What is the Global Affinity Finance Club? Having had a European focus up to the end of 2010, every quarter from March 2011 onwards, Finaccord will continue to research and publish top line information about key strategic developments in affinity and partnership marketing of financial services around the world, segmented between affinity insurance news, bancassurance news and affinity banking news. This service differs from that provided by other research companies because its focus is genuinely global, often translating news that only appears in languages other than English. In addition, it concentrates exclusively on affinity and partnership marketing strategy, with no need for users to filter out irrelevant or unrelated information. Affinity and partnership marketing strategy is an important component of general distribution strategy for a majority of large banks and insurance companies serving consumers and small businesses as successful partnerships potentially allow them to access groups of customers that they cannot always reach by themselves. Moreover, it can also be a highly relevant topic for the partner entities themselves whether they are other financial institutions or organisations as diverse as automotive brands, charities, energy companies, internet or media firms, loyalty management entities, online aggregators and brokers, professional associations, retailers, sports clubs, telecoms firms, trade unions and travel companies.

1. AFFINITY INSURANCE
SPRING 2012
BANCASSURANCE
Global Affinity
AFFINITY BANKING
Finance Club
Finaccord’s newsletter about affinity financial services worldwide
Welcome back to your Club!
This quarter’s edition of the Global Affinity Finance Club includes
news about affinity and partnership marketing in financial services
from as many as 45 countries around the world.
Starting in the UK, an eye-catching initiative given the increasing
woes of the country’s banking sector is that of HSBC and Marks &
Spencer who intend to convert their existing M&S Money brand into
a full-service retail bank during 2012 with a plan for in-store branches
to eventually reach 50 of the retail group’s outlets.
Further afield, Chinese payments company UnionPay is visible in a
number of items that illustrate how it is seeking to increase its influ-
ence both within and outside of China.
Otherwise, deals have been coming thick and fast in the areas of as-
sistance and product insurance / warranties with new ventures men-
tioned involving the likes of Assurant Solutions, CarGarantie, Driven
Solutions, Europ Assistance, Jubilee, MAPFRE Asistencia, Mondial
Assistance, SPB and Ten Group.
Interestingly, in these areas, mobile operator brands are often cited as
the partners which illustrates how they are increasingly diversifying
into new areas of banking and insurance.
With best regards,
Alan Leach
Director
aleach@finaccord.com
For our published reports,
news and more please visit
www.finaccord.com

2. Global Affinity Finance Club
Table of contents
Affinity insurance News 4 Assurant Solutions renews deal with Bancassurance News 10
American Financial & Automotive Ser-
ASSISTANCE 4 vices... 6 CREDITOR INSRUANCE 10
Driven Solutions partners with My911 for ... and creates extended warranty partner- Genworth Financial wins mandate with
one-touch access to roadside assistance 4 ship with Best Buy subsidiary in China 7 Welsh building society 10
Europ Assistance and Fiat renew agree- Renault chooses CarGarantie for new LIFE INSURANCE / RETIREMENT
ment for road assistance in Europe... 4 extended warranty products 7 SAVINGS 10
...while Vodafone chooses Europ Assis- eSecuritel to offer warranty and insurance Barclays secures special terms from AE-
tance in Hungary 4 cover to customers of Cricket and MTS 7 GON for corporate protection solutions
10
MAPFRE Asistencia picks up motorcycle Jubilee ties with RAC and Santander Con-
assistance deal in India 4 sumer Finance for car dealer insurance Legal & General wins life insurance and
products... 7 pensions mandate with First Trust Bank...
Peugeot Scooters awards Italian roadside 10
assistance contract to MAPFRE Asistencia ... and works with Blue Insurances for
4 mobile gadget and collision damage waiver ... and is appointed exclusive partner for
cover 8 protection products by UK building soci-
Mondial Assistance extends road assis- ety 11
tance contracts with UK partners 5 MAPFRE Asistencia gains extended war-
ranty deal with Mexican telecoms com- MOTOR INSURANCE 11
Mondial Assistance wins home assistance pany 8
deal with online holiday rental company 5 Direct Line and Veneto Banca enhance
Orange appoints SPB as mobile insurance partnership with hotel stay offer 11
Citibank selects Ten Group for concierge provider in Belgium and Luxembourg 8
services in Hong Kong 5 GENERAL 11
TRAVEL INSURANCE 8
COMMERCIAL INSURANCE 5 RSA renews long-standing partnership
Allianz Global Assistance and Iberia re- with National Australia Group's UK bank-
CNA endorsed by two US state banking new travel insurance partnership 8 ing brands 11
associations 5
Europ Assistance wins travel insurance Talanx and Meiji Yasuda buy into Polish
MAPFRE enters into trade credit insur- contracts in France and the USA 9 bancassurance opportunity 11
ance joint venture with Euler Hermes 5
HanseMerkur broadens distribution part- ————————————————
LIFE INSURANCE 6 nership with JT Touristik 9
Affinity Banking News 11
Aviva wins five-year life protection affinity GENERAL 9
contract with Tesco 6 AFFINITY BANK ACCOUNTS 11
Allianz signs worldwide memorandum of
MS&AD invests in an Indian life insur- understanding with Western Union 9 BAWAG P.S.K. introduces affinity cur-
ance joint venture 6 rent accounts with retail chain 11
Gallagher Heath sets up new insurance
Sun Life and PVI Holdings form Viet- scheme with medical charity 9 BNP Paribas offers savings account in
namese life insurance company 6 association with Habitat 11
Sanitas and Swiss Life expand their exist-
PRODUCT INSURANCE / WARRAN- ing distribution agreement 10 Newcastle Building Society launches affin-
TIES 6 ity savings with local cancer charity 12
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3. Global Affinity Finance Club
AFFINITY CARDS 12 Wells Fargo and HDFC Bank partner to ... adding to a growing roster of mobile
create new US-India remittance service 15 money transfer agreements around the
BMO launches a co-branded card pro- world 19
gram with three Canadian soccer teams 12 Western Union teams up with quartet of
banking institutions in the US... 15 ONLINE PAYMENTS 19
Société Générale continues to extend its
range of affinity cards 12 ... and renews money transfer contract Microsoft and UnionPay tie for online
with Spanish post office 15 payments in China 19
AUTOMOTIVE FINANCE 12
INTER-BANK CARD DISTRIBUTION Western Union launches WU Pay online
Forest River adds Ally Financial as whole- 16 payment platform 19
sale finance provider 12
JCB increases card circulation with China RETAILER BANKING 20
GMAC secures finance deals with Opel in and Indonesia through new relationships...
Chile and MG Motor in the UK 13 16 HSBC and M&S to offer full retail bank-
ing services and very long opening hours
GE Capital Retail Bank extends consumer ... and signs up to merchant licensing 20
lending scheme with Yamaha 13 agreement with African bank 16
Scotiabank expands ATM network
BUSINESS BANKING 13 UnionPay secures card distribution links through deal with 7-Eleven and Cardtron-
with two further Korean card issuers... 16 ics 20
Italian banks establish new affinity bank-
ing deals with trade associations 13 ... and ties with merchant acquirers in RETAILER CARDS 20
Denmark and Iceland 16
Sberbank links with Russian Guild of American Express introduces prepaid
Realtors for mort 14 MOBILE BANKING 16 cards with two major US retail chains... 20
CO-BRANDED CARDS 14 Monitise rolls out new mobile banking ... and through Zynga Serve Rewards with
partnerships in Indonesia and the UK 16 a provider of social games services 20
Barclaycard unveils new Black Visa card in
partnership with international hotel group MOBILE PAYMENTS 17 Chase extends its card issuing relationship
14 with Amazon in North America 21
Barclaycard and Orange seek to expand
Billpay ties with Hanseatic Bank and Visa usage of contactless payment service 17 GE Capital Retail Bank extends two tyre
for credit card linked to loyalty program finance partnerships 21
14 BOKU secures payments partnerships
with Deutsche Telekom and Sprint 17 Scotiabank and SportChek announce a
Chase launches US co-branded card prod- new range of NHL credit card products 21
uct for Fairmont Hotels and Resorts… 14 PayPal and Softbank establish Japanese
digital payments joint venture 17 UnionPay enters into strategic agreement
…and Ritz-Carlton becomes a points with Shell in China 22
transfer partner for Chase Ultimate Re- UnionPay kicks off mobile payments col-
wards 14 laboration with China Mobile 18 RETAILER FINANCE 22
Commerzbank and German football fed- Visa Europe secures mobile payments Ikano and Credit Europe Bank tie up for
eration launch co-branded credit card 14 partnership with Telefónica 18 Russian joint venture 22
CONSUMER FINANCE 15 VocaLink ties with Clairmail for advanced DFS selects LaSer UK for retailer finance
mobile banking and payments 18 venture in Ireland 22
Cetelem offers point-of-sale finance for
Bombardier Recreational Products 15 Western Union links with MTN for inter-
national mobile payments service... 19
INTERNATIONAL REMITTANCES 15
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4. Global Affinity Finance Club
Affinity Insurance
Affinity Insurance News Europ Assistance and Fiat MAPFRE Asistencia picks up
renew agreement for road as- motorcycle assistance deal in
ASSISTANCE sistance in Europe... India
Driven Solutions partners Europ Assistance has been the By means of India Assistance,
with My911 for one-touch ac- road assistance partner for Fiat the company through which it
cess to roadside assistance group in Europe since 1995, and has been active in India since
the two partners have an- 2008, MAPFRE Asistencia has
North American road assistance nounced that this agreement has won a mandate with motorcycle
specialist Driven Solutions (part been renewed for a further four manufacturer Piaggio to provide
of Drive America Holdings) has years. It covers the Abarth, Alfa roadside assistance to customers
signed a distribution partnership Romeo, Fiat, Jeep and Lancia driving Vespa motorcycles. The
with My911, a provider of emer- marques in France, Germany, deal is significant given that In-
gency-related solutions and Hungary, Italy, the Netherlands, dia is the world's second largest
communications services, by Portugal and Switzerland, which market by volume for motorcy-
means of which users of the amounts to 80% of Fiat group cles with sales of around 13 mil-
My911 service are now able, via vehicles on the road. The ser- lion units in 2011. Piaggio has
their mobile phones, to auto- vices offered include roadside been present in India since 1999
matically summon help from the rescue in case of accidents or and possesses a network of over
local emergency services in the breakdown (including flat bat- 800 dealer outlets although its
event of accident or breakdown, tery, lack of fuel or punctured prestige Vespa brand has been
with additional options for road tyre), plus a replacement car or promoted only since April 2012.
assistance. alternative transportation to
reach a destination, with cover- Peugeot Scooters awards Ital-
The technology uses GPS track- age 24 hours a day, seven days a ian roadside assistance con-
ing, works across several mobile week. tract to MAPFRE Asistencia
platforms (including Android
and iOS) and can also be inter- ...while Vodafone chooses In Italy, MAPFRE Asistencia
faced with most cars' engine Europ Assistance in Hungary has won an agreement with Peu-
management and diagnostic sys- geot Scooters, the company be-
tems. This allows the phone to Meanwhile, Vodafone Hungary longing to Peugeot Citröen that
report accidents and serious has announced that customers specialises in motor cycles, for
problems and to summon help can now use their smartphones the provision of both roadside
even if the driver is uncon- to access assistance services di- assistance and general customer
scious. In less critical situations, rectly through a new partnership services. These will be provided
pushing the My911 roadside with Europ Assistance. Custom- by means of a free telephone
assistance button will result in ers can register online to sub- number available on a 24/365
the driver being connected to a scribe to the AutoSOS app, the basis. With regards to the road-
Driven Solutions customer care price of which is added to their side assistance proposition, the
centre. monthly mobile phone invoice. service means that customers
who break down with a repair
time of more than 36 hours will
be either returned to their point
of departure or taken to their
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5. Global Affinity Finance Club
Affinity Insurance
destination. MAPFRE Asisten- Mondial Assistance wins darin. It is intended that card-
cia has been active in Italy since home assistance deal with holders based in Hong Kong
2006 and, since then, has built online holiday rental com- will benefit from the connec-
up a strong position in the pany tions and expertise of Ten’s life-
country's extended warranty style managers in both Hong
market. Moreover, it also man- Meanwhile, in France, Abritel, a Kong and, if required, any of its
ages breakdown repair services leading online holiday rental other offices worldwide.
on behalf of more than 1,000 company, has signed a partner-
dealerships across the country. ship with Mondial Assistance ————————————--
through the broker Innoserve in
Mondial Assistance extends order to offer home emergency COMMERCIAL INSURANCE
road assistance contracts insurance and assistance to the
with UK partners owners of holiday homes and CNA endorsed by two US
apartments who do not live near state banking associations
In the UK, Volvo has disclosed their properties. Abritel, the
that it is working with Mondial French subsidiary of the CNA has announced that it has
Assistance to offer service- HomeAway group, has over been endorsed by two state
activated roadside assistance to 280,000 properties offered for banking associations in the US:
its customers. Specifically, rent worldwide, including the Arkansas Bankers Associa-
Volvo customers who have a 70,000 in France. This policy is tion (ABA) and the California
full manufacturer's scheduled offered to owners who use Bankers Association (CBA).
service carried out at a Volvo Abritel to rent their properties; Both have selected the insurer
authorised repairer are given 12 coverage includes kitchen appli- as the preferred provider of spe-
months of complimentary road ances, boilers, air conditioning, cialised coverage for the associa-
assistance, operated by Mondial blinds, and electrical and plumb- tions' member institutions.
Assistance. Volvo has posi- ing equipment, with emergency CNA's portfolio of cover for
tioned this as a way to increase help available 24 hours a day, banks and financial institutions
customer loyalty; it reports that seven days a week. In case of a includes liability cover for direc-
it carries out more than 40,000 failed boiler or water heater, tors and officers, bankers' pro-
services a year through its ap- Mondial Assistance also offers fessional liability, lender liability,
proved network, and that many to relocate tenants. employment practices liability,
of these will qualify for free as- fiduciary liability, property and
sistance, which costs up to GBP Citibank selects Ten Group casualty insurance, cyber liability
99 for a year if purchased sepa- for concierge services in and information risk and fidelity
rately. Hong Kong bonds, as well as the provision
of a dedicated banking support
Separately, Mondial Assistance In Hong Kong, Citigroup has team.
has renewed a partnership it be- selected concierge provider, Ten
gan with HSBC in the UK in Group, to supply lifestyle conci- MAPFRE enters into trade
2008 for a further three years. erge services to affluent custom- credit insurance joint venture
This partnership is focused on ers with Citibank Ultima credit with Euler Hermes
the provision of road assistance cards. The service will operate
to HSBC Advance and first di- on a 24/7 basis and be provided With a focus on Spain and four
rect customers. in English, Cantonese and Man- countries in Latin America –
www.finaccord.com
5

6. Global Affinity Finance Club
Affinity Insurance
namely, Argentina, Chile, Co- and critical illness cover. These and life insurance penetration
lombia and Mexico - MAPFRE products will be available online still remains fairly low by inter-
has entered into a joint venture via Tesco Bank or over the tele- national standards.
with Euler Hermes, an insur- phone, and customers will also
ance group specialising in trade be able to obtain information Sun Life and PVI Holdings
creditor insurance that is con- about them through some of form Vietnamese life insur-
trolled by Allianz. Subject to Tesco’s network of around ance company
authorisation by the relevant 2,900 stores. This expands
local authorities, the joint ven- Tesco’s existing relationship In Vietnam, Sun Life Assurance
ture, which is owned equally by with Aviva which already pro- Company of Canada (part of
each party, will commence busi- vides a private medical insur- Sun Life Financial) has agreed to
ness from the start of 2013 and ance scheme for Tesco’s em- form a life insurance joint ven-
should achieve gross written ployees. ture with PVI Holdings, a Viet-
premiums of around EUR 135 namese insurance and invest-
million in its first year. The joint MS&AD invests in an Indian ment group. The new company
venture aims to combine MAP- life insurance joint venture will be known as PVI Sun Life,
FRE's strong distribution capa- in which PVI Holdings will be
bilities in Spain and Latin Amer- Japan's MS&AD Insurance the majority shareholder (with
ica with the expertise of Euler Group has agreed to acquire 51% of equity), with all remain-
Hermes in the specific field of from US firm New York Life ing shares being held by Sun
trade credit insurance, which 26% of the Indian insurer Max Life Financial. PVI Holdings is
includes an ability to analyse the New York Life Insurance Com- currently active in the Vietnam-
financial stability of around 40 pany. The new company, whose ese markets for both life and
million businesses around the majority shareholder will con- non-life insurance plus reinsur-
world. tinue to be Max India Group, ance and other financial ser-
will be known simply as Max vices. The group, which ac-
————————————-- Life Insurance Company. This counts for around a fifth of the
new venture (which constitutes country's non-life insurance
LIFE INSURANCE the maximum foreign owner- market, generated premiums of
ship permitted under Indian USD 202 million in 2011.
Aviva wins five-year life pro- regulatory law) will mean that
tection affinity contract with MS&AD is active in five over- ————————————--
Tesco seas life insurance markets
within the Asia-Pacific region. PRODUCT INSURANCE /
In the UK, Aviva and Tesco As part of the capital alliance, WARRANTIES
Bank, a retailer bank owned by MS&AD will also dispatch vari-
supermarket chain Tesco, have ous employees to the renamed Assurant Solutions renews
established a partnership for life Indian firm, with two of these deal with American Financial
protection products with a dura- being due to serve as directors. & Automotive Services...
tion of five years. The agree- Fuelled by dramatic increases in
ment, which will begin later in the number of middle-class citi- In the US, Assurant Solutions, a
2012, will involve the distribu- zens, India's life insurance mar- global provider of extended ser-
tion of Aviva's main protection ket has averaged 24% growth vice contracts, has announced
products including life insurance per annum over the past decade, an extension of its long-term,
www.finaccord.com
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7. Global Affinity Finance Club
Affinity Insurance
exclusive relationship with new car, and this decreases rap- tiers of coverage: the so-called
American Financial & Automo- idly after expiry of the manufac- Complete Program covers acci-
tive Services. By means of this, turer warranty; it is expected dental damage (including liquid
customers who purchase vehi- that more customers will take damage), loss, theft and mal-
cles at any of American Finan- out these contracts when they function after the warranty ex-
cial's affiliated dealerships in the hold an extended warranty. pires; the Enhanced Program
US and elsewhere will be of- covers accidental damage, loss
fered vehicle extended service The BestTime warranty being and theft; and the Extended
plans from Assurant Solutions, introduced by Renault and Warranty Program covers mal-
just as they have since 2000. Dacia runs for either 12 months function or mechanical failure
or for 24 months up to 100,000 after the manufacturer's war-
... and creates extended war- kilometres, following the end of ranty expires.
ranty partnership with Best the manufacturer's warranty. At
Buy subsidiary in China the expiry of the warranty, cus- In the US, Cricket Communica-
tomers can choose to buy an- tions is also offering an eSecu-
Meanwhile, in China, it has en- other year's cover up to a maxi- ritel extended warranty and in-
tered into a partnership with mum of ten years after initial surance product to its custom-
Five Star, a wholly-owned affili- registration and up to 200,000 ers. This covers a range of de-
ate of Best Buy, whereby Assur- kilometres. The warranty is tied vices, including tablets, giving
ant Solutions will serve as the to the vehicle and thus transfers protection against accidental
exclusive provider of extended to a new owner when the car is damage, loss and theft, as well
protection products and services sold. as technical malfunction and
for more than 200 stores in other issues experienced beyond
mainland China. The contract is eSecuritel to offer warranty the handset manufacturer’s con-
exclusive and has a duration of and insurance cover to cus- ventional warranty.
five years. Assurant Solutions tomers of Cricket and MTS
began offering extended protec- Jubilee ties with RAC and
tion programs and related ser- In North America, handset in- Santander Consumer Finance
vices in China in 2007. surance and extended warranty for car dealer insurance prod-
provider eSecuritel, a subsidiary ucts...
Renault chooses CarGarantie of Brightstar, has disclosed two
for new extended warranty new partnerships for specialised In the UK, Jubilee Insurance
products mobile phone cover. Canadian has disclosed a first step into the
mobile network MTS Allstream market for niche insurance
In Germany, Renault has signed and US-based prepaid network products sold through automo-
a new partnership with CarGa- Cricket Communications have tive dealers by means of a new
rantie for extended warranties both agreed to offer eSecuritel's partnership established with
for Renault and Dacia cars customised insurance and ex- RAC and Santander Consumer
whose manufacturer warranty is tended warranty products to Finance. Specifically, the Lloyd's
about to expire. It notes that their customers. entity has been appointed by the
this will be a major benefit to RAC as the underwriter for a
car dealers because only 30% to MTS customers will be offered range of new products, the first
40% of customers buy a service eSecuritel's wireless protection of which to launch are a com-
and maintenance contract with a program, which offers three bined tyre and alloy wheel pro-
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8. Global Affinity Finance Club
Affinity Insurance
tection policy and a minor acci- UK, focused on mobile gadget Orange appoints SPB as mo-
dental damage policy which are and collision damage waiver in- bile insurance provider in
specifically targeted at the dealer surance. Jubilee's appointment Belgium and Luxembourg
partners of Santander Consumer will see it building on Blue In-
Finance. surances' existing gadget insur- SPB has announced that it has
ance product, launched in 2010, taken over the insurance pro-
The scheme has been designed with an all-risks scheme that grams of Mobistar, the Orange
to provide dealers with insur- provides customers with a operator in Belgium, and of Or-
ance cover on a scale usually claims replacement programme ange Luxembourg. There are
only available to larger dealer- managed in Ireland by Jubilee’s two policies available, one for
ships and it is anticipated that claims service partner Out- private customers and another
the range of products will help source Services Group (OSG), for professionals, which cover
them to both extend their cus- an independent, specialist out- theft, accidental damage, break-
tomer relationships at the point sourcing firm. Meanwhile, the down and fraudulent use of mo-
of sale and in after-sales activi- collision damage waiver cover bile phones. The partnership
ties. Also, by enabling dealers to will be offered alongside Blue between SPB and Orange began
undertake their own repairs, it is Insurances' travel insurance in France in 2002 and now ex-
hoped that the scheme will help product providing higher limits tends to five European coun-
to enhance both financial ser- of cover compared to its previ- tries: Belgium, France, Luxem-
vices margins and customer re- ous scheme, and also offering bourg, Spain and Switzerland. In
tention. The new scheme is the supplemental liability cover for addition, SPB has launched an-
first of a number of RAC- North America. other new service for Orange
branded products being devel- customers called Point Service
oped to support the extension MAPFRE Asistencia gains Mobiles, provided by an epony-
of its product portfolio. extended warranty deal with mous company. This allows Or-
Mexican telecoms company ange customers to have their
The scheme will be marketed phone repaired or replaced in
initially via around 3,000 dealers In Mexico, MAPFRE Asistencia under 40 minutes at a location
that use Santander Consumer has been selected by Telmex, a near their home. SPB acquired a
Finance and will be sold along- telecoms company owned by majority interest in Point Service
side car sales and finance pack- América Móvil, as its provider Mobiles in February 2012.
ages. of extended warranties sold in
conjunction with mobile com- ————————————--
... and works with Blue Insur- puting products. The proposi-
ances for mobile gadget and tion is available to customers TRAVEL INSURANCE
collision damage waiver acquiring mobile computing
cover products from any of the 388 Allianz Global Assistance and
retail outlets belonging to Tel- Iberia renew travel insurance
Another affinity relationship mex and who take out the asso- partnership
created by Jubilee Insurance is ciated card. MAPFRE Asisten-
that with insurance broker Blue cia has been active in Mexico Allianz Global Assistance and
Insurances, a prominent pro- since 1991. Iberia have announced the sign-
vider of travel and niche insur- ing of a renewed partnership
ance policies in Ireland and the agreement for a further three
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9. Global Affinity Finance Club
Affinity Insurance
years, covering the sale of travel customers purchasing rail tickets GENERAL
insurance policies via the air- from the www.tgv-europe.com
line's website. This partnership and www.raileurope.co.uk web- Allianz signs worldwide
was originally signed in 2006, sites. memorandum of understand-
and has since then expanded to ing with Western Union
a total of 19 countries, including Meanwhile, in the USA, Protect
Brazil, France, Italy and the US, Your Bubble has chosen CSA At a global level, Allianz and
as well as Spain. Travel Protection, an American Western Union have signed a
subsidiary of Europ Assistance, memorandum of understanding
Europ Assistance wins travel for its travel insurance proposi- to develop, design and distribute
insurance contracts in France tion. Protect Your Bubble insurance products in several
and the US launched in the UK to cover countries around the world. The
everyday 'little things' such as two partners intend to work
In France, Europ Assistance has holidays, pets and smartphones, closely to develop solutions for
won the contract to supply and has now entered the US customers with the aim of
travel insurance alongside the market with a similar concept. reaching millions of potential
sale of train tickets by Voyages- clients. In turn, opportunities
sncf.com, a subsidiary of SNCF, HanseMerkur broadens dis- will also be explored for the
the country's national railway tribution partnership with JT marketing of Western Union
network. This contract is for Touristik products to the customers of
three years running from the Allianz.
start of July 2012, and follows a Ha nse Me rkur Re iseve rsi-
tender process that began in au- cherung, the travel insurance Gallagher Heath sets up new
tumn 2011; the previous pro- division of Hamburg-based insurance scheme with medi-
vider was Mondial Assistance. HanseMerkur, and JT Touristik, cal charity
a Berlin-based tour operator,
This programme is being intro- have announced the extension In the UK, Gallagher Heath In-
duced during the second half of of a distribution agreement al- surance Services (GHIS) has
2012 across the nine European ready running since 2008. The established a partnership with
countries where Voyages- new agreement includes a Pancreatic Cancer UK to pro-
sncf.com manages the sale of broader number of insurance vide an insurance proposition to
train tickets, beginning with the products than before as JT individuals affected by the con-
actual www.voyages-sncf.com Touristik will not only sell travel dition, as well as their carers and
website. health insurance but will also other supporters of the charity.
market travel interruption and Specifically, the GHIS team has
By the end of the year, it is travel inconvenience cover un- designed a scheme which in-
planned to cover all mobile sales derwritten by HanseMerkur cludes travel, household and
(i.e. the www.voyages-sncf.mobi Reiseversicherung. motor insurance packages. In
site) and the Horaires et Résa particular, the travel product
application which is currently ————————————-- includes the ability to cover the
available for iPhone and iPad, whole travelling party under the
Android, BlackBerry and Win- same policy with premiums cal-
dows Phone 7 devices. It will culated on the basis of each in-
also be extended to international dividual’s declaration in terms of
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10. Global Affinity Finance Club
Bancassurance
age, pre-existing and declared Bancassurance News to be accepted in place of AE-
medical conditions, and destina- GON’s usual financial require-
tion. The cover is being under- CREDITOR INSURANCE ments. As part of this arrange-
written by a panel of insurers, ment, the clients of Barclays will
ranging from the Lloyd’s market Genworth Financial wins potentially receive: an individual
to composite insurance compa- mandate with Welsh building pricing facility that may poten-
nies. In future, GHIS and Pan- society tially make the prices quoted
creatic Cancer UK also antici- among the best in the market;
pate introducing life insurance In the UK, the Wales-based immediate cover for clean appli-
products. Monmouthshire Building Soci- cations while medical underwrit-
ety has appointed Genworth ing is taking place; mobile medi-
Sanitas and Swiss Life ex- Financial as its new mortgage cal checks and detailed medical
pand their existing distribu- indemnity insurance provider. reports; and enhanced service
tion agreement The agreement came into force standards including prioritised
in May 2012 and aims to pro- follow-up of outstanding infor-
In Switzerland, Sanitas, one of vide a practical and viable solu- mation in order to further re-
the largest health insurance pro- tion for mortgage borrowers. duce time between application
viders in the country, and Swiss and completion.
Life have launched a program ————————————--
called Swiss Life SimplyCare Legal & General wins life in-
which complements their exist- LIFE INSURANCE / RE- surance and pensions man-
ing distribution agreement. TIREMENT SAVINGS date with First Trust Bank...
Swiss Life SimplyCare combines
mandatory basic health coverage Barclays secures special Legal & General and First Trust
with supplementary insurance terms from AEGON for cor- Bank, a banking brand of AIB
for inpatient and outpatient care porate protection solutions with 48 branches in Northern
to create a customised health- Ireland, have announced a long-
care plan. With their launch of In the UK, Barclays Corporate term joint distribution agree-
this new health insurance con- & Employer Solutions (Barclays ment for a range of life insur-
cept which is available exclu- C&ES), the employee benefits ance, investment and pension
sively through Swiss Life advi- and worksite marketing arm of products. First Trust's financial
sors, Sanitas and Swiss Life have Barclays, has agreed special consultants will sell Legal &
reinforced their joint distribu- terms with AEGON to supply General products throughout
tion and market development corporate protection solutions the branch network on an ap-
partnership. While Sanitas aims to its small and medium-sized pointed representative basis,
to boost Swiss Life’s sales of life business clients. While Barclays using Legal & General's Retail
insurance products, Swiss Life C&ES offers advice and services Distribution Review (RDR)
helps to promote the marketing from the whole of the market, model for banks and building
and distribution of the health the special arrangement with societies.
insurance products offered by AEGON is designed to offer
Sanitas. clients a differentiated proposi-
tion. Specifically, AEGON has
————————————-- worked with Barclays to enable
the bank’s financial underwriting
www.finaccord.com
10

11. Global Affinity Finance Club
Affinity Banking
... and is appointed exclusive GENERAL suda taking 28% and Getin
partner for protection prod- Holding retaining 16.5%.
ucts by UK building society RSA renews long-standing
partnership with National ————————————
In addition, Legal & General Australia Group's UK bank-
has also won a new business ing brands Affinity Banking News
partnership with the Mansfield
Building Society for the provi- In the UK, RSA has disclosed A FF I NI TY BA N K AC-
sion of protection products. the renewal of its partnership COUNTS
Specifically, Legal & General for household and motor insur-
will now provide mortgage- ance with the Clydesdale Bank BAWAG P.S.K. introduces
related and family-related pro- and Yorkshire Bank networks affinity current accounts with
tection cover to be sold on an for a further five years. Accord- retail chain
exclusive basis by the building ing to the two partners, the deal
society's dedicated team of means that both new and exist- In Austria, BAWAG P.S.K., a
mortgage specialists. ing customers buying through retail bank owned ultimately by
these two subsidiaries of Na- private equity firm Cerberus
————————————-- tional Australia Group, will Capital Management, has en-
benefit from newly-developed tered into a partnership with
MOTOR INSURANCE products, providing them with a Tchibo, an international retail
range of insurance to suit their and coffee house chain, to dis-
Direct Line and Veneto individual needs. tribute current account prod-
Banca enhance partnership ucts. The accounts, branded as
with hotel stay offer Talanx and Meiji Yasuda buy KontoBox Gold, can be pur-
into Polish bancassurance chased across all 140 Tchibo
In Italy, Direct Line and Veneto opportunity stores in Austria and also in-
Banca, which have been part- clude a credit card.
ners for motor insurance for In Poland, Talanx International
over ten years, are offering cus- and Japan Meiji Yasuda Interna- BNP Paribas offers savings
tomers who buy motor insur- tional Life Insurance have com- account in association with
ance at one of the bank's pleted a joint acquisition of in- Habitat
branches a complimentary one surer Europa Group from Getin
night stay at any of the three Holding enabling them to enter In France BNP Paribas has
and four star hotels participating the country's bancassurance launched a savings account in
in the scheme nationwide. market. In December 2011, partnership with Habitat, named
Getin Holding, the owner of the Compte Epargne Maison
————————————-- Idea Bank, had announced its (Home Savings Account), fol-
intention to launch a bancassur- lowing the success of a previous
ance partnership with the two Holiday Savings Account
insurers once the sale of Europa launched in July 2011 with Voy-
Group was completed. Under ages-sncf.com. This savings ac-
the terms of the agreement, Ta- count is only available online
lanx will own 50% of the equity and offers customers a discount
capital of Europa with Meiji Ya- of 15% on purchases made in
www.finaccord.com
11

12. Global Affinity Finance Club
Affinity Banking
Habitat stores in France and AFFINITY CARDS card with the rugby club Stade
Monaco or on the Habitat web- Toulousain plus a business pay-
site. BMO launches a co-branded ment card targeted at entrepre-
card program with three Ca- neurs that support France Initia-
Moreover, it is an instant access nadian soccer teams tive, an association that provides
account and carries an interest finance and support for new
rate of 1.50% (gross) with a pos- In Canada, BMO Bank of enterprises. In addition, it has
sible 'loyalty bonus' of 0.25%. Montreal, which has been launched a new version of its So
BNP Paribas notes that French closely associated with soccer in Music Rolling Stones payment
households spend an average of the country for several years, card, and reported that it had
between EUR 1,000 and EUR has launched the BMO Major issued 28,000 cards in this col-
4,000 on furniture and furnish- League Soccer MasterCard pro- lection following launch in De-
ings each year, which implies a gram with three teams, namely cember 2009.
saving of EUR 150 and EUR Montreal Impact, Toronto and
600 through this partnership; Vancouver Whitecaps. With an ————————————--
note that the interest rate is no estimated 2.6 million Canadians
higher than for the standard sav- playing both competitively and AUTOMOTIVE FINANCE
ings account, so the benefit to casually, soccer is Canada's high-
customers comes from this dis- est participation sport, and is Forest River adds Ally Finan-
count. also very keenly followed. These cial as wholesale finance pro-
new affinity credit cards will al- vider
Newcastle Building Society low fans of the above teams to
launches affinity savings with benefit from added-value fea- Forest River, a manufacturer of
local cancer charity tures at games and venues, in- recreational vehicles in the US
cluding a dedicated stadium en- has selected Ally Financial as an
In the UK, the Newcastle Build- trance for BMO customers, a additional provider for dealer
ing Society has launched an ISA chance to participate in the offi- inventory financing. Eligible
(Individual Savings Account) cial coin toss before the game, dealers can receive an interest
affiliated with local cancer char- and the opportunity to win seat rebate from Forest River for
ity the Sir Bobby Robson Foun- upgrades or hospitality vouch- units sold to retail customers
dation. The new account, called ers. within 90 days of invoice. In
the Sir Bobby Robson Founda- addition to wholesale financing,
tion ISA, which was launched Société Générale continues to Ally is also offering dealers real
on the foundation's fourth anni- extend its range of affinity estate and commercial loans,
versary, pays a variable rate of cards inventory insurance, remar-
up to 2.60% gross AER with keting services for trade-ins of
free withdrawals, while paying In France, Société Générale has recreational vehicles, and con-
an additional 0.10% to the Sir launched two new charity cards, sumer financing to support new
Bobby Robson Foundation it- one with the Emmaüs Solidarité and used sales.
self. association and another with the
Fédération Française Handis-
————————————-- port, a charity that helps handi-
capped people to play sport. It
has also introduced an affinity
www.finaccord.com
12

13. Global Affinity Finance Club
Affinity Banking
GMAC secures finance deals GMAC for new, demonstrator newed an agreement with Rete
with Opel in Chile and MG and used vehicle inventory. This Imprese Italia (a body that itself
Motor in the UK initiative expands on the existing brings together five separate
preferred retail financing rela- bodies - Casartigiani, CNA,
In Chile, Opel and GMAC, a tionship between the two com- Confartigianato, Confesercenti
subsidiary of Ally Financial, panies established in October and Confcommercio) to support
have announced a new strategic 2011. its members with a fund worth
alliance for automotive finance. EUR 5 billion. Rete Imprese
GMAC’s funding, which can GE Capital Retail Bank ex- Italia represents around 2.6 mil-
cover up to 100% of the cost of tends consumer lending lion enterprises employing some
a vehicle, has several options scheme with Yamaha 11 million professionals who
including conventional financing themselves constitute 60% of
ranging from four to 60 months In conjunction with Yamaha the Italian workforce.
and a program called Smart Buy Motor Corporation, GE Capital
which is an alternative for cus- Bank has announced a multi- Secondly, it has created an
tomers who like to renew their year renewal of an instalment agreement with Unionfidi to
cars frequently and incorporates lending program. Since the Ya- support SMEs in the north-west
the option for including mainte- maha program began in 2004, of Italy, this time through a
nance. more than USD 2 billion of new fund of EUR 20 million to be
and pre-owned power sports used for both lines of credit
In addition, Opel customers can equipment has been financed with a duration of up to 18
choose a program called 50/50 and the program is available months and longer-term invest-
by means of which the customer through around 1,700 Yamaha ments. This sum is being added
provides 50% of the value of motor sports and watercraft to an existing fund of EUR 1.2
the car as a down-payment, pays dealerships for purchases of ve- billion available to enterprises in
12 instalments of interest and hicles, parts, garments and ac- the Liguria, Piedmont and Valle
then pays the remaining 50% of cessories. d'Aosta regions plus a further
the cost in the last instalment. facility of EUR 500 million ear-
The GMAC financing system ————————————-- marked for the leasing of capital
enables dealers to offer a per- goods.
sonalised plan that calculates BUSINESS BANKING
payments for the customer us- Thirdly, BNL (owned by BNP
ing an iPad and the vendor is Italian banks establish new Paribas) is working with Confidi
then able to approve a loan affinity banking deals Sardegna, a trade association
within 20 minutes. based in Sardinia, to support
In Italy, as has often been the local SMEs with a fund worth
Furthermore, in the UK, MG case in previous quarters, several EUR 20 million. Grants made
Motor, a niche car manufacturer banks have established new from this fund can be invested
brand, has appointed GMAC agreements with trade associa- in both operational management
UK as its preferred wholesale tions with the aim of supporting and the development of projects
financing provider for dealer- small and medium-sized enter- both in Italy and abroad.
ships. This means that MG deal- prises (SMEs).
ers are now able to obtain Finally, Veneto Banca has made
wholesale financing from Firstly, Intesa Sanpaolo has re- a fund worth EUR 100 million
www.finaccord.com
13

14. Global Affinity Finance Club
Affinity Banking
available to support SMEs based has around 60 million members and Resorts. Fairmont is a lux-
in the Friuli-Venezia-Giulia re- worldwide - to earn more points ury brand owned by FRHI
gion for medium- and long-term on hotel stays and purchases Holdings, whose other hotel
project financing. This is being which can then be redeemed for brands include Raffles and
made available through Confidi free nights or for many other Swissôtel. In total, the group
Pordenone, a local organisation rewards. Specifically, customers controls more than 100 luxury
offering loan guarantees. with a Black Visa card are re- hotels and resorts. Holders of
warded with double the amount the Fairmont Visa Signature
Sberbank links with Russian of points compared to the stan- card will earn Fairmont Rewards
Guild of Realtors for mort- dard Visa card, earning them with all of their purchases, and
gage lending deal four points for every GBP 1 cardholders spending more than
spent at IHG hotels and two USD 1,000 within the first three
In Russia, Sberbank and the points for every GBP 1 spent months will also receive two
Russian Guild of Realtors have elsewhere. complimentary overnight stays,
signed an agreement by means complete with breakfast.
of which estate agencies can Billpay ties with Hanseatic
start working with Sberbank to Bank and Visa for credit card …and Ritz-Carlton becomes
source mortgages by completing linked to loyalty program a points transfer partner for
a single form and generally Chase Ultimate Rewards
avoiding the bureaucracy of the In Germany, Billpay, an online
usual verification procedure payment service provider based On a related note, Chase has
which can take up to two in Berlin that works with online expanded its Ultimate Rewards
months. This deal is designed to merchants to facilitate transac- program to include a new points
improve interaction between tions and instalment payments, transfer partner, namely high-
Sberbank and estate agencies has launched a new co-branded end travel brand The Ritz-
across all 60 Russian regions. credit card in co-operation with Carlton Hotel Company. Under
Hanseatic Bank and Visa. The this new deal, cardholders are
————————————-- Billpay Visa card, which is being able to convert Ultimate Reward
issued by Hanseatic Bank, is points into Ritz-Carlton Re-
CO-BRANDED CARDS linked to a new loyalty program wards points at a ratio of 1:1,
that will enable customers to and with no restrictions on
Barclaycard unveils new collect bonus points for using transfer quantity. Ritz-Carlton
Black Visa card in partner- the card at a variety of online Rewards points can be earned
ship with international hotel retailers. and redeemed at Ritz-Carlton
group hotels and resorts, as well as at
Chase launches US co- 3,500 partner hotels around the
In the UK, Barclaycard has an- branded card product for world.
nounced the launch of the Pri- Fairmont Hotels and Re-
ority Club Rewards Black Visa sorts… Commerzbank and German
card in association with Inter- football federation launch co-
Continental Hotels Group In the US, Chase has been se- branded credit card
(IHG). The new card offers lected as the issuing partner for
members of the Priority Club the first ever credit card product In Germany, Commerzbank, a
Rewards loyalty scheme - which launched by Fairmont Hotels sponsor of the country's na-
www.finaccord.com
14

15. Global Affinity Finance Club
Affinity Banking
tional football federation, the INTERNATIONAL REMIT- with four financial institutions,
Deutscher Fußball-Bund (DFB), TANCES namely Citizens Bank, and
has launched a new co-branded MIDFLORIDA Credit Union,
MasterCard credit card with the Wells Fargo and HDFC Bank Right Choice Money Services
DFB as part of a renewed part- partner to create new US- (owned by Redstone Federal
nership. This agreement is part India remittance service Credit Union) and Veridian
of a wider sponsorship initiative Credit Union. The respective
whereby Commerzbank is also Non-resident Indians living in agreements will enable the insti-
advertising its bank accounts the US will soon be able to send tutions to offer Western Union's
and other financial services in money home via a new channel global money transfer and bill
association with the DFB. as a result of an initiative be- payment services to their cus-
tween Wells Fargo and HDFC tomers.
————————————-- Bank. International remittance is
a large and growing market and, ... and renews money transfer
CONSUMER FINANCE whereas HDFC Bank has tradi- contract with Spanish post
tionally been strong in remitting office
Cetelem offers point-of-sale funds from various Middle
finance for Bombardier Rec- Eastern countries to India, this Furthermore, in Spain, Western
reational Products new partnership for US-India Union and CORREOS, the
transfers is one that the two country's post office network,
In France, Bombardier Recrea- partners believe could be highly have signed a new agreement
tional Products (BRP), the pro- significant. lasting five years to continue
ducer of motorised recreational marketing the Western Union
vehicles such as the Ski-Doo, According to the World Bank, Money Transfer service and to
Lynx, Sea-Doo, Evinrude, John- remittance flows to developing introduce the Western Union
son, Rotax and Can-Am, has countries were an estimated Business Solutions service.
signed an agreement with USD 351 billion in 2011, up 8% Thanks to the new contract,
Cetelem whereby the consumer from the previous year. Wells CORREOS will expand the
finance subsidiary of BNP Fargo provides retail banking range of Western Union services
Paribas will be the finance pro- and other financial services via a that are available throughout its
vider for independent BRP deal- network of around 9,000 network of over 2,260 branch
ers in France. Dealers will be branches. The first transaction offices. The Western Union
able to offer customers the full under this new scheme will need Business Solutions service en-
range of Cetelem's financial to be conducted in person at a ables companies of all sizes to
products, such as loans and leas- Wells Fargo branch, but all sub- send and receive international
ing with the option to buy, plus sequent activity can take place payments.
related services such as insur- either online or via phone.
ance and payment via its Aurore ————————————--
card. Western Union teams up with
quartet of banking institu-
————————————-- tions in the US...
In the US, Western Union has
announced new agreements
www.finaccord.com
15

16. Global Affinity Finance Club
Affinity Banking
INTER-BANK CARD DIS- merchant licensing agreement payments in Iceland and means
TRIBUTION with Equity Bank in Africa that Chinese language interfaces
through which JCB cards will be will be added to around 90% of
JCB increases card circula- accepted from the start of De- ATMs in the country. More-
tion with China and Indone- cember 2012 at all of the bank's over, in a comparable arrange-
sia through new relation- merchant locations in Kenya, ment in Denmark, Danish card
ships... Rwanda, South Sudan, Tanzania service provider Nets has stated
and Uganda. that it will now accept UnionPay
Japanese payments company cards throughout that country.
JCB has signed new card issuing UnionPay secures card distri-
agreements with Bank Interna- bution links with two further ————————————--
sional Indonesia (BII) and with Korean card issuers...
Industrial and Commercial Bank MOBILE BANKING
of China (ICBC). BII, one of In South Korea, UnionPay has
the largest commercial banks in announced agreements with Monitise rolls out new mobile
Indonesia, will launch the BII- card-issuing firms KB Kookmin banking partnerships in In-
JCB Platinum credit card, the Card and Korea Shinhan Card donesia and the UK
first JCB platinum card in Indo- Company, whereby the firms
nesia. The card will target a will issue UnionPay payment Mobile banking and payment
range of affluent customers in cards throughout the country. specialist Monitise has an-
the country, including Indone- This will increase the Chinese nounced new partnerships with
sians who frequently travel to payment card firm's distribution three organisations namely, As-
Japan and Japanese individuals in South Korea, where cards tra Graphia Group, HSBC and
living in Indonesia. Meanwhile, carrying its name are issued al- The Co-operative Bank.
ICBC's flagship credit card will ready by Korea BC Card Com-
now be issued carrying the JCB pany and Lotte Card Company, The relationship with Astra
logo, providing customers with with approximately 2.45 million Graphia Group in Indonesia
travel-related services such as UnionPay cards in circulation in takes the form of a joint ven-
the JCB Plaza and JCB Plaza total. UnionPay credit and debit ture. Named AGIT Monitise
Lounge in addition to ICBC's cards are increasingly accepted Indonesia, it will combine the
own loyalty program and other across Korea and can also be expertise of Monitise Asia Pa-
functions and services. Custom- used for cash access at roughly cific, itself a joint venture be-
ers may also choose to be billed half the ATMs in the country. tween Monitise and the First
for their international spending Eastern Investment Group, and
on the card in US dollars or in ... and ties with merchant ac- Astra Graphia Information
Japanese yen. ICBC claims to quirers in Denmark and Ice- Technology (AGIT). Thus far,
have issued more credit cards land AGIT Monitise Indonesia has
than any other bank in China. completed the installation of a
In a separate deal, Icelandic data centre in Jakarta to support
... and signs up to merchant bank card specialist Borgun has mobile banking, payments and
licensing agreement with Af- agreed to start accepting Union- commerce, which will allow
rican bank Pay cards across all of its mer- banks, mobile operators, retail-
chant outlets. This covers virtu- ers and other service providers
Elsewhere, JCB has signed a ally all retailers accepting card to connect via a shared and se-
www.finaccord.com
16

17. Global Affinity Finance Club
Affinity Banking
cure network, enabling the de- further devices from a variety of BOKU secures payments
livery of mobile services to both manufacturers planned for partnerships with Deutsche
banked and unbanked custom- launch throughout the year. Telekom and Sprint
ers. The first service using the
new platform will be launched In addition, Barclaycard is intro- US-based mobile payments spe-
in conjunction with Permata- ducing a new functionality, cialist BOKU has announced
Bank, one of the top ten banks which will allow credit or debit deals with both Deutsche Tele-
in Indonesia. card customers at any UK bank kom in Germany and Sprint in
to connect to the Quick Tap the US. The partnership will
Meanwhile, in the UK, both service. This will be the first allow the customers of T-
HSBC and The Co-operative time that Quick Tap will be Mobile and Sprint to make pay-
Bank are introducing iPhone available to those without cards ments using only their mobile
banking apps designed by Moni- issued by Barclays or Barclay- telephone numbers for digital
tise, with apps for other smart- card. Specifically, customers will goods and services, including
phone platforms including An- be able to transfer up to a limit games, music and Facebook
droid and BlackBerry expected of GBP 150 directly from their credits. Specifically, customers
to follow. The Co-operative account onto a Quick Tap app. will enter their mobile number
Bank will also offer its custom- to pay and will confirm their
ers without smartphones an Once loaded with money, the payment by responding to an
alert and enquiry service based mobile is then ready to make SMS message; the charge will
on text messaging, also designed single payments of up to GBP then appear on their wireless
by Monitise. 20 by simply being tapped on a bill. The partnerships come hard
contactless terminal. The Bar- on the heels of BOKU's an-
————————————-- claycard payment app, which nouncement that it has received
sits on the home screen of all a USD 35 million strategic in-
MOBILE PAYMENTS handsets compatible with Quick vestment from multiple sources,
Tap, contains information such including private equity firm
Barclaycard and Orange seek as electronic statements detail- NEA, Telefónica and other in-
to expand usage of contact- ing Quick Tap purchases so that vestors, to develop its mobile
less payment service customers can keep an eye on payments and billing platform as
their spending and manage fi- well as to fund future interna-
In the UK, Barclaycard and Or- nances easily while on the move. tional expansion.
ange have announced that their
Quick Tap contactless mobile By the end of 2012 it is pre- PayPal and Softbank estab-
payment service will shortly be dicted that there will be over lish Japanese digital pay-
available on selected handsets 130,000 merchant outlets across ments joint venture
which use the Android operat- the UK where customers can
ing system, as well as to credit make contactless payments, in- PayPal and Softbank have an-
and debit card customers of all cluding major retail chains with nounced a planned joint venture
UK banks. Orange expects to a high footfall such as Boots, Co company, to be known as Pay-
announce soon the first handset -Op, Tesco and Waitrose plus Pal Japan. The new venture
compatible with Quick Tap leading food service chains like combines PayPal's experience in
handsets that uses the Android EAT, McDonalds, Prêt a Man- digital payment processing with
operating system with a series of ger and Subway. Softbank's base of 29 million
www.finaccord.com
17

18. Global Affinity Finance Club
Affinity Banking
mobile subscribers. PayPal and mobile payments in a joint ef- and the development of related
Softbank plan to invest equally fort to promote the industry as a mobile payment services.
in the joint venture, with each whole. Moreover, China Mobile
party putting forward JPY 1 bil- and UnionPay also hope to de- Mobile commerce is a key focus
lion (around USD 12.5 million) velop a SIM-based product area of Telefónica’s new Digital
each. The new venture will al- which would enable the users of unit which has been formed to
low Softbank customers to virtually any phone to make mo- drive business opportunities
make payments via PayPal ac- bile payments including contact- within the digital space. In
counts using their mobile less payments in retail stores and Europe, Telefónica has already
phones at retailers and other vending machines. As part of launched a mobile wallet service
institutions using the PayPal this agreement, the two compa- in the UK and is working to
Here network. Hence, Japan will nies intend to launch multiple launch mobile wallet products
become the fifth nation to offer joint pilot projects in select cit- across its other operating busi-
PayPal Here, following Austra- ies throughout China. nesses.
lia, Canada, Hong Kong and the
US. Visa Europe secures mobile Telefónica has stated that it is
payments partnership with committed to striking wide-
Small businesses using PayPal Telefónica ranging, open partnerships with
Here will also be able to accept a range of companies in order to
credit card payments via a small Visa Europe and Telefónica develop the best possible mobile
card reader linked to a smart- Digital have revealed the crea- commerce services. In addition
phone, allowing businesses to tion of a wide-ranging strategic to Visa Europe, it has also
accept credit cards without a partnership to drive new busi- formed partnerships with Gie-
separate merchant agreement. ness opportunities within mo- secke & Devrient and Sybase.
There are no account fees paid bile commerce across Tele-
by merchants, with a flat 5% fónica’s operations in Europe. VocaLink ties with Clairmail
charge per transaction; the card The agreement will see both for advanced mobile banking
reader itself costs approximately companies co-invest in the de- and payments
JPY 1,200. The apps will be velopment of innovative prod-
available initially for iPhone, ucts and services in areas such In the UK, payments company
with Android apps available as mobile wallets, contactless VocaLink has announced a part-
shortly thereafter. payments (NFC), acquirer ser- nership with mobile banking
vices for mobile point of sale, and payments firm Clairmail,
UnionPay kicks off mobile and merchant offers. now part of Monitise, to offer
payments collaboration with integrated mobile banking and
China Mobile The agreement builds on the payments solutions. The part-
existing relationship of Tele- nership will enable banks to use
China Mobile and UnionPay fónica and Visa Europe in mar- Clairmail's Smart Client mobile
have concluded an agreement to kets such as the UK and Ireland, delivery system coupled with
co-operate in the field of mobile formalising it at a Europe-wide VocaLink's real-time capabili-
payments in areas including re- level and establishing Visa ties, allowing for faster payment
search and development, com- Europe as Telefónica’s pre- processing and delivery.
mon technical standards and ferred partner for the issuance
marketing and advertising of of co-branded payment cards
www.finaccord.com
18

19. Global Affinity Finance Club
Affinity Banking
Western Union links with pendent institutions. Specifi- platform. Eventually, the parties
MTN for international mo- cally, the company has already plan to extend this area of co-
bile payments service... launched mobile money transfer operation to other countries and
services in nine countries: Bang- regions.
In Uganda, Western Union has ladesh, Burkina Faso, Canada,
entered into a partnership with Kenya, Madagascar, Malaysia, Western Union launches WU
MTN, a mobile operator brand, the Philippines, Tanzania and Pay online payment platform
for the launch of a mobile the US.
money transfer service that al- In the US, Western Union has
lows the operator's customers to Indeed, Western Union also an- announced that it will launch
send and receive money on a nounced recently the launch of WU Pay, a new electronic pay-
cross-border basis using just new mobile payment services in ments platform that aims to im-
their mobile phones for the first Bangladesh with Banglalink, in prove both general customer
time. This allows more than 2 Burkina Faso with Inova, and in experience and safety for indi-
million customers in Uganda Madagascar with Telma. These viduals seeking to make online
using Mobile Money, MTN’s three launches follow four new payments or to transfer money.
mobile money transfer service, strategic alliances previously an- The new WU Pay platform al-
to add funds to their accounts nounced at the Mobile World lows online shoppers in the US
sent through Western Union’s Congress in Barcelona. to pay for purchases from their
system. The new service also existing bank accounts or in
enables MTN's customers to ————————————-- cash at Western Union agent
send money on an international locations. WU Pay is based on
basis directly from their Mobile ONLINE PAYMENTS the eBillme platform, which
Money accounts either for cash Western Union acquired in Oc-
payout at Western Union agent Microsoft and UnionPay tie tober 2011. The service is avail-
locations around the world or to for online payments in China able as a payment option
subscribers of other selected through hundreds of online
mobile operators with which Microsoft and UnionPay have merchant sites including
Western Union has agreements. announced the signing of a Buy.com, Kmart and Sears, and
memorandum of understanding the payment option can also be
... adding to a growing roster regarding online payments and used to purchase over 60 lead-
of mobile money transfer other opportunities of mutual ing virtual gift cards including
agreements around the world interest in China. The two com- those of Amazon, American
panies have agreed to co- Airlines, Dell and Home Depot.
Generally, Western Union has operate in the field of online
revealed that it now has mobile payments with the expectation ————————————--
money transfer agreements with of delivering increased conven-
a total of 26 mobile wallet pro- ience for UnionPay cardholders RETAILER BANKING
viders in 22 countries. 20 of when purchasing Microsoft
these agreements are with mo- products and services. This ser- HSBC and M&S to offer full
bile operators, collectively repre- vice will first be enabled on Mi- retail banking services and
senting over 285 million sub- crosoft's Chinese trading plat- very long opening hours
scribers, while the remaining six form, with payments organised
are with banks and other inde- via UnionPay's online payment Having worked closely together
www.finaccord.com
19

20. Global Affinity Finance Club
Affinity Banking
since 2004 when HSBC ac- and is the exclusive provider of press as it does not otherwise
quired the M&S Money range of such units for 7-Eleven, which market charge of credit cards to
payment card and loan products operates or licenses around this constituency. Students with
from UK retail group Marks & 9,200 retail outlets across North the personalised, reloadable card
Spencer, the duo now plans to America. The new deal effec- benefit from purchase protec-
launch in-store bank branches tively adds around 500 fee-free tion insurance, road assistance
and to offer a far wider range of ATMs to Scotiabank's existing and travel assistance plus vari-
retail banking services to both network, which represents an ous entertainment-related cus-
the existing book of around 3 increase of more than 15%. tomer offers and discounts at
million customers and new cli- selected merchants.
ents. The first M&S Bank is ex- ————————————--
pected to open within London's Secondly, it has launched a com-
flagship Marble Arch store in RETAILER CARDS parable pair of prepaid cards in
the summer of 2012, with a fur- association with Office Depot, a
ther 50 in-store locations American Express introduces specialised retailer of office
planned to open over the fol- prepaid cards with two major products with more than 1,100
lowing two years. M&S Bank US retail chains... outlets in the US. Like the Bar-
will initially offer current ac- nes & Noble products, the tem-
counts and then, at a later date, In the US, American Express porary, one-time load card can
mortgages. Aside from the has announced the launch of be used anywhere in the US
strength of the M&S brand, the three important new initiatives where American Express is ac-
main selling point of this new in the market for co-branded cepted while the personalised,
venture is that each in-store prepaid cards. reloadable product has interna-
branch will precisely mirror the tional functionality with mer-
opening hours of that store, Firstly, in association with book chants accepting American Ex-
seven days a week, creating a retailer chain Barnes & Noble, it press.
very high degree of convenience has introduced the Campus Edi-
for the customer. tion prepaid card in both tem- ... and through Zynga Serve
porary, one-time load and per- Rewards with a provider of
Scotiabank expands ATM sonalised, reloadable versions social games services
network through deal with 7- available in more than 500 col-
Eleven and Cardtronics lege bookstores which provides Finally, a prepaid card is also a
college students with a spending part of the proposition that
Scotiabank has disclosed that and budgeting tool that can be American Express has devel-
customers in various parts of used anywhere that American oped with Zynga, a provider of
Canada (namely Alberta, British Express cards are accepted. The social games services, the main-
Columbia, Manitoba, Ontario personalised, reloadable card stay of which is Zynga Serve
and Saskatchewan) will soon be can be charged online through a Rewards, a loyalty program tied
able to use ATMs located within bank account, through cash to the Serve digital wallet that
7-Eleven convenience stores loading via MoneyPak or at the offers in-game incentives for
without incurring charges. Card- register at participating Barnes everyday expenditure. Specifi-
tronics owns and operates more & Noble campus bookstores. cally, it allows players of Zynga's
than 50,000 ATMs in North Students constitute a new cus- FarmVille game to earn virtual
America and other locations, tomer target for American Ex- game cash by learning about
www.finaccord.com
20

21. Global Affinity Finance Club
Affinity Banking
Serve and signing up to receive GE Capital Retail Bank ex- CareONE credit card program,
the benefits of this digital wallet. tends two tyre finance part- which began in 1997, provides
Individuals applying successfully nerships customers with payment solu-
to join the Zynga Serve Rewards tions at any of more than 800
program receive a Zynga Serve In the US, GE Capital Retail physical outlets across 23 states
co-branded prepaid card by Bank and the Tire Industry As- plus online via the
post. In the second half of 2012, sociation (TIA) have unveiled a www.discountire.com or
the initiative will be broadened multi-year renewal of their pri- www.tires.com websites.
in a number of respects includ- vate label credit card program,
ing the extension of the Zynga enabling association members to Scotiabank and SportChek
Serve Rewards program to addi- offer finance to customers announce a new range of
tional games such as CastleVille through the CarCareONE card NHL credit card products
and CityVille. network. First introduced in
1984, the TIA CarCareONE In Canada, Scotiabank has
Chase extends its card issu- program provides customers launched a new co-branded Sco-
ing relationship with Amazon with convenient payment op- tiaHockey NHL Visa program
in North America tions for tyre replacement and in conjunction with sporting
repair purchases at TIA member goods retailer SportChek. The
Chase Card Services Canada and dealer locations. Cardholders credit cards can be branded ei-
online retailer Amazon have can qualify for rebates, promo- ther with the official logo of any
launched a co-branded Visa tional financing terms, e-billing NHL (National Hockey League)
credit card product, which will and e-payments, and other op- team, or with the NHL shield.
also feature Visa payWave con- tions and the CarCareONE card Expenditure on the new cards
tactless technology. This is the is accepted nationwide by over generates SportChek reward
second initiative involving 6,000 participating merchants points, which can be used for
Chase and Amazon in North and can also be used at Exxon both online and in-store pur-
America, as the companies have and Mobil gasoline locations. chases. For a limited time, addi-
also been offering a similar The TIA is an association repre- tional benefits for new card-
product to US consumers since senting all segments of the tyre holders include the ability to
2002. Canadians using the new industry, including those that earn points at five times the
cards to make purchases from manufacture, repair, recycle, sell, standard rate when making pur-
the www.amazon.ca website will service or use new or retreaded chases at SportChek, and receiv-
earn reward points at double the tyres, as well as suppliers or in- ing a free skate sharpening with
standard rate that applies when dividuals who furnish equip- any in-store purchase. Sport-
the card is used at other retail- ment, material or services to the Chek is part of FGL Sports
ers. Furthermore, for larger industry. which, via its numerous brands,
qualifying purchases from Ama- is one of Canada's largest retail-
zon, cardholders will gain access In a related development, GE ers of sporting goods. Note also
to additional six-month and 12- Capital Retail Bank has also dis- that Scotiabank is the official
month finance options. closed a multi-year renewal to bank of both the NHL and sev-
continue providing finance for eral individual teams.
customers of Discount Tire, a
independent tyre retailer in the
US. The Discount Tire Car-
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21

22. Global Affinity Finance Club
Affinity Banking
UnionPay enters into strate- tailer in the UK, DFS, has an-
gic agreement with Shell in nounced that it is opening a
China store in Dublin as its first strate-
gic move to enter the European
In China, payment card com- market. Moreover, it has chosen
pany UnionPay and Shell have LaSer UK to provide retail fi-
signed a strategic agreement nance for this store, as the UK-
with plans to co-operate gener- based finance provider that it
ally in the areas of payment ac- believes to be best placed to
ceptance, customer loyalty pro- support multi-channel, cross-
grams and card issuance. Shell border European transactions.
maintains 700 petrol stations in
China and these have begun ac- ————————————--
cepting UnionPay cards.
————————————--
RETAILER FINANCE
Ikano and Credit Europe
Bank tie up for Russian joint
venture
Credit Europe Bank and Ikano
Group have started the registra-
tion process for the creation of
a joint venture bank in Russia. It
is intended that the new bank
will offer financial services to
Ikano’s customers in Russia.
Netherlands-based Credit
Europe Bank has been active in
Russia since 1997 and currently
serves more than 3 million Rus-
sian customers through more
than 120 branches and 8,500
sales points while Ikano has
been active in Russia since 2006.
DFS selects LaSer UK for re-
tailer finance venture in Ire-
land
In Ireland, the largest sofa re-
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22