assistance services. Roademerged from the management China Assistance is positioning Moderna Försäkringar se-buyout of Europ Assistances itself as one of the most promi- cures multi-year commercialUK and Ireland division – has nent providers of extended war- affinity dealselected law firm Pannones Af- ranties and breakdown recoveryfinity Solutions brand to provide insurance in China, and the deal In Sweden, Moderna Försäkrin-legal assistance services to its with Fujian Benz Automotive, a gar has entered into an agree-customers. Aria Assistance mar- joint venture of Daimler with m e n t w i t hkets itself as a full-service assis- the Fujian Motor Industry Glasbranschföreningen, a tradetance company and provides Group which currently produc- association for enterprises activeboth insured and uninsured es around 40,000 vehicles each in glass-related activities such asproducts, primarily in the areas year, will strengthen its hand in glazing, to offer commercial in-of travel insurance and assis- this arena. surance. The association hastance, international private med- around 600 members in total.ical insurance, and roadside as- ————————————sistance. Zurich tees up new golf affin- COMMERCIAL INSURANCE ity scheme with Circle GolfPorsche to promote AXAsbreakdown recovery service American Bar Association In the UK, Zurich Insurancefor a further three years endorses cyber liability insur- has announced that it has be- ance from Chubb come the underwriter for theAXA Assistance has announced Par Excellence commercial af-the renewal of its previous dis- In the US, the American Bar finity scheme run by Circletribution partnership with luxu- Endowment, a non-profit affili- Golf, a trading division of Glas-ry sports car manufacturer Por- ate of the American Bar Associ- gow-based broker Circle Insur-sche for a further three years. ation (ABA), has named the ance Services, after signing aThe deal, which originally dates Chubb Group of Insurance long-term deal with the golfingback to 2009, means that all Companies as its preferred pro- specialist. The scheme includespurchasers of new or approved vider of cyber liability insurance around 600 golf clubs across thePorsche vehicles in 34 Europe- for ABA members. Chubb’s UK and has been active foran and North African countries cyber liability policy for law around 20 years.are given the option of acquiring firms covers losses which mayAXAs roadside breakdown and not usually be covered by a pro- ————————————recovery products. fessional liability policy, includ- ing cyber breach notification www.finaccord.com 4

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Global Affinity Finance Club Affinity InsuranceLIFE INSURANCE market its protection insurance based advice service for protec- products through the 730 stores tion-related life insurance prod-Aviva gains life insurance dis- operated by the chain through- ucts including income protec-tribution deal with Tescos out Brazil, and via its websites. tion, critical illness and life cov-banking arm Sales of extended warranties, er, and issues such as inher- which are not covered by this itance tax planning. CustomersIn the UK, Aviva has secured an agreement, remain the responsi- will also be able to purchaseexclusive five-year deal with bility of Luizaseg, a joint venture term life and over 50s insuranceTesco Bank, the banking arm of formed in 2005. products via the RAC website.the eponymous retail group, to The two firms aim to combineprovide protection-related life Itaú Unibanco terminates in- their marketing expertise to helpproducts for its UK retail cus- surance marketing partner- increase awareness among RACtomers. The agreement, which ship with retail chain customers, advertising in mem-will begin later in 2012, will en- ber magazines as well as usingtail the marketing of Aviva’s In Brazil, the insurance arm of both direct and online market-core protection products, in- Itaú Unibanco has announced ing.cluding life and critical illness the termination of its partner-cover plus specialised over 50s ship with retail chain Lojas MDS and Towers Watsonlife insurance. These products Americanas, first established in sign employee benefits jointwill be available online via Tesco 2005, for the marketing and dis- venture agreementBank or over the telephone. tribution through FAICustomers will also be able to (Financeira Americanas Itaú In Portugal, international pro-obtain information through Crédito) of insurance and pen- fessional services companysome of Tesco’s 2,900 stores. sion products to the customers Towers Watson and PortugueseThis deal expands Tesco’s exist- of the retail brand. Specifically, broker MDS have signed a jointing relationship with Aviva as Lojas Americanas is expected to venture agreement to establish athe insurer already provides a sell to Itaú Unibanco its equity benefits brokerage consultingprivate medical insurance stake in FAI for BRL 83 million service which will combinescheme for Tesco’s employees. and to acquire the operating Towers Watson’s consulting rights held by FAI for the pro- expertise in pensions, healthcareBNP Paribas Cardif renews motion of financial products. and risk management withpartnership with Magazine This termination has to be ap- MDS’s experience in employ-Luiza up to 2015 proved by the regulatory author- ment benefits. This joint ven- ities after an appropriate transi- ture, effective from SeptemberIn Brazil, BNP Paribas Cardif tional period. 2012, aims to provide an effec-and Magazine Luiza, one of tive response to changes in theBrazils largest retail chains, have LV= wins five-year tie with employee benefits market, withagreed to continue their partner- RAC for protection-related the introduction of new clientship up to 2015. BNP Paribas life insurance services and additional expertise.Cardif has held a distributionrelationship with Magazine Lui- In the UK, LV= has signed aza since 2005 and under the five year partnership deal withterms of this new exclusive RAC. Through LV=, RAC willagreement, it will continue to offer its customers a telephone- www.finaccord.com 5

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Global Affinity Finance Club Affinity InsuranceScottish Friendly links with with the aim of offering benefits PRODUCT INSURANCE /BGL Group for Beagle Street to motorcyclists; it has around WARRANTIESventure 150,000 members and has up- dated its offering both with the Domestic & General renewsIn the UK, BGL Group, a lead- launch of a new website contracts with electronic ap-ing broker of personal and com- (www.club14.es) and through pliance groupsmercial insurance, has estab- increased use of social networks.lished a partnership with Scot- Membership of Club14 gives Electronic appliance groupstish Friendly Assurance for the access to a wide range of bene- Electrolux and Indesit havecreation of a new online life in- fits such as driving courses, mo- both signed new contract exten-surance brand, Beagle Street. tor magazine subscriptions and sions with warranty specialistSpecifically, Beagle Street aims discounts on equipment, acces- Domestic & General for theto modernise the way in which sories and spare parts. provision of warranty servicesconsumers buy life insurance, across Ireland and the UK.making it cheaper, simpler and Daimler Financial Services Electrolux has worked with Do-more accessible. Specifically, and Zurich disclose success mestic & General in this fieldBeagle Street provides custom- of branded motor insurance since 1979 and under the newers with instant cover, as soon agreement Domestic & Generalas they buy, and with no need Daimler Financial Services, the will administer and managefor medicals. The majority of captive automotive finance Electrolux’s warranty schemescustomers are expected to pur- company belonging to Daimler, through to 2017, including thosechase entirely online, although a has named Zurich as its insurer of the AEG and Zanussiteam of telephone advisors are of the year in the automotive brands, as well as that of Elec-on hand if customers prefer. segment for 2011. In fact, Zur- trolux itself. Indesit, includingThe policies can be acquired ich is one of around a dozen its Cannon, Hotpoint and In-both directly from the Beagle strategic partners used by Daim- desit and brands, first joinedStreet website and through vari- ler in the insurance sector and with Domestic & General inous online comparison sites. across the 14 countries where 2000 and the new deal will ex- the partnership is active, the val- tend their contract through to———————————— ue of motoring-related insur- 2018. ance policies managed by Zur-MOTOR INSURANCE ich and sold by Daimler rose by MAPFRE Warranty creates 58% to EUR 90 million in 2011. partnership with Mexican of-AXA enriches offer to Span- Moreover, for Daimler Financial fice equipment specialistish association for motorcy- Services, motoring-related insur-clists ance is considered to be a strate- In Mexico, MAPFRE Warranty gic growth sector with the more has established a partnershipIn Spain, AXA has announced than 500,000 such policies sold with Lumen, a leading companythat it is offering free, automatic during the first half of 2012 rep- in the countrys office equip-membership of Club14 to all resenting a record for the manu- ment market with a network ofcustomers taking out one of its facturer brand. 49 outlets, for the provision ofmotorcycle insurance policies. an extended warranty productClub14 is a not-for-profit asso- ———————————— for up to three years followingciation created in Spain in 2006 expiration of manufacturer guar- www.finaccord.com 6

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Global Affinity Finance Club Affinity Insuranceantees. In addition to warranty -related services and products to MAPFRE Assistance pro-cover, the proposition also in- its 7 million private and corpo- vides free travel cover to Afri-cludes a telephone-based tech- rate members, including its core can airline passengersnical assistance service. roadside assistance service. The travel insurance product will be MAPFRE Assistance has en-Assurant and GCube partner sold through a dedicated online tered into a partnership withto protect commercial solar insurance channel as well as via ASKY, a Togo-based airlineenergy projects its team of European break- serving 19 destinations in cen- down recovery specialists. tral and western Africa, for theIn the US, Assurant has entered provision of automatic travelinto a distribution agreement In fact, the new travel insurance insurance for all of its passen-with GCube Insurance Services, product range has been de- gers, which could reach arounda specialist provider of insur- signed to offer a choice of cover 500,000 by the end of 2012. Byance for the renewable energy from a competitively-priced means of this agreement, MAP-industry, for the provision of basic policy through to a com- FRE Assistance continues itscomprehensive insurance and prehensive executive policy. A expansion in sub-Saharan Africawarranty management packages bespoke driving product has where it has already secured afor commercial solar energy also been launched for custom- number of partners in the insur-projects. Specifically, GCube ers driving to Europe on holiday ance and travel sector.will offer and market on a na- with additional cover includedtionwide basis Assurants solar as standard for satellite naviga- Solid Försäkringar rolls outproject insurance policies for tion systems, safety and aware- agreement with Nordiccommercial-sized solar energy ness kits (visibility vest, triangle online travel groupprojects in the range of 100kW and portable breathalyzer kit),to 3 MW. The insurance bundle carjacking, emergency overseas In Sweden, Solid Försäkringaroffers property and liability cov- vet bills and golf equipment. has established a new distribu-erage as well as a warranty man- tion agreement withagement program, allowing de- Ageas wins John Lewis travel eTRAVELi, Scandinavias lead-velopers to address risks affect- insurance mandate ing online travel agency group.ing financing for certain pro- The agreement specifies thatjects. In the UK, Ageas has disclosed eTRAVELi will offer Solids that it has secured a travel insur- travel insurance products to its———————————— ance partnership with retail customers in the Nordic coun- group John Lewis. Ageas will tries and over time across theTRAVEL INSURANCE underwrite the travel insurance whole of Europe. The two com- product and handle the sales, panies have co-operated in theACE secures travel insurance administration and claims ser- past and intend to build on theirdeal with RAC vices. Working with John Lewis prior experience with the new Insurance, the retail groups in- agreement.ACE Group has entered into a surance division, the product ispartnership with RAC in the designed to meet a wide range ————————————UK, to offer travel insurance of travel requirements with bothunder the RAC brand. RAC cur- single-trip and annual policiesrently provides a range of motor available. www.finaccord.com 7

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Global Affinity Finance Club BancassuranceGENERAL John Lewis selects RSA for Bancassurance household, pet and weddingSwiss insurers agree to sell cover CREDITOR INSURANCEeach others products In the UK, RSA has disclosed Genworth Financial estab-In Switzerland, Concordia and that it has been selected by John lishes Latin American tieSchweizerische Mobiliar have Lewis, a retail group, for the with MAPFREcommenced a strategic distribu- provision of household, pet andtion partnership to cross-sell wedding insurance to be sold Genworth Financial has enteredeach others insurance products. through John Lewis Insurance, into an exclusive distributionSpecifically, Concordia is one of the groups insurance unit. RSA agreement across 18 countries inthe largest accident and health began underwriting pet and Latin America with MAPFREinsurance providers in Switzer- wedding cover from the end of for the provision of creditor andland, while Schweizerische Mo- July 2012 and will start under- lifestyle protection insurancebiliar specialises in the provision writing household insurance products. MAPFRE is an attrac-of risk life and non-life insur- from January 2013. The pet tive partner for Genworth Fi-ance. product will offer three different nancial given its status as the levels of cover and includes 24- second-largest insurance groupLiberty Mutuals Indian joint hour help and advice from vet- in the region with an extensiveventure receives green light erinary nurses working for network of distribution partners,to start operating vetfone plus complementary including banks. Meanwhile, treatments, such as physiothera- MAPFRE anticipates benefitingIn India, Liberty Mutual has dis- py, acupuncture and behavioural from the specialist expertise ofclosed that Liberty Videocon treatments. There is also no up- Genworth Financial in creditorGeneral Insurance, a joint ven- per limit for vets’ fees, regard- and lifestyle protection insur-ture created in December 2010 less of the age of the pet. Mean- ance products, which includein partnership with Videocon while, the wedding product, cover for risks such as tempo-Industries (a diversified con- which can also cover other rary incapacity and unemploy-glomerate), has received the events, is characterised by six ment.necessary license from the coun- levels of cover, and includestrys insurance regulatory au- cover for cancellation or rear- ————————————thority to commence its opera- rangement, loss or damage, fail-tions. Headquartered in Mum- ure of suppliers and wedding HOUSEHOLD INSURANCEbai, Liberty Videocon General rings.Insurance will provide multi-line RSA renews household insur-insurance underwriting capabili- ————————————-- ance deal with UKs second-ties nationally to various distri- largest building societybution channels, with an empha-sis on personal insurance prod- In the UK, RSA has announceducts. the renewal of its partnership with the Yorkshire Building So-————————————-- ciety for a further five years. Un- der the terms of the renewal, RSA will provide household in- www.finaccord.com 8

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Global Affinity Finance Club Bancassurancesurance to customers of the ual shares of 27.5% and 12.5%. ticipate in the results of the jointBarnsley, Chelsea, Norwich & venture as a continuing share-Peterborough and Yorkshire ICBC-AXA Life operates in holder in Finans Emeklilik.building society networks, all of more than 20 major cities and Cigna anticipates that the jointwhich are owned by the York- provinces in China; its head- venture will provide it with op-shire. Guided by the Yorkshires quarters are in Shanghai, with portunities to reach and serve amarketing proposition, the new Beijing and Guangzhou also rapidly-expanding middle classhousehold insurance product serving as hubs. It aims to ex- market in Turkey through theoffers a wide choice of cover pand across China to provide banks network of branches.levels to suit customers’ needs, insurance advice and services to Moreover, by leveraging Cignasensuring that they only pay for meet the increasing needs of direct distribution expertise, it iswhat they require. Chinese people, including prod- hoped that Finansbank will be ucts related to education, family able to provide consumers———————————— protection, wealth management across Turkey with new ways to and retirement. Moreover, purchase life insurance and pen-LIFE INSURANCE / RE- ICBC-AXA Life has access to sion products.TIREMENT SAVINGS ICBC’s customer base of 282 million individual customers and Manulife launches insuranceAXA and ICBC launch a joint 4.11 million corporate clients and wealth managementventure for life insurance in through its service network. products through IndonesianChina bank Cigna and Finansbank createIn China, ICBC-AXA Life has life insurance and pensions In Indonesia, Manulife andbeen officially launched follow- joint venture Bank Danamon have agreed toing approval from China’s State begin offering a range of Manu-Council and all relevant regula- In Turkey, Cigna has unveiled a life products to a broad base oftory bodies. This is a life insur- long-term distribution agree- the banks customers through itsance joint venture between ment with Finansbank, the network of 3,100 branchesAXA, China Minmetals Corpo- countrys fifth-largest privately- across Indonesia. The initiativeration (Minmetals) and Industri- owned bank, for the sale of life aims to enhance insurance andal and Commercial Bank of Chi- insurance and pension products. wealth management offerings tona (ICBC), replacing AXA- Specifically, the deal involves a wider range of customers na-Minmetals Assurance which had the acquisition by Cigna for a tionwide and follows the origi-been established previously in consideration of EUR 85 mil- nal creation of the partnership1999. Under an equity transfer lion of a 51% stake in Finans between the two companies inagreement reached in 2010 be- Emeklilik, the sixth-largest life October 2011. The three newtween AXA and Minmetals, insurance and pensions provider products being marketed offerICBC bought 60% of AXA- in Turkey selling mainly through different types of protection asMinmetals and became the ma- the bancassurance channel, well as a diverse range of invest-jority shareholder of the compa- thereby converting the company ment options, through 14 unit-ny; AXA, which will provide from a captive to a joint ven- linked funds, that can cater toproduct development and risk ture. As part of the agreement, the specific wealth accumulationmanagement support, and Finansbank will receive sales needs of customers.Minmetals own respective resid- commissions and will also par- www.finaccord.com 9

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Global Affinity Finance Club Affinity BankingManulife commences the sale GENERAL program. This new product,of term assurance for busi- known as the BMO AIRness clients through Nomura BAWAG P.S.K. and Generali MILES Bank Plan, allows cus-Securities renew bancassurance agree- tomers to earn miles through a ment up to 2023 variety of everyday transactions,In Japan, Manulife has entered including spending on the asso-into a distribution agreement In Austria, banking group ciated debit card (at an earningswith Nomura Securities to sell BAWAG P.S.K. and Generali rate of one mile for every CADdifferent types of term assur- have agreed to renew their exist- 30 of expenditure). Customersance for business customers. ing co-operation agreement are also able to accumulate bo-Specifically, these are designed through to 2023. This agree- nus miles each year for havingto help executives to prepare for ment entails the distribution of maintained a minimum accountthe various business risks they Generalis non-life insurance balance, or for having held theface. They may be used as a products through BAWAG related BMO Gold AIR MILESfund for business contingencies, P.S.Ks branches with life insur- MasterCard credit card, forsuch as when an executive faces ance products provided by which the annual fee is CAD 99.adverse circumstances, or as an BAWAG P.S.K. Versicherung, a At a time when more and moreexecutive retirement bonus, joint venture company in which Canadians are opting to useused when a director or other Generali and BAWAG P.S.K. debit cards rather than creditmember of management retires. hold 74.9% and 25.1% of the cards, the two partners state that share capital, respectively. The this is one of only a small num-Manulife and Bank of Tokyo- partnership between the two ber of schemes that allow con-Mitsubishi UFJ firm up part- companies has existed since sumers to generate additionalnership for fixed annuities 2007 when BAWAG Versicher- benefits from non-interest bear- ung and P.S.K. Versicherung ing payment cards.In another deal in Japan, Manu- merged to become BAWAGlife has commenced sales of in- P.S.K. Versicherung. ————————————dividual fixed annuities denomi-nated in foreign currency ————————————-- AFFINITY CARDS(Australian or US dollars)through the Bank of Tokyo- Affinity banking Société Générale launchesMitsubishi UFJ. Specifically, the new bank card with Frenchproduct enables customers to A FF I NI TY BA N K AC- golfing federationreceive an annuity in the select- COUNTSed foreign currency over the The range of affinity bank cardscourse of their lifetime. Manu- BMO customers given oppor- run by Société Générale contin-life in Japan is a subsidiary of tunity to generate AIR ues to grow with an addition toManulife Financial, a leading MILES from everyday bank- its Sport collection. HavingCanada-based financial services ing supported the Fédération Fran-group with operations in Asia, çaise de Golf for many years, itCanada and the US. In Canada, BMO Bank of Mon- has now launched a bank card treal has launched a co-branded with a golfing image in associa-———————————— bank account in conjunction tion with it; this card is available with the AIR MILES rewards as a standard or gold Master- www.finaccord.com 10

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Global Affinity Finance Club Affinity BankingCard and carries a range of ben- CO-BRANDED CARDS and The Walt Disney Companyefits, such as earning points to- have announced the latest addi-wards green fees for the Golf Chase unveils new Marriott tion to their range of co-National. The card, which can Rewards card for Canadi- branded payment instruments,operate as a debit card or as a ans… in the form of Disneys Visadeferred debit or credit card, debit card. The new card – forcarries an annual fee of EUR 24. In Canada, Chase Card Services which customers can choose and Marriott Rewards – the loy- one of four character-based de-———————————— alty scheme belonging to the signs – attracts no annual fee Marriott International group, and is available with virtually allAUTOMOTIVE FINANCE which operates more than 3,500 of Chases regular bank ac- hotels and other properties counts. Cardholders will benefitAlly Financial strengthens across 74 countries – have from discounts on merchandiseties with Mitsubishi Motors launched a co-branded credit purchased at regular Disneyin North America card, namely the Marriott Re- stores, and on spending at retail wards Premier Visa card. The and hospitality locations withinMitsubishi Motors North Amer- new card will allow Canadians to the resorts themselves. Custom-ica has selected Ally Financial to earn Marriott Reward points at ers will also be able to gain ac-be a preferred provider of leas- an accelerated rate on all pur- cess to private character meet-ing and financing for its new chases and to accumulate free and-greet sessions within the100%-electric Mitsubishi i mod- stays, in addition to receiving parks and resorts, including ael, and for other vehicles in the automatic Silver Elite status free photograph to take away.Mitsubishi range. Specifically, within the loyalty program. The This is the first debit card to beAlly Financial will work along- normal annual fee is CAD 120, available in the groups line-upside the manufacturer brands although this will be waived dur- of co-branded products in thecaptive Mitsubishi Motors Cred- ing the first year. Furthermore, US, which already includes twoit of America. Ally Financial new cardholders will receive a credit cards.currently plays a significant role welcome bonus of 30,000in dealer and consumer financ- points, along with an annual free HDFC Bank launches co-ing within the Mitsubishi net- night stay. This new card, which branded credit cards with In-work, and the new agreement notably does not levy a currency dian frequent flyer programexpands upon this by providing charge for foreign transactions,a broader range of products at is the fourth co-branded card In India, HDFC Bank, theapproximately 400 Mitsubishi from this duo in North Ameri- countrys second largest privateMotors dealerships in North ca, as Chase already issues three sector bank, and JetPrivilege,America. Marriott Rewards credit cards Indias largest frequent flyer (all of them on the Visa net- program (operated by Jet Air-———————————— work) in the US. ways), have joined forces to launch a range of co-branded …and adds debit card to its credit cards offering benefits US range of co-branded Dis- and rewards in the form of ney products JPMiles, the programs currency. The cards will be offered in Meanwhile, in the US, Chase World, platinum and titanium www.finaccord.com 11

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Global Affinity Finance Club Affinity Bankingvariants, all carrying the Master- CONSUMER FINANCE agreed to expand emergencyCard logo. cash support for UnionPay BNP Paribas Personal Fi- cardholders travelling overseas.Western Union and Union- nance and Sberbank finalise Under the terms of the agree-Bank introduce prepaid Visa their consumer credit joint ment, all outlets of MoneyGramcard in the Philippines venture will provide emergency cash support to UnionPay cardhold-In the Philippines, Western Un- In Russia, Sberbank and BNP ers, making up to USD 5,000ion and UnionBank have Paribas Personal Finance have available in the event of unfore-launched a prepaid Visa gold finalised their agreement for a seen circumstances. In addition,card incorporating Western Un- consumer credit joint venture, the parties will co-operate toion money transfer functionali- as indicated in previous editions expand the range of UnionPay’sty. The card is the first of its of the Global Affinity Finance global fast remittance service,kind in the Philippine market to Club. This agreement was sealed enabling remittances to be paidallow cardholders to initiate at the end of August, and the to UnionPay cardholdersWestern Union transactions di- joint venture (called BNP Pari- through MoneyGram outletsrectly onto the card via text bas Vostok) will be 70%-owned worldwide.message, through a customer by Sberbank and 30%-owned byservice hotline, on the Western BNP Paribas Personal Finance. ICBC to use Western UnionUnion website or by visiting any However, it will trade using the for inward and outward ac-participating Western Union Cetelem brand with the aim of count-based transfersagent location in the country. expanding consumer credit inThe card will also allow card- Russia through a range of sim- Western Union has signed anholders to split payouts, which ple products at reasonable inter- agreement with Industrial andwill direct part of a remittance est rates. Cetelem believes that it Commercial Bank of Chinaonto the card with the rest re- currently holds 4.5% of the Rus- (ICBC) which will enable theceived in cash. The card will also sian point-of-sale market, and banks customers to send or re-offer many Filipinos a way of has ambitions to become the ceive money from their onlinestoring, saving, tracking and ac- market leader through new accounts to anywhere on West-cessing their funds in a country agreements with distributors ern Union’s network. Customerswhere only around 27% of that it intends to sign in the will be able to receive funds inadults have a traditional bank wake of this deal. either US dollars or Chineseaccount. The Philippines is the renminbi. Indeed, Western Un-first country in the Asia-Pacific ———————————— ion already provides account-region where Western Union based transfer services to severalhas launched a prepaid card, INTERNATIONAL REMIT- banks in China, including theextending the company’s stored- TANCES Agricultural Bank of China, Chi-value products and services to na Everbright Bank and thenine countries worldwide, in- China UnionPay and Postal Savings Bank of China.cluding Argentina, Austria, El MoneyGram link for emer- All of these banks allow theirSalvador, Germany, Panama, gency cash service customers with on-line bankingPeru, the US and the UK. to direct international money China UnionPay and transfers received via Western———————————— MoneyGram International have Union to their bank accounts, www.finaccord.com 12

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Global Affinity Finance Club Affinity Bankingwhile China Everbright Bank benefits traditionally associated teaming up with Discover toalso offers its customers out- with the American Express bring PayPal to more than 7ward remittance services. brand. Moreover, they will be million merchant locations issued in both Euro and US dol- across the US, with internationalWestern Union makes in- lar versions as well as a local expansion of the program a fu-roads into Myanmar currency version. ture possibility. Starting in 2013, participating merchants will beWestern Union has also initiated Bank Internasional Indonesia able to accept PayPal througha relationship with Myanmar and JCB combine for plati- their existing relationship withOriental Bank for the provision num card launch Discover; merchants will be ableof international money transfer to use their existing point-of-services. By means of this deal, Japanese payment card company sale hardware, including cardWestern Union becomes one of JCB International has an- readers and terminals, to pro-the first money transfer compa- nounced that Bank Internasion- cess the payments.nies to operate in Myanmar, al Indonesia (BII) has launchedpaving the way for the develop- the first ever JCB platinum card Scotiabank issues a new suitement of formal international in Indonesia in the shape of the of American Express travelmoney transfer services shortly BII-JCB Platinum Credit card. rewards cards…after Australia, the EU, the US BII, a subsidiary of Maybankand others decided to lift invest- since 2008, operates over 360 Three new credit cards aimed atment and trade bans against the branches and 1,190 ATMs in regular travellers – namely thecountry. Myanmar Oriental Indonesia, a market in which Scotiabank American ExpressBank is among the first group of JCB has been active since 1983. card, along with its gold andprivate banks in the country au- Furthermore, approximately platinum variants – are nowthorised to operate foreign cur- 80,000 merchants in Indonesia available to Canadians, signify-rency services. accept the JCB card for pay- ing a new distribution alliance ment. Cardholders will be enti- between American Express and———————————— tled to membership privileges Scotiabank. Cardholders will be including a jointly-developed able to earn rewards points, atINTER-BANK DISTRIBU- loyalty point program as well as varying levels, that can then beTION all regular JCB benefits. The exchanged for a range of travel new card will be marketed to a benefits. For example, the goldAmerican Express and range of affluent customers in card (which carries an annual feeUralsib Bank forge Russian Indonesia including both Indo- of CAD 99) allows consumerscard-issuing agreement nesian citizens travelling to Ja- to earn four reward points for pan and Japanese consumers every Canadian dollar spent onAmerican Express and Uralsib residing in Indonesia. dining, entertainment, groceriesBank have revealed that Uralsib and petrol. Rewards points doBank will become an American Discover network to bring not expire and are not subject toExpress card-issuing partner in PayPal payments to in-store seat restrictions or booking fees,Russia. The new credit cards will locations across the US meaning that the entire cost of abe designed to meet the require- trip (including taxes) can bements of Uralsib Bank’s cus- PayPal has revealed that it will funded from points. It will alsotomers and to carry a range of extend its offline strategy by be possible to convert points www.finaccord.com 13

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Global Affinity Finance Club Affinity Bankinginto credits for Scotiabank in- China UnionPay takes action has forged an agreement fo-vestment accounts or to use to expand its card business in cussed on mobile payments withthem to pay off credit card bal- Australia China Mobile. Both parties willances. The new cards also fea- consequently co-operate in re-ture complimentary travel cover In Australia, UnionPay has search and development of bothfor medical emergencies and signed multi-party agreements technology and technical stand-damage to rental cars. with several Australian organisa- ards for mobile payments, as tions, including Cabcharge (an well as jointly promoting the…and signs expatriate refer- Australian taxi financial services industry. The main area of initialral agreements with banks in company), Commonwealth co-operation will be the devel-both China and India Bank of Australia (CBA), Mac- opment of additional SIM card- quarie University, National Aus- based payment functions forAs part of its wider StartRight tralia Bank (NAB) and Tourism mobile phones for remote trans-Program for Newcomers, Sco- New South Wales. The agree- actions, such as bill paymenttiabank has formed distribution ments set forth the terms of co- and online shopping, as well asalliances with two foreign retail operation regarding the ac- contactless transactions at shop-banks, namely Chinas Bank of ceptance and promotion of Un- ping malls, convenience stores,Xian (in which the Canadian ionPay cards and services. Un- vending machines and otherfirm is already a minority share- der the agreement with CBA, places displaying UnionPay’sholder) and Indias Kotak the banks 190,000 merchants Quick Pass logo or China Mo-Mahindra Bank. Under these will accept UnionPay cards bile’s Mobile Phone Wallet logo.referral schemes, prospective within two years. Moreover, The parties plan to launch pilotemigrants, foreign workers and Macquarie University will add projects in several cities in Chi-international students will be UnionPay POS terminals and na.able to apply for and open a ATMs to the campus and willScotiabank account before leav- also introduce the UnionPay MasterCard forges mobileing China or India. Upon arrival online payment system. Mean- payments alliance with Eve-in Canada, they then simply while, UnionPays agreements rything Everywhere in theneed to visit a local Scotiabank with CabCharge, NAB and UK...branch in order to activate their Tourism New South Wales areaccount. Bank of Xian operates all designed to promote the Un- In the UK, MasterCard andaround 115 branches across ionPay brand to foreign visitors Everything Everywhere, thewestern China (where it employs to Australia. countrys largest telecoms com-2,300 staff) and also owns two pany, have announced an exclu-separate rural banks. Kotak ———————————— sive, five-year partnership toMahindra Bank, on the other develop mobile and digital pay-hand, has around 375 branches MOBILE PAYMENTS ment solutions for Everythingspread across more than 200 Everywhere’s 27 million cus-locations in India. China UnionPay and China tomers in the UK. This new Mobile agree to co-operate partnership aims to support the for mobile payments accelerated adoption of secure mobile payments by combining In its home market, China Un- technology and financial assets ionPay has announced that it to create new services that will www.finaccord.com 14

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Global Affinity Finance Club Affinity Bankingmake paying for goods and ser- mobile payments a reality for UK earmarked as first Euro-vices easier for people and small Deutsche Telekom’s 93 million pean launch market forbusinesses. mobile customers across Eu- moneto rope. The first consumer roll-One of the first products to out will take place in Poland lat- In partnership with MasterCard,launch through the partnership er in 2012. Also during 2012, it DeviceFidelity and Vincentowill be a co-branded prepaid is anticipated that German con- Payment Solutions have an-solution for mobile devices that sumers will be introduced to nounced the commercial launchallows customers to make pay- mobile payments, initially in a of the European version ofments using NFC technology. trial with mobile phone tags and moneto, the direct-to-consumerThis will enable millions of Eve- cards, continuing into the first NFC prepaid mobile wallet apprything Everywhere customers half of 2013 with a mobile wal- for the iPhone, specifying thatto make contactless payments at let service which will also be the UK will be the first launchmore than 100,000 merchants in open to other issuing banks and market in Europe, following onthe UK. partners. Deutsche Telekom will from launch in the US earlier in issue the MasterCard products 2012. The moneto prepaid mo-Over the course of the partner- via its subsidiary company bile wallet uses a combination ofship, MasterCard and Every- ClickandBuy, the owner of an e- MasterCards PayPass technolo-thing Everywhere intend to ex- money licence. Products will g y a nd De vic e Fi de l i ty ’ spand its scope into other areas, also be launched over time in iCaisse4X case to eventually en-including person-to-person other European markets in able contactless payments onmoney transfers, loyalty rewards which Deutsche Telekom is ac- the iPhone at nearly 500,000and digital payment services that tive. merchant locations in 41 coun-will enable consumers to have tries. Powered by the technologythe same shopping experience MasterCard and Westpac behind Kalixa, Vincento’s flag-whether paying in-store, online launch new pilot application ship prepaid MasterCard card,or using their mobile device. In for mobile payments moneto is configured as a com-addition, the two companies will prehensive mobile commercedevelop services that allow small In Australia, MasterCard and solution that provides the con-business customers to accept Westpac have announced a new venience, control and flexibilitypayments using mobile devices, pilot contactless mobile pay- of mobile prepaid payments in awith more details scheduled for ment application for Android secure and mobile environment.release later in 2012. smartphones. The pilot will see android handsets equipped with The partners believe that the... and with Deutsche Tele- special secure NFC-enabled moneto mobile wallet servicekom in Germany SIM cards, meaning that no fur- differs from other mobile NFC ther hardware or accessories are programs as it will be availableFurthermore, with an initial fo- required. Linked to the users to most smartphone users irre-cus on Germany and Poland, virtual MasterCard debit card, spective of wireless carrier. Lat-MasterCard has put in place a the phone will be able to pay for er in 2012, iPhone consumerspartnership with Deutsche Tele- goods on an in-store basis at will be able to order the servicekom for the development of merchants accepting Master- directly from themobile payments. Specifically, Card PayPass payments. www.moneto.com website andthe agreement aims to make users will be able to link their www.finaccord.com 15

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Global Affinity Finance Club Affinity Bankingbank account or credit card to Buy Europe, Monitise, Visa Eu- SMS-based alerts, throughfund moneto prepaid accounts. rope and telecoms entrepreneur which they can check balances,Subsequently, the service will Charles Dunstone. generate mini-statements, findalso be available to Android ATMs and receive balance up-consumers in the UK and then Monitise combines with dates and alerts. The service isto additional European coun- Bank of China for mobile available to all customers of Thetries. payment programs in Hong Co-operative Bank registered Kong... for online banking as well as allMobile Money Network ena- accountholders of smile, thebles smartphone users to buy In Hong Kong, Bank of China banks dedicated online bank.direct from UK media group and Monitise have formed a partnership to explore new ways Targobank and BASE intro-In the UK, media group Associ- for people to make payments duce contactless mobile pay-ated Newspapers has signed a using their mobile phones. The ments in Germanystrategic deal with Mobile Mon- companies will jointly developey Network (MMN), adding the and launch mobile payment pro- Targobank, Crédit Mutuel’sfirms instant mobile checkout grams through the banks ser- consumer banking brand intechnology to its web and print vice channels in Hong Kong, Germany, and BASE, a tele-titles. Initially, the partnership where it has built a network of coms brand operated by E-Pluswill focus on the launch of a over 260 branches and 580 Gruppe, have launched a part-mobile checkout app powered ATMs. The services will employ nership for a contactless mobileby MMNs proprietary technolo- Monitise’s enterprise technology payments system which they saygy, enabling users to make pur- platform, used to process over 1 is the first of its kind in Germa-chases directly from the Daily billion transactions annually. ny. Customers can obtain aMail, the Mail on Sunday, select- Moreover, the schemes will MasterCard payment chip at alled shopping supplements, the build on the prior relationship BASE stores and TargobankMail Shop online and from of Monitise with ATM and pay- branches plus the two organisa-within the app itself. ment card company JETCO, tions respective websites. OnceSmartphone users will be able which has a payment system the chip is attached to a mobileinitially to identify and buy fea- supported by Bank of China in phone, customers can maketured products using a unique Hong Kong. payments at all terminals whichproduct code, with further func- are equipped with NFC technol-tionalities, including image ... and links with The Co- ogy. This new offer is availablerecognition, set to follow. operative Bank for mobile alongside a MasterCard credit payments and banking in the card issued by Targobank for aLater phases of the agreement UK fee of EUR 25 per year. Severalwill focus on driving sales con- German merchants, includingversion from advertiser cam- Meanwhile, Monitise has stated AppelrathCüpper, Christ, Doug-paigns featured across the port- that it will offer mobile payment las, Hussel and Thalia Buch-folio or from the Mail Shops and banking services to custom- handlungen have already startedown product range whether this ers of The Co-operative Bank as to operate NFC terminals whileappears in print, online or em- part of a three-year deal. Cus- others, such as ARAL,bedded within the app. MMN is tomers will have several options, EDEKA, familia, McDonald‘s,a joint venture between Best including smartphone apps and tegut and Tengelmann, are cur- www.finaccord.com 16

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Global Affinity Finance Clubrently planning to make this Wirecard works with plication. The customer thenform of payment system availa- Deutsche Telekom for Ger- only needs to enter a PIN toble. The two partners also an- man mobile payments initia- confirm the payment.nounced that they are working tives...on further products in the area ————————————of mobile payments and that In Germany, technology andthey intend to launch a mobile financial services provider Wire- ONLINE PAYMENTSwallet in the future. card has been selected by Deutsche Telekom as a strategic MasterCard links with eNettPartners pioneer contactless partner for its mobile payment International for travel indus-payments in the Czech Re- program. Wirecard will imple- try paymentspublic ment the technical processes for issuing a new co-branded Mas- MasterCard and eNett Interna-In the Czech Republic, terCard payment card, expected tional, a provider of specialistKomerční banka, Samsung, Te- later in 2012, and will support payment solutions for the travellefónica and Visa Europe have Deutsche Telekom in both pro- industry that is part-owned bylaunched what they consider to cessing payments and assisting Travelport, have signed anbe a breakthrough technology in with the preparation for the agreement which provides inno-payments. As of the final week launch of its mobile wallet, vative payment and reconcilia-of August 2012, the 2,000 fast- scheduled for 2013. tion solutions for the travel in-est-reacting owners of a Sam- dustry through the use of Virtu-sung Galaxy SIII handset could ... and with myTaxi for pro- al Account Numbers (VANs).simply swap their existing SIM cessing taxi fare payments via The partnership aims to facili-card with a special payment SIM smartphone tate high volumes of global pay-card. These SIM cards were ments over a five-year periodavailable for free at 19 special- In another deal involving Wire- and sets MasterCard up as theised O2 Guru stores across the card, it has disclosed that exclusive payment partner for allCzech Republic, with a pre- smartphone app myTaxi now eNett VANs generated in Eu-charged credit of CZK 250 pro- allows consumers to order and rope. The two organisations be-vided by Komerční banka, ena- pay for taxis through the same lieve that at a time when there isbling users to pay for goods and application, with technical sup- pressure in the travel sector toservices with their mobile port from Wirecard. The pay- cut costs and increase revenue,phones. This launch built upon ment service, launched in Ger- solutions like eNett VANs notthe success of a pilot project many in July 2012, is being in- only enable agents to focus oncarried out in 2011 which indi- troduced in stages international- revenue generation rather thancated that the market was ready ly throughout 2012 in several administration but also reducefor payments innovation. European cities. The myTaxi risk and help businesses to get application allows customers to more out of the valuable data locate nearby cabs and order that is in their possession. one to their location; the new payment feature allows the cus- ———————————— tomer to pay the taxi fare at the end of the journey, using a cred- it card securely linked to the ap- www.finaccord.com 17

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Global Affinity Finance ClubRETAILER CARDS Countdown stores. The new GENERAL launch follows the introductionCiti Retail Services rolls out of a gift card in 2011 and the Bankinter extends relation-new credit card with fuel re- development by Woolworths of ship with charity serving indi-tail chain a successful financial services viduals with hearing difficul- business in Australia. tiesIn the US, Citi Retail Services, adivision of Citigroup, and CIT- ... and renews multi-year In Spain, Bankinter has estab-GO, a fuel company, have credit card program with lished a co-operation agreementlaunched a new private-label Sams Club with the Confederación Estatalconsumer credit card that allows de Personas Sordas (CNSE) thatCITGOs customers to earn at a In the US, GE Capital Retail aims to facilitate access to bank-rate of 0.05 US dollars per gal- Bank, a consumer lending unit ing services to individuals withlon for fuel purchases at all of of GE, and Sam’s Club, a divi- acute hearing difficulties. Thisits outlets. Launched at the be- sion of Wal-Mart Stores, and a relationship will include the pro-ginning of September, the two leading membership warehouse vision of training services forpartners believe that the pro- club, have announced the re- bank employees so that they aregram is one of the most robust newal of their multi-year agree- better able to serve the needs ofrewards offerings in the indus- ment to continue providing a such individuals. This followstry. In particular, the new card credit card program to clubs on from similar partnershipsoffers customers a long-term members. Specifically, GE Capi- struck up with other charitablesavings opportunity with no tal’s retail finance business, an organisations including a previ-minimum or maximum purchas- operating entity that provides ous initiative with the CNSEes required. However, rewards financial solutions to retailers to which led to both the inclusionare only available in conjunction help grow their customer sales, of videos incorporating sign lan-with fuel purchases. will continue to manage the guage on the banks website and Sam’s Club relationship and to the development of a video-GE Capital links with New service the account. The financ- calling facility.Zealand supermarket chain ing program is available at morefor credit card launch... than 600 Sam’s Club locations Bank of Ireland and the UK across the US and Puerto Rico Post Office extend partner-In New Zealand, following a and can also be used at Wal- ship through to 2023tender process, GE Capital has Mart stores, as well as for onlinelaunched a new Visa credit card purchases through the Sams Bank of Ireland and the UKin association with Countdown, Club website and at all outlets Post Office have revealed thata supermarket brand belonging where the Discover card brand they have agreed a new contractto the Woolworths group, with is accepted. GE Capital Retail and operating model for thethe latter perceiving this to be a Bank began providing a net joint venture financial serviceslogical entry point for the super- term credit program for mem- business that will see their rela-market to enter the financial bers of Sam’s Club in 1993 with tionship continue through toservices sector. Each year, more revolving credit programs added 2023. Post Office Financial Ser-than 80 million payment card in 1995. vices (POFS), the joint venturetransactions are processed entity, has secured over 2.8 mil-through the network of 161 ———————————— lion customers in total since its www.finaccord.com 18

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Global Affinity Finance Clublaunch with deposit balances of and 3,600 ATMs, and so themore than GBP 17 billion, a new distribution deal will signifi-loan book of around GBP 3 bil- cantly expand the number oflion and with a range of insur- locations at which HSBC andance products also offered. First Direct customers can gain access to their money and inter-In future, the two companies act with their current accounts.intend to carry on developing arecognised consumer financial MasterCard links withservices brand in the UK that shopkick loyalty scheme spe-represents a serious alternative cialistto the major UK banks albeitwith banking products now sup- In the US, MasterCard has re-plied directly by Bank of Ireland vealed that it is joining forcesto the Post Office. Bank of Ire- with shopkick, a loyalty schemeland will continue to be respon- accessible via a smartphone appsible for product development that was introduced in Augustand delivery while the Post Of- 2010. Specifically, MasterCardfice will continue to have prima- cardholders are now able to earnry responsibility for product rewards and special offers fromsales and marketing and ensur- shopkick when making qualify-ing that all customer interactions ing purchases with a MasterCardmeet its brand values. card linked to the companys Buy & Collect program at par-HSBC agrees account access ticipating retailers across thedeal with the Post Office for country. The proprietary rewardUK customers currency, known as kicks, can be redeemed for gift cards, mu-In a second development in- sic downloads, movie tickets orvolving the UK Post Office, a other offers. Furthermore, innew agreement with HSBC addition to everyday opportuni-means that from spring 2013, ties to earn kicks, consumersHSBC and First Direct personal will receive 250 bonus kicks forcurrent account customers will each MasterCard card that theybe able to access their bank ac- link to the Buy & Collect pro-counts and carry out a range of gram for a limited period oftransactions at all 11,500 Post time. It is anticipated that theOffice branches around the UK. relationship will help merchantsServices to be made available to increase sales and betterunder this new partnership will measure the effectiveness ofinclude cash deposits and with- their location-based marketingdrawals, cheque deposits and efforts.balance enquiries. HSBC cur-rently operates 1,200 branches ————————————- www.finaccord.com 19

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Global Affinity Finance ClubOrganisations in this issueACE Group, 7 Electrolux, 6 Sberbank, 12AEG, 6 eNett International, 17 Schweizerische Mobiliar, 8Ageas, 7, E-Plus Gruppe, 16 Scotiabank, 13, 14Agricultural Bank of China, 12 eTRAVELi, 7 Scottish Friendly, 6AIR MILES, 10 Everything Everywhere, 14, 15 shopkick, 19Ally Financial, 11 familia, 16 Société Générale, 10American Bar Association, 4 Fédération Française de Golf, 10 Solid Försäkringar, 7American Express, 13 Finansbank, 9 Targobank, 16AppelrathCüpper, 16 First Direct, 19 tegut, 16ARAL, 16 Fujian Benz Automotive, 4 Telefónica, 17Aria Assistance, 4, Fujian Motor Industry Group, 4 Tengelmann, 16ASKY, 7 GCube, 7 Tesco Bank, 5Associated Newspapers, 16 GE Capital, 18 Thalia Buchhandlungen, 16Assurant, 7 Generali, 10 The Co-operative Bank, 16Aviva, 5 Genworth Financial, 8 The Walt Disney Company, 11AXA, 4, 6, 9 Glasbranschföreningen, 4 Tourism New South Wales, 14AXA Assistance, 4 HDFC Bank, 11 Towers Watson, 5Bank Danamon, 9 HSBC, 19 UK Post Office, 18, 19Bank Internasional Indonesia, 13 Hussel, 16 UnionBank, 12Bank of China, 16 ICBC, 9, 12 Uralsib Bank, 13Bank of Ireland, 18, 19 Indesit, 6 Videocon Industries, 8Bank of Tokyo-Mitsubishi UFJ, 10 Itaú Unibanco, 5 Vincento Payment Solutions, 15Bank of Xian, 14 JCB International, 13 Visa, 11, 12, 16, 17, 18Bankinter, 18 Jet Airways, 11 Wal-Mart Stores, 18BASE, 16 JetPrivilege, 11 Western Union, 12, 13BAWAG P.S.K., 10 John Lewis, 7, 8 Westpac, 15Best Buy Europe, 16 Komerční banka, 17 Wirecard, 17BGL Group, 6 Kotak Mahindra Bank, 14 Yorkshire Building Society, 8BMO Bank of Montreal, 10 Liberty Mutual, 8 Zanussi, 6BNP Paribas Cardif, 5 Lojas Americanas, 5 Zurich, 4, 6BNP Paribas Personal Finance, 12 Lumen, 6Cabcharge, 14 LV=, 5Cetelem, 12 Macquarie University, 14Chase, 11, 21 Magazine Luiza, 5China Everbright Bank, 12 Manulife, 9, 10China Minmetals Corporation, 9 MAPFRE Asistencia, 4China Mobile, 14 MAPFRE Warranty, 6China UnionPay, 12, 14 Marriott International, 11Christ, 16 MasterCard, 10, 11, 12, 14, 15, 16, 17, 19Chubb, 4 McDonalds, 16Cigna, 9 MDS, 5Circle Insurance Services, 4 Mitsubishi Motors, 11CITGO, 18 Mobile Money Network, 16Citi Retail Services, 18 Moderna Försäkringar, 4Citigroup, 18 MoneyGram, 12Club14, 6 Monitise, 16Commonwealth Bank of Australia, 14 Myanmar Oriental Bank, 13Concordia, 8 myTaxi, 17Confederación Estatal de Personas Sordas, 18 National Australia Bank, 14Countdown, 18 Nomura Securities, 10Crédit Mutuel, 16 Pannone, 4Daimler, 4, 6 PayPal, 13Deutsche Telekom, 15, 17 Porsche, 4DeviceFidelity, 15 Postal Savings Bank of China, 12Discover, 13, 18 RAC, 5, 7Domestic & General, 6 RSA, 8Douglas, 16 Sam’s Club, 18EDEKA, 16 Samsung, 17 www.finaccord.com 20

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Global Affinity Finance ClubAbout GAFC About Finaccord Finaccord is a leading market research, Does your organisation haveThe Global Affinity Finance Club is publishing and consulting company news about its affinity or part-Finaccord’s quarterly newsletter about specializing in financial services. We nership marketing relationshipsaffinity financial services worldwide. provide our clients with insight with a that we missed in this newslet-Through this, Finaccord publishes top particular focus on marketing and ter? To produce it, we systemat-line information about key strategic distribution strategies, including affini- ically research close to 300 ma-developments in affinity and partner- ty and partnership marketing. jor financial services institu-ship marketing of financial services Our areas of expertise include: affinity tions from around the worldaround the world, segmented between and partnership marketing; automotive each quarter. However, if youaffinity insurance news, bancassurance financial services; bancassurance; com- would also like us to includenews and affinity banking news. mercial non-life insurance brokers; your company in this research, consumer intelligence; creditor insur- please send an e-mail to analy-This service differs from that provided ance; distribution channels; extended sis@finaccord.com and we willby other research companies because warranties; insurance and assistance ensure that it is tracked in fu-its focus is genuinely global, often linked to payment cards and bank ture quarters.translating news that only appears in accounts; mobile gadget and telephonelanguages other than English. In addi- insurance; retailer financial services; To access the archive of newstion, it concentrates exclusively on small business financial services; and from the Global Affinity Fi-affinity and partnership marketing travel insurance and assistance. nance Club please visitstrategy. Our international network of consult- www.finaccord.com/afi ants is able to deliver informationAffinity and partnership marketing quickly and accurately across a rangestrategy is an important component of of countries worldwide, basing re-general distribution strategy for a ma- search projects on robust data andjority of large banks and insurance knowledge rather than suppositioncompanies serving consumers and and theory.small businesses as successful partner- © Finaccord Ltd., 2012ships potentially allow them to access Registered in London No. 4542931groups of customers that they cannot The Office Farringdonalways reach by themselves. 24 Greville Street London,If you would like to join Finaccord’s EC1N 8SSGlobal Affinity Finance Club, contact Phone: +44 20 3178 2556us by telephone or send us an email to Fax: +44 20 7198 7902info@finaccord.com. Thereafter, each Email: info@finaccord.comquarter, we will send you a link to the www.finaccord.compage of our website with fresh newsand future editions of this document. Finaccord’s latest published reports include:  Travel Insurance and Assistance in Northern, Central and Eastern Europe GBP 2,495  Travel Insurance and Assistance in Southern and Western Europe GBP 2,495  Commercial Non-Life Insurance Brokers in Northern, Central and Eastern Europe GBP 2,495  Commercial Non-Life Insurance Brokers in Southern and Western Europe GBP 2,495  Global Mobile Operators: Strategies in Insurance and Assistance GBP 1,995  Global Mobile Operators: Strategies in Payments and Banking GBP 1,995  Global Mobile Operators: Strategies in Payments, Banking, Insurance and Assistance GBP 2,995  Insurance and Assistance linked to Payment Cards and Bank Accounts in Northern, Central and Eastern Europe GBP 2,495  Insurance and Assistance linked to Payment Cards and Bank Accounts in Southern and Western Europe GBP 2,495  Payment Metrics: Consumer Attitudes towards and Usage of Traditional and Emerging Means of Payment in the UK GBP 1,995 www.finaccord.com 21