Global Affinity Finance Club Winter 2014

AFFINITY INSURANCE
BANCASSURANCE
AFFINITY BANKING
Global Affinity
Finance Club
Finaccord’s newsletter about affinity financial services worldwide
Welcome back to your Club!
A trio of significant bancassurance deals focused mainly on the Asia-
Pacific region catch the eye this quarter with AIA Group, MetLife
and Prudential all taking steps to strengthen relationships with key
banking partners.
While Prudential has entered into a 15-year partnership with Stan-
dard Chartered that paves the way for exclusive distribution of life
insurance products in nine out of 11 countries in scope, AIA Group
and MetLife have both successfully cemented their relationships
with Citigroup. In the former case, AIA Group has also secured a 15
-year agreement focused on life insurance in 11 Asia-Pacific coun-
tries while MetLife’s deal is for creditor insurance in a total of 15
markets around the world including Australia, Indonesia, Malaysia,
the Philippines and Thailand.
Other especially noteworthy news items from the most recent quar-
ter include: the acquisition of Iké Asistencia by Assurant; the renewal
of the motor insurance joint venture of ADAC and Zurich in Ger-
many; The Warranty Group’s new joint venture with TVS Automo-
tive Solutions; MetLife’s proposed bancassurance joint venture with
AMMB Holdings in Malaysia; the launch of Wesbank’s automotive
finance joint venture with VW in South Africa; the forthcoming IPO
of GE’s North American retailer finance business; and the usual
flurry of initiatives in mobile payments from the likes of MasterCard,
Visa Europe and Western Union.
With best regards,
Alan Leach
Director
aleach@finaccord.com
For our published reports,
news and more please visit
www.finaccord.com
2014WINTER

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www.finaccord.com
Affinity Insurance News 4
ACCIDENT INSURANCE 4
AIG France enhances accident cover
for the Fédération Française de Bas-
ketBall 4
ASSISTANCE 4
Assurant expands in Latin America
through investment in Iké Asistencia 4
HomeServe announces several new
distribution partnerships in the US... 4
...including an expansion of its rela-
tionship with Florida Public Utilities 4
Solid Försäkringar and Fiat initiate
partnership for road assistance 5
COMMERCIAL INSURANCE 5
Beazley launches event cancellation
scheme with UK insurance broker
association 5
HEALTH INSURANCE 5
Indian health insurance joint venture
commences operations 5
HDI and DKV extend their distribu-
tion partnership in Germany 5
LIFE INSURANCE 6
Discovery and AIA Group roll out
wellness-based life insurance joint
venture in Australia 6
Aviva secures Indonesian joint ven-
ture with Astra International 6
MOTOR INSURANCE 6
ADAC and Zurich renew German
motor insurance joint venture 6
Direct Line begins co-operating with
Honda for branded insurance 7
Ageas and Vauxhall extend partner-
ship to van insurance 7
NICHE INSURANCE 7
Allianz Global Assistance gains missed
event insurance deal with Tickets.com
7
PET INSURANCE 7
Sterling and BMG Insurance Brokers
tie for new pet insurance offering 7
PRODUCT INSURANCE / WAR-
RANTIES 7
CarGarantie supports Mercedes-Benz
used van extended warranties in Ger-
many 7
Jaguar Land Rover and Real Garant
enhance partnership in Belgium and
Germany 7
Renault selects MAPFRE WAR-
RANTY for extended warranty pro-
gram in Panama 8
The Warranty Group signs multi-year
agreements with North American
partners... 8
... and establishes joint venture with
TVS Automobile Solutions 8
Wertgarantie expands European foot-
print through SFG acquisition 8
Brightstar expands through acquisition
of Softbank subsidiary 8
CNA Warranty and EPIC introduce
new hearing aid protection plans 9
TRAVEL INSURANCE 9
Allianz secures travel insurance ties
with STA Travel and Virgin Group
companies... 9
... and also with UK-based media
group 9
Airtel Money launches travel insurance
with MAPFRE Assistance 9
HanseMerkur extends partnership
agreement with TVG Touristik... 9
... and secures new deal for online
sales with Germanwings 10
GENERAL 10
Junction and Post Office prolong in-
surance partnership through to 2019
10
Bancassurance 10
COMMERCIAL INSURANCE 10
Euler Hermes launches trade credit
insurance for HSBC customers in Ma-
laysia and the US 10
CREDITOR INSURANCE 11
MetLife and Citigroup agree to col-
laborate for creditor insurance
through to 2025 11
LIFE INSURANCE 11
AIA Group and Citibank enter into
exclusive pan-Asian bancassurance
deal... 11
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... while Prudential and Standard
Chartered extend existing partnership
11
Manulife commences sales of annui-
ties through Japanese bank 12
MOTOR INSURANCE 12
Credibom introduces motor insurance
in partnership with BES Seguros 12
GENERAL 12
MetLife acquires equity stakes in Ma-
laysian bancassurance companies 12
Spanish bancassurance joint venture
introduces first non-life insurance
policies 13
MAPFRE consolidates Spanish ban-
cassurance partnership with Bankia 13
AXA and BNP Paribas agree to ter-
minate their shareholders’ agreement
13
Affinity Banking News 13
AFFINITY BANKING 13
NatWest and RBS extend banking
services available at Post Office out-
lets 13
BNP Paribas ties with Paris Bar for
affinity banking deal for young law-
yers 13
AUTOMOTIVE FINANCE 14
Volkswagen Financial Services ac-
quires MAN Finance International...
14
... and launches a joint venture with
WesBank in South Africa 14
CO-BRANDED CARDS 14
MasterCard introduces virtual / tradi-
tional prepaid card with Orange in
Spain 14
CIBC and Tim Hortons unveil new
co-branded loyalty rewards card 14
CONSUMER FINANCE 14
Compass expands distribution net-
work through MPS consumer finance
deal 14
MOBILE / ONLINE PAYMENTS
15
MasterCard ties with Monitise to ac-
celerate mobile payment solutions
worldwide... 15
... and creates HomeSend joint ven-
ture with eServGlobal and BICS... 15
... with these initiatives supplemented
by others in Germany, Lebanon and
the UK 15
Visa Europe rolls out mobile contact-
less payments with Orange in two
French cities... 16
... and collaborates with Caixabank
plus Orange, Telefόnica and Voda-
fone in Spain 16
Visa Europe ties up new partnerships
with 15 IPSPs for V.me by Visa ser-
vice 17
Alpha Bank links with First Data,
Visa Europe and Vodafone for con-
tactless payment pilot 17
Western Union links with Paga for
Nigerian mobile money transfer ser-
vice 17
Bradesco and Claro roll out 'My
Money' as mobile payment account 17
Toyota Financial Services signs up to
Barclays' Pingit for mobile payments
18
Sky chooses Wirecard to process pay-
ments for new online media initiative
18
PAYMENT CARD ACCEPTANCE
AND ISSUANCE 18
Ecobank customers across 28 African
countries gain access to MasterCard
products 18
JCB expands presence in south-east
Asian countries... 18
... with UnionPay following suit in the
same region plus Africa and the Mid-
dle East 19
Société Générale signs agreement
with Discover Financial Services 19
RETAILER CARDS 19
Citibank rolls out co-branded retailer
card with Czech online shopping mall
19
GE Capital Retail Bank extends credit
card program with furniture chain...
19
... and prepares for IPO and re-
branding as Synchrony Financial 20
GENERAL 20
American Express and Universal Stu-
dios expand marketing relationship 20

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Affinity Insurance News
ACCIDENT INSURANCE
AIG France enhances acci-
dent cover for the Fédération
Française de BasketBall
In France, AIG has disclosed
the renewal of its partnership
with the Fédération Française de
BasketBall (FFBB) for four
more seasons. Members of the
FFBB can benefit from addi-
tional covers designed to meet
the specific needs of basketball
players such as osteopathy treat-
ment, higher payments for seri-
ous injuries and assistance for
injuries sustained outside the
country. The FFBB has 515,000
members across 4,700 clubs,
which means that basketball is
the second most popular team
sport in France. Moreover, AIG
states that an average of around
2,000 claims is made each year,
highlighting the need for tai-
lored insurance of this type.
————————————--
ASSISTANCE
Assurant expands in Latin
America through investment
in Iké Asistencia
Speciality insurance group As-
surant has reached an agreement
to make an equity investment of
USD 115 million in Iké Asisten-
cia, an assistance operator active
in Mexico and other countries in
Latin America. Following the
completion of the first phase of
the transaction, which involved
Iké Asistencia’s Mexican busi-
ness, the second phase, relating
to the firm's other Latin Ameri-
can operations, was expected to
close by the end of the first
quarter of 2014.
Based in Mexico City, Iké Asis-
tencia is an important provider
of home, road and travel assis-
tance in several Latin American
countries, and is also involved in
providing insurance for mobile
devices and other protection
products, with the majority of
its services offered through
banks, retailers, car manufactur-
ers and telecoms providers. Iké
Asistencia will continue to oper-
ate independently but will col-
laborate with Assurant Solutions
to offer clients a broader range
of products and services.
Under the terms of the agree-
ment, Assurant has the option
of acquiring the remaining inter-
est in Iké Asistencia over time.
HomeServe announces sev-
eral new distribution partner-
ships in the US...
In the US, home emergency as-
sistance provider HomeServe
has signed distribution partner-
ships with four water utility pro-
viders – specifically Apple Val-
ley Ranchos Water Company in
California, Birmingham Water
Works in Alabama, Great Oaks
Water Company in San Jose,
and Park Water Company in
Los Angeles – plus one energy
utility provider, namely Florida
Public Utilities. The agreement
with Park Water (and its subsidi-
ary Apple Valley) will allow
HomeServe to market its op-
tional water supply pipe, sewer-
age pipe, interior plumbing and
drainage repair service to
around 90,000 customers be-
longing to these two providers
combined. Similar arrangements
with Birmingham Water Works
and Great Oaks will see the
same types of service offered to
190,000 and 20,000 homeown-
ers respectively.
...including an expansion of
its relationship with Florida
Public Utilities
Meanwhile, HomeServe's new
arrangement with Florida Public
Utilities (which is a subsidiary of
Chesapeake Utilities) relates
principally to the optional provi-
sion of repair services for exte-
rior gas supply pipes plus the
internal gas piping running from
the meter to each appliance. Un-
der the terms of the deal, these
gas-related service plans will be
offered to 80,000 natural gas
customers in Southern and Cen-
tral Florida, although those
same customers will also be able
to take advantage of Home-
Serve's other policies. Note also
that Florida Public Utilities and
HomeServe have previously col-
laborated in a similar fashion,
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notably by offering an electrical
surge protection program to
customers in 2013. In total,
HomeServe reports that it has a
portfolio of around 1.5 million
customers across North Amer-
ica.
Solid Försäkringar and Fiat
initiate partnership for road
assistance
In Scandinavia, Solid Försäkrin-
gar and Fiat have together
launched FGA Assistans, a road
assistance service included free
for customers buying Alfa Ro-
meo, Chrysler, Dodge, Fiat, Jeep
or Lancia vehicles. The assis-
tance is valid in Denmark, Nor-
way and Sweden, and gives cus-
tomers professional help if they
experience a problem with the
vehicle. FGA Assistans extends
to light commercial vehicles and
camper vans as well as passen-
ger cars.
————————————--
COMMERCIAL INSURANCE
Beazley launches event can-
cellation scheme with UK in-
surance broker association
In the UK, the British Insurance
Brokers' Association (BIBA) has
selected Beazley to provide an
event insurance scheme for its
members. The tailored scheme
will provide access for BIBA
members to Beazley's event can-
cellation cover for a wide range
of events both in the UK and
internationally. In addition to
protection against financial loss
arising from cancellation, dis-
ruption or re-scheduling of an
event resulting from circum-
stances beyond the control of
the organiser, Beazley is also
offering event equipment and
cash cover free of charge
through the scheme. Brokers
will also have access to other
event cancellation policy en-
hancements such as terrorism,
communicable disease and na-
tional mourning cover.
————————————--
HEALTH INSURANCE
Indian health insurance joint
venture commences opera-
tions
In India, commencement of
trading has been announced by
Cigna TTK Health Insurance a
joint venture between US-based
health insurance company Cigna
and Indian conglomerate TTK
Group. The company aims to
encourage customers to stay
healthy and live life to the fullest
by delivering products and ser-
vices that will educate and assist
them to lead healthier lifestyles.
In particular, given the contin-
ued rise in medical costs in In-
dia, coupled with a parallel in-
crease in lifestyle-related dis-
eases, the company believes that
there is an urgent need to stimu-
late health insurance penetration
in the country. As such, it states
that it is committed to providing
affordable and innovative health
insurance solutions to meet its
customers' daily health chal-
lenges without compromising
on quality customer service.
HDI and DKV extend their
distribution partnership in
Germany
In Germany, HDI Versicherun-
gen (owned by Talanx) and
DKV Deutsche Krankenversi-
cherung (belonging to ERGO)
have extended a long-standing
distribution partnership which
enables the former company to
offer health insurance products
underwritten by the latter. The
agreement had already been run-
ning for ten years and has been
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renewed for at least another five
years. While HDI is one of the
largest German insurers in both
life and non-life insurance it
does not underwrite health in-
surance. DKV, on the other
hand, is Germany’s second-
largest health insurer.
————————————--
LIFE INSURANCE
Discovery and AIA Group roll
out wellness-based life insur-
ance joint venture in Austra-
lia
Following on from the creation
of AIA Vitality as a strategic
joint venture to introduce a
wellness-based life insurance
model to the Asia-Pacific re-
gion, South Africa's Discovery
and the AIA Group have
launched operations on a na-
tionwide basis in Australia. This
launch to the wider Australian
market follows a reportedly suc-
cessful pilot phase where a lim-
ited number of financial advisers
had the opportunity to trial the
AIA Vitality program which was
first launched in Singapore in
2013.
AIA Vitality aims to combine
AIA’s brand, distribution prow-
ess and life insurance expertise
with Discovery’s proprietary
wellness-based experience.
Moreover, it offers protection
products that are designed to
deliver better health and lower
premium rates for AIA's cus-
tomers, and is tailoring the dy-
namic approach of linking well-
ness incentives to life and health
insurance, first pioneered by
Discovery in South Africa.
According to Discovery, the
rising incidence of chronic dis-
eases and the resultant increase
in healthcare costs and prema-
ture deaths is a global issue. It
sees these trends in South Af-
rica, the UK and the US which
means that Australia and the
broader Asia-Pacific region are
likely to be no different. First
launched in 1997, the company's
'Vitality' program currently has
more than 5 million customers
worldwide spanning South Af-
rica, UK and the USA, plus
China and Singapore.
Aviva secures Indonesian
joint venture with Astra Inter-
national
In Indonesia, Aviva and local
company Astra International,
the country's largest publicly-
listed company, have entered
into an agreement to form Astra
Aviva Life, a joint venture
owned in equal proportions to
sell and distribute life insurance
products. Astra Aviva Life will
be the preferred provider of a
range of life insurance products
to Astra and its subsidiaries and,
subject to regulatory approvals,
the company will enter into dis-
tribution arrangements with a
number of the Astra group
companies, including Permata-
Bank. The joint venture will also
offer life insurance to the wider
consumer market through a va-
riety of digital, agency and part-
ner channels.
————————————--
MOTOR INSURANCE
ADAC and Zurich renew Ger-
man motor insurance joint
venture
In Germany, ADAC, the coun-
try's largest automotive associa-
tion, and Zurich have renewed
the agreement underpinning
their joint venture entity ADAC
Autoversicherung which was set
up originally in 2007. In particu-
lar, the two organisations have
agreed to extend their partner-
ship for jointly running the mo-
tor insurance underwriter for
another five years having been
encouraged by growth in the
number of policies in force
from about 300,000 to 630,000
over the course of six years. The
partners also disclosed that
gross premiums written by
ADAC Autoversicherung
amounted to EUR 223 million
in 2013. 51% of the equity of
the Munich-based joint venture
is owned by Zurich with the
remaining shares held by ADAC
-Schutzbrief Versicherung,
ADAC’s own insurance com-
pany.
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Direct Line begins co-
operating with Honda for
branded insurance
Also in Germany, Direct Line
Versicherung, a subsidiary of
the UK's Direct Line Group,
has commenced a partnership
with Honda Insurance Services
to underwrite Honda-branded
car and motor cycle insurance
policies. Beginning in January
2014, the deal means that
Honda dealers in Germany are
able to distribute Direct Line's
policies to their customers.
Ageas and Vauxhall extend
partnership to van insurance
Strengthening a relationship that
has already spanned five years,
Ageas and UK automotive
manufacturer brand Vauxhall
have broadened their partner-
ship to encompass the provision
of van insurance in the UK, as
well as personal motor insur-
ance. This means that Vauxhall
can now offer insurance to cus-
tomers buying vans via its dealer
network for the first time. Spe-
cifically, Vauxhall will be offer-
ing a complimentary five-day
'free-to-go' policy for vans pur-
chased directly from Vauxhall
dealers, as well as the option to
purchase a full annual insurance
policy. A team within Ageas In-
surance Solutions, a division
based in Stoke-on-Trent, ser-
vices the Vauxhall Insurance
business, managing all customer
sales and service administration.
————————————--
NICHE INSURANCE
Allianz Global Assistance
gains missed event insurance
deal with Tickets.com
In the UK, Tickets.com – which
provides ticketing and market-
ing solutions to entertainment,
sports and visitor attractions
worldwide – has partnered with
Allianz Global Assistance in or-
der to provide all of its UK ven-
ues with the option of offering
missed event insurance. Tick-
ets.com works with more than
300 venues in the UK. By
means of this new deal, custom-
ers of those venues that opt in
to the scheme will be able to
select missed event and ticket
insurance at the online check-
out, meaning that they would
then be able to obtain a refund
if they could not attend the
event for a number of reasons,
including personal illness or se-
vere weather disruption.
————————————--
PET INSURANCE
Sterling and BMG Insurance
Brokers tie for new pet insur-
ance offering
In the UK, Sterling Insurance
and BMG Insurance Brokers
have announced the formation
of a new partnership which will
provide an independent facility
and white-labelled, end-to-end
solution for providers of pet
insurance in the UK. The new
venture, known as Sterling Pet
Solutions, is intended to inject
new capacity and increased
competition into the pet insur-
ance market. Sterling's expertise
in administration will see it pro-
viding sales fulfilment, website
design and claims handling ser-
vices, whilst underwriting capac-
ity will be sourced by BMG.
————————————--
PRODUCT INSURANCE /
WARRANTIES
CarGarantie supports Mer-
cedes-Benz used van ex-
tended warranties in Ger-
many
In Germany, CarGarantie has
been the partner for passenger
car and van warranties offered
by Daimler group (the owner of
Mercedes-Benz) since 2005.
Moreover, it has now an-
nounced the introduction of a
new extended warranty for used
Mercedes-Benz vans, thereby
filling a gap in its product range
not previously covered.
Jaguar Land Rover and Real
Garant enhance partnership
in Belgium and Germany
Real Garant, a specialised ex-
tended warranty provider owned
by Zurich, has improved the
warranty that it offers to Jaguar
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Land Rover customers in Bel-
gium and Germany, having al-
ready worked with the automo-
tive group for several years. Spe-
cifically, it has announced that
the extended warranty that it
offers on new Jaguar Land
Rover cars is now almost as
comprehensive as the factory
warranty, and that there is also
now a comprehensive warranty
for buyers of nearly-new cars.
Renault selects MAPFRE
WARRANTY for extended
warranty program in Panama
In Panama, MAPFRE WAR-
RANTY and Renault have en-
tered into an agreement by
means of which the automotive
manufacturer brand's customers
can purchase extended warran-
ties. In particular, the extended
warranty affords the same cov-
erage as the original manufac-
turer guarantee, prolonging it by
another two years from three
years to five. MAPFRE WAR-
RANTY has been present in
this sector in Panama since 2013
and considers itself to be the
market leader in the country.
The Warranty Group signs
multi-year agreements with
North American partners...
In North America, The War-
ranty Group has announced
multi-year agreements, including
one agreement extension, with
two key partners.
Specifically, it has negotiated
terms with electronics retailer
Micro Center to provide sup-
port for its US-based protection
plan program. The Warranty
Group will provide underwriting
services through its wholly-
owned subsidiary Virginia
Surety Company, as well as
regulatory, marketing and ad-
ministrative services.
In addition, The Warranty
Group and Safe-Guard Prod-
ucts, a provider of finance and
insurance products to the auto-
motive industry, have an-
nounced the extension of an
existing multi-year agreement.
In fact, the Warranty Group has
been providing underwriting
and actuarial services to Safe-
Guard Products in Canada and
the US for nearly ten years.
... and establishes joint ven-
ture with TVS Automobile
Solutions
Meanwhile, The Warranty
Group has also announced the
formation of a joint venture
with TVS Automobile Solu-
tions. This joint venture will of-
fer extended warranties and re-
lated services throughout Bang-
ladesh, India and Sri Lanka as
well as portions of the Middle
East. The new company will
serve manufacturers, distribu-
tors and retailers of both motor
vehicles and consumer elec-
tronic products, offering a range
of service contracts, extended
warranties, original warranties
and prepaid maintenance pro-
grams.
Wertgarantie expands Euro-
pean footprint through SFG
acquisition
German warranty specialist
Wertgarantie has announced the
acquisition of France-based
SFG (Société Française de Ga-
rantie) from the UK's Home-
Serve. The new addition to the
German group will expand to
France and Belgium a European
presence already established in
Austria, the Netherlands, Spain
and Switzerland, as well as in
Germany. SFG is a provider of
technical and repair services for
white, brown and grey goods,
including both manufacturer
and extended warranty cover-
age.
Brightstar expands through
acquisition of Softbank sub-
sidiary
US-based Brightstar has an-
nounced it will acquire the com-
merce and services division of
Japan's SoftBank BB, a distribu-
tor of information and commu-
nications technology hardware
and software products, plus mo-
bile accessories. Note that Soft-
Bank BB's parent company,
SoftBank, itself acquired a 57%
stake in Brightstar in late 2013.
After the acquisition, expected
to be finalised by April 2014, the
resulting company will be
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named SoftBank Commerce &
Services and will be a subsidiary
of Brightstar.
CNA Warranty and EPIC in-
troduce new hearing aid pro-
tection plans
In the US, CNA Warranty &
Alternative Risks, a division of
CNA, has formed an agreement
with Ear Professionals Interna-
tional Corporation (EPIC) to
offer hearing device protection
plans and inland marine insur-
ance policies to hearing aid us-
ers. The plans are designed to
protect the significant invest-
ments made by hearing aid users
and will offer benefits including
protection against mechanical
failure, accidental damage and
unintended loss.
——————————-——-
TRAVEL INSURANCE
Allianz secures travel insur-
ance ties with STA Travel
and Virgin Group compa-
nies...
In the UK, Allianz Global As-
sistance has secured travel insur-
ance distribution partnerships
with student travel specialist
STA Travel plus two Virgin
Group companies (namely Vir-
gin Holidays and its Florida-
specific subsidiary, Travel City
Direct).
The agreement with STA
Travel, which operates more
than 200 branches across 12
countries, was the result of a
global tender. STA Travel spe-
cialises in cheap flights, adven-
ture tours, gap-year travel and
career breaks, having mainly
catered for the student market
for nearly 35 years. The travel
insurance policies offered under
this new arrangement will be
designed specifically for younger
travellers and students.
Separately, the two Virgin
Group companies will act as
appointed representatives for
Allianz Global Assistance, and
will be able to sell travel policies
directly to customers in person,
by phone and online via white-
labelled websites.
... and also with UK-based
media group
Also in the UK, Allianz Global
Assistance has entered into a
relationship with media group H
Bauer Publishing to provide
travel insurance and assistance
policies under H Bauer's own
insurance brand, Dove Insur-
ance Services. Through this
deal, Allianz will be the sole pro-
vider of travel policies marketed
via Dove Insurance Services to
readers of H Bauer’s publica-
tions. Globally, H Bauer pub-
lishes more than 570 magazines
and operates around 50 radio
and television stations; its lead-
ing UK magazines include 'Take
a Break' and 'Bella', which lay
claim to a combined readership
of more than 3 million adults.
Airtel Money launches travel
insurance with MAPFRE As-
sistance
In Gabon, MAPFRE Assistance
has entered into an agreement
with Airtel Money, the financial
services arm of telecoms group
Bharti Airtel, to promote a
travel insurance product. Spe-
cifically, travel cover will be
made available via the mobile
phones of customers of Airtel,
including those that lack online
connectivity. In this latter case,
it will make use of the USSD
(Unstructured Supplementary
Service Data) data transmission
system. Across all of the coun-
tries in which it is active, Airtel
Money has built up a customer
base of around 28 million cli-
ents.
————————————-
HanseMerkur extends part-
nership agreement with TVG
Touristik...
In Germany, HanseMerkur and
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TVG Touristik, a specialised
travel company, have revealed
the extension of their distribu-
tion partnership for travel insur-
ance through to 2018. TVG
Touristik – which operates the
Reisebüro, Flugbörse and 5vor-
Flug travel portals – first en-
tered into a partnership with
HanseMerkur in 2008 and the
companies have agreed to ex-
tend the agreement for a further
five years.
... and secures new deal for
online sales with German-
wings
In the same country, German-
wings, a subsidiary of the Luf-
thansa airline, has entered into a
travel insurance partnership
agreement with HanseMerkur
focused on customers booking
flights via its website. The part-
nership will start later in 2014
and will run for a minimum pe-
riod of three years.
——————————-——-
GENERAL
Junction and Post Office pro-
long insurance partnership
through to 2019
In the UK, Junction, the part-
nerships business of BGL
Group, has unveiled a major
new agreement with the Post
Office to continue managing
motor and household insurance
for the brand until 2019. For the
first time, the new contract also
includes the administration and
distribution of commercial vehi-
cle insurance.
Junction initially began working
with the Post Office in 2004 and
states that it has helped drive
considerable growth for its part-
ner's insurance products. Most
recently, it supported the Post
Office in the delivery of one of
the industry's fastest in-branch,
quote-and-buy systems for
household insurance, which has
reportedly more than doubled
sales in the face-to-face channel
since launch.
The next phase of the partner-
ship will see Junction and the
Post Office launching new ini-
tiatives and further developing
their 'guaranteed-to-beat' mar-
keting strategy. In addition, the
two businesses will work to-
gether to launch a major new
branch engagement plan to help
maximise direct sales and re-
ward loyal Post Office custom-
ers.
——————————-——-
Bancassurance
COMMERCIAL INSURANCE
Euler Hermes launches trade
credit insurance for HSBC
customers in Malaysia and
the US
Euler Hermes has revealed that
it will become the exclusive sup-
plier of trade credit insurance
products to HSBC's commercial
banking customers in Malaysia.
This partnership fits within the
global distribution agreement
signed by the two parties in
2013. In particular, HSBC cus-
tomers trading on ‘open ac-
count’ will enjoy favourable ac-
cess to the trade credit solutions
of Euler Hermes. Policies will
be issued by local partner Al-
lianz Malaysia, a sister company
to Euler Hermes within the Al-
lianz group although Euler Her-
mes itself will provide reinsur-
ance plus credit assessment and
monitoring services.
Meanwhile, as a result of the
same distribution agreement,
Euler Hermes has also formal-
ised a partnership to provide
direct access to trade credit in-
surance for HSBC's commercial
banking customers in the US.
In fact, Euler Hermes and
Bancassurance

11
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HSBC have worked as distribu-
tion partners for trade credit
insurance in Brazil, Mexico and
the UAE since 2008. Further-
more, in 2013, the partnership
was also rolled out in France,
Hong Kong, Singapore, Turkey
and the UK.
——————————-——-
CREDITOR INSURANCE
MetLife and Citigroup agree
to collaborate for creditor in-
surance through to 2025
MetLife and Citigroup have an-
nounced that they have entered
into a ten-year distribution
agreement that will allow Met-
Life to provide creditor insur-
ance products to Citi's borrow-
ers in 15 markets through to
2025. This agreement expands
upon an existing distribution
agreement between MetLife and
Citi that will expire in 2015.
Building on the existing partner-
ship, the new arrangement
makes MetLife and its affiliates
the underwriter or reinsurer of
creditor insurance products
available to Citi's customers in
15 countries (13 on an exclusive
basis), namely Australia, Argen-
tina, Brazil, Bahrain, the Czech
Republic, Egypt, Greece, Indo-
nesia, Malaysia, the Philippines,
Poland, Russia, Spain, Thailand
and the UAE.
——————————-——-
LIFE INSURANCE
AIA Group and Citibank en-
ter into exclusive pan-Asian
bancassurance deal...
AIA Group and Citibank have
entered into a 15-year bancas-
surance partnership that spans
11 markets across the Asia-
Pacific region, specifically Aus-
tralia, China, Hong Kong, India,
Indonesia, Malaysia, the Philip-
pines, Singapore, South Korea,
Thailand and Vietnam. This is
an exclusive arrangement and
will be applied to all retail distri-
bution channels, including in-
branch, tele-marketing and
online activities. The product
areas covered under the deal are
retail and group life insurance
policies, and AIA will duly gain
access to Citibank's corporate
clients plus approximately 13
million retail customers and
cardholders across these 11 ter-
ritories.
... while Prudential and Stan-
dard Chartered extend exist-
ing partnership
Prudential and Standard Char-
tered have announced that they
have entered into a new agree-
ment expanding the term and
geographic scope of an existing
pan-Asian bancassurance part-
nership. The new 15-year agree-
ment, which covers 11 markets
and will commence in July 2014,
deepens a relationship that was
first established in 1998. Under
the terms of the new agreement,
a wide range of Prudential's life
insurance products will be dis-
tributed on an exclusive basis
through Standard Chartered
branches in nine countries –
Hong Kong, Singapore, Indone-
sia, Thailand, Malaysia, the Phil-
ippines, Vietnam, India and Tai-
wan – subject to applicable
regulations in each country.
Moreover, in China and South
Bancassurance

12
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Korea, Standard Chartered will
distribute Prudential's life insur-
ance products on a preferred
basis.
Manulife commences sales of
annuities through Japanese
bank
In Japan, Manulife has an-
nounced that it will commence
sales of 'Lifetime Currency', a
foreign currency-denominated
individual fixed annuity product,
through Chiba Bank. The prod-
uct enables clients to receive an
annuity in the selected foreign
currency over the course of
their lifetime.
——————————-——-
MOTOR INSURANCE
Credibom introduces motor
insurance in partnership with
BES Seguros
Credibom, the Portuguese sub-
sidiary of Crédit Agricole Con-
sumer Finance, has launched a
new motor insurance policy for
its customers. Specifically, cus-
tomers taking out a Credibom
loan to buy a car at a dealership
can now buy motor insurance at
the same time, with a choice of
three levels of cover. This policy
is backed by its local insurance
partner, BES Seguros, itself a
joint venture co-owned by
Crédit Agricole and Espírito
Santo Financial Group.
GENERAL
MetLife acquires equity
stakes in Malaysian bancas-
surance companies
In Malaysia, MetLife has
reached an agreement with
AMMB Holdings to seek regula-
tory approval of a proposed
strategic partnership involving
AmLife Insurance (AmLife) and
A m F a m i l y T a k a f u l
(AmTakaful). Upon receipt of
regulatory approvals and satis-
faction of certain other condi-
tions, the proposed transaction
will result in MetLife owning an
equity stake of 50% plus one
share in AmLife with the re-
maining shares to be owned by
AMMB, and AMMB owning an
equity stake of 50% plus one
share in AmTakaful with the
remaining shares to be held by
MetLife.
In addition, the proposed trans-
action will result in AmLife and
AmTakaful entering into exclu-
sive 20-year bancassurance and
'bancatakaful' agreements for
the distribution of life insurance
and family takaful products
through the distribution net-
work of AMMB’s banking sub-
sidiaries, AmBank and AmIs-
lamic Bank in Malaysia. The to-
tal consideration for the pro-
posed transaction payable by
MetLife upon completion is RM
812 million (equivalent to
around USD 249 million), sub-
ject to customary adjustments.
AMMB is the holding company
of the fifth-largest banking
group in Malaysia by market
capitalisation (AmBank Group)
with MYR 129 billion of assets,
187 branches, and over 4 million
retail customers. AmLife is an
established life insurance busi-
ness that has been operating
since 1973 and that distributes
protection, savings and invest-
ment-linked products through
agency, bank and group chan-
Bancassurance

13
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nels. Meanwhile, AmTakaful
started operations in January
2012 and distributes Shariah-
compliant products.
Spanish bancassurance joint
venture introduces first non-
life insurance policies
In Spain, Bankinter Seguros
Generales, a joint venture un-
derwriter co-owned by
Bankinter and MAPFRE, has
introduced its first products in
the areas of commercial and fu-
neral expenses insurance. These
will be followed by further new
product launches, mainly in the
field of health insurance. Note
that Bankinter and MAPFRE
have co-operated since 2007 in
the area of life insurance by
means of a separate joint ven-
ture underwriter, Bankinter
Seguros de Vida.
MAPFRE consolidates Span-
ish bancassurance partner-
ship with Bankia
Also in Spain, MAPFRE has
entered into an agreement to
become the exclusive bancassur-
ance partner of banking group
Bankia for both life and non-life
insurance products. Simultane-
ously, it has acquired for EUR
151.7 million the 51% equity
stakes held by Bankia in Aseval
and Laietana Vida, plus a 100%
holding in Laietana Seguros.
These are three 'legacy' bancas-
surance underwriters that be-
came part of Bankia following
its creation through the merger
of a number of different re-
gional banks.
AXA and BNP Paribas agree
to terminate their sharehold-
ers’ agreement
AXA and BNP Paribas have
announced a mutual decision to
terminate an agreement con-
cluded in 2010 concerning re-
ciprocal shareholdings. In force
for an initial period of three
years, this agreement was renew-
able automatically for successive
periods of one year. As at April
2014, the residual reciprocal
shareholdings of AXA and BNP
Paribas were lower than 0.1% of
the equity capital of each. Nev-
ertheless, AXA and BNP
Paribas have reaffirmed their
intent to maintain their relation-
ship otherwise.
——————————-——-
Affinity Banking News
AFFINITY BANKING
NatWest and RBS extend
banking services available at
Post Office outlets
In the UK, NatWest and RBS
have disclosed that they are ex-
tending the services that per-
sonal and business customers
can use through around 11,500
branches of the Post Office to
include paying in of cash and
cheques from later in 2014. This
means that customers of the
two brands will have access to
22,500 locations across the UK
where they can carry out every-
day banking as well as being able
to bank online or by phone. Ac-
cording to research, 90% of the
UK population lives within one
mile of a Post Office outlet
while 99% live within three
miles of one.
BNP Paribas ties with Paris
Bar for affinity banking deal
for young lawyers
In France, BNP Paribas and the
Barreau de Paris (the Paris Bar)
have signed a partnership agree-
ment to help young lawyers to
establish themselves more easily
through the provision of prefer-
ential conditions and rates asso-
ciated with banking products. In
particular, the bank has created
a special package for lawyers
registered with the Paris Bar and
who are setting up on their own
for the first time, with finance
of up to EUR 25,000 being
made available without requiring
any collateral, consisting of a
line of credit of up to EUR
20,000 and / or a property lease
of up to EUR 5,000. The
branch of BNP Paribas serving
the law courts employs 11 staff
dedicated to serving barristers.
——————————-——-
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AUTOMOTIVE FINANCE
Volkswagen Financial Ser-
vices acquires MAN Finance
International...
Volkswagen Financial Services
has announced the acquisition
of Munich-based MAN Finance
International. This purchase en-
ables Europe’s largest automo-
tive financial services provider
to expand its business to include
financing, leasing and rental ac-
tivities for MAN Truck & Bus,
and it has stated that truck and
bus activities will become a core
business in future at Volks-
wagen Financial Services. The
services of MAN Finance Inter-
national range from leasing and
hire purchase through to credit
solutions for the trucks and
buses of MAN Truck & Bus. As
of June 2013, the company had
515 employees and total assets
of EUR 3.4 billion.
... and launches a joint ven-
ture with WesBank in South
Africa
Meanwhile, Volkswagen Finan-
cial Services has launched a new
automotive finance joint venture
in South Africa with WesBank, a
subsidiary of the FirstRand
group. Known as Volkswagen
Financial Services South Africa,
the Germany-based automotive
captive owns 51% of the equity
of the new company while Fir-
stRand holds the remaining 49%
through WesBank, which is a
specialised operator in the vehi-
cle and asset finance business.
Prior to the creation of the joint
venture, WesBank had already
been the finance partner for VW
group in South Africa; thus, the
new arrangement is an extension
of that existing relationship.
——————————-——-
CO-BRANDED CARDS
MasterCard introduces vir-
tual / traditional prepaid card
with Orange in Spain
In Spain, Orange and Master-
Card have unveiled the launch
of 'Orange Cash', a co-branded
prepaid card that is recharge-
able, and that can be used within
smartphones or as a traditional
payment card. Specifically, card-
holders can make secure online
payments, can send money to
the mobile phones of other Or-
ange Cash users for free and,
using the traditional prepaid
card with contactless functional-
ity, can pay any merchant or
withdraw cash at MasterCard
ATMs worldwide. Use of
'Orange Cash' does not require a
bank account, and the product
works with all phone numbers
of every Spanish carrier with a
mobile app that is compatible
with mobile phones on both
Android and Apple iOS operat-
ing systems.
CIBC and Tim Hortons un-
veil new co-branded loyalty
rewards card
In Canada, CIBC and food ser-
vice chain Tim Hortons have
announced plans to launch a co-
branded loyalty rewards Visa
credit card. The new card is
scheduled to be made available
from May 2014 and will allow
cardholders to accumulate 'Tim
Cash' rewards for all purchases
made on it. Cardholders will
earn 1% 'Tim Cash' on all pur-
chases made using the card, with
that rewards 'currency' then re-
deemable instantly, using the
same card, at participating Tim
Hortons locations to purchase
coffee, baked goods or any
other products. Tim Hortons
runs more than 3,500 food ser-
vice outlets in Canada, plus a
smaller number within the US
and the Middle East.
——————————-——-
CONSUMER FINANCE
Compass expands distribu-
tion network through MPS
consumer finance deal
In Italy, banking group Monte
dei Paschi di Siena (MPS) and
Compass, a consumer credit
company owned by Medio-
banca, have signed an agreement
for the distribution of the lat-
ter's consumer finance products
through over 2,300 branches of
the bank. The deal is in line with
Affinity Banking

15
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the banking group's business
plan for the period from 2013 to
2017 and aims to expand its
range of lending products, also
available from Consum.it, its
own consumer finance subsidi-
ary. Meanwhile, Compass bene-
fits from a substantial increase
in its distribution network to
around 7,500 bank branches
that belong to a combined total
of more than 50 Italian banks.
——————————-——-
MOBILE / ONLINE PAY-
MENTS
MasterCard ties with Moni-
tise to accelerate mobile pay-
ment solutions worldwide...
In a variety of territories around
the world, MasterCard has en-
tered into a number of new
agreements focused on mobile
payments.
First, it has announced its inten-
tion to enter into a commercial
agreement with Monitise to ac-
celerate the development and
deployment of mobile wallets
and digital payment solutions by
financial institutions worldwide.
Simultaneously, MasterCard also
intends to make a minority in-
vestment in Monitise. Monitise
provides solutions that are de-
signed to help consumers bank
anywhere, pay anyone and buy
anything through mobile appli-
cations. It is hoped that the
combination of MasterCard and
the complementary expertise of
Monitise in developing mobile
platforms for commerce and
banking will result in additional
innovative and secure solutions.
... and creates HomeSend
joint venture with eServ-
Global and BICS...
Secondly, MasterCard has re-
vealed the creation of
HomeSend, a joint venture co-
owned by eServGlobal (a mobile
money solutions provider) and
BICS (a telecoms services com-
pany), which will enable con-
sumers to send money to and
from mobile money accounts,
payment cards, bank accounts
or cash outlets regardless of
their location or that of the re-
cipient. In particular, the joint
venture will leverage the current
HomeSend platform, a remit-
tance hub based on eServGlobal
technology and developed as
part of a strategic partnership
between eServGlobal and BICS.
This platform was the first to
market in offering international
mobile remittances and cur-
rently has live deployments in
50 countries plus commercial
contracts with mobile network
operators (MNOs) and money
transfer operators (MTOs) that
represent more than 1.2 billion
subscribers – the equivalent of
one in seven of the world’s
population – and 200,000 cash
agents.
By connecting MNOs and
MTOs worldwide to over
24,000 financial institutions on
the MasterCard network, it is
intended that the joint venture
will provide consumers with
new options and flexibility for
sending or receiving funds and
will enable cross-border remit-
tance payments worldwide. In
particular, for individuals in de-
veloping markets, the receipt of
funds from friends and family is
an important lifeline and, based
on World Bank estimates, remit-
tances to developing countries
will reach a value of around
USD 515 billion by 2015.
... with these initiatives sup-
plemented by others in Ger-
many, Lebanon and the UK
Thirdly, in Germany, Master-
Card has disclosed that it will
collaborate with Deutsche Tele-
kom, Telefónica Deutschland,
Vodafone and TREVICA (a
European payment processing
company owned by MasterCard
itself) to create a new mobile
platform and to accelerate the
development of mobile pay-
ments in the country. The three
mobile operators account for
around 80% of mobile subscrib-
ers in Germany, which means
that the agreement will allow
banks and financial institutions
to accelerate hugely their ability
to provide mass-market mobile
payment services to consumers.
Instead of connecting to indi-
vidual mobile operators, issuing
banks can now connect to TRE-
Affinity Banking

16
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VICA and gain access to a num-
ber of mobile operators with
one single integration to the
TREVICA platform.
Fourthly, in Lebanon, Master-
Card has partnered with Bank
Audi plus mobile operators Alfa
and Touch to introduce a new
cashless mobile payment solu-
tion ('Tap2Pay') that allows con-
sumers to make everyday pay-
ments safely, quickly and easily
by means of near field commu-
nication (NFC) technology. In
addition to providing value-
added benefits to cardholders,
the contactless payment solution
– which will be available later in
2014 – will also enable mer-
chants to operate more effi-
ciently, will reduce the risks as-
sociated with cash handling, and
will allow them to differentiate
themselves from competitors.
There are 2,100 contactless ter-
minals across Lebanon that have
the capacity to accept NFC pay-
ments available at a wide range
of locations including supermar-
kets, retail stores, gas stations,
restaurants, theatres and tourist
attractions. As Bank Audi in-
creases investment to roll out
new terminals, this number is
set to increase to 3,000 by the
end of 2014.
Finally, in the UK, MasterCard
is partnering with Weve, a joint
venture of the UK’s three larg-
est mobile operators, to acceler-
ate the development of what the
partners report as being the
UK’s most comprehensive con-
tactless mobile payments sys-
tem. In particular, it is intended
that the partnership will provide
consumers with a fast, safe and
convenient way to pay via their
mobile phones at point of pur-
chase by simply tapping their
mobile phone to make a pay-
ment. Under the terms of their
agreement, MasterCard will pro-
vide technology and integration
services to banks and financial
institutions wishing to take ad-
vantage of Weve’s payments
platform, accelerating their abil-
ity to offer customers mobile
payments. It is hoped that the
arrangement of Weve with
MasterCard will create the most
ubiquitous platform for contact-
less mobile payments in the UK.
Visa Europe rolls out mobile
contactless payments with
Orange in two French cities...
In France, Visa Europe and Or-
ange have undertaken the com-
mercial launch of 'Orange Cash'
in Caen and Strasbourg, two of
the cities with the highest use of
contactless payments in France.
By means of the launch, Orange
becomes the first mobile net-
work operator in France to offer
mobile contactless payments to
its customers.
Specifically, the 'Orange Cash'
application acts as a ‘mobile
purse’, taking the form of a Visa
prepaid card linked to a phone.
In order to take full advantage
of the Visa contactless payment
solution, Orange customers who
have an NFC smartphone com-
patible with 'Orange Cash' will
have to go into an Orange store.
Once the app has been
downloaded, it is then straight-
forward for users to activate the
service, regardless of their bank.
The 'Orange Cash' application is
based on a prepaid account that
customers can top up via any
debit or credit bank card. Once
the app has been topped up,
customers can use the smart-
phone like any other wallet, in
any retail outlet that accepts
Visa contactless payments
worldwide. To make a payment,
users simply place their mobile
phone on a payment terminal
that accepts contactless pay-
ments with a passcode chosen
by the user required for any pay-
ment over the contactless limit.
... and collaborates with Caix-
abank plus Orange,
Telefόnica and Vodafone in
Spain
Meanwhile, in Spain, Visa
Europe is co-operating with
CaixaBank plus mobile network
operators Orange, Telefόnica
and Vodafone, to launch what
they claim to be Europe’s largest
commercial mobile contactless
payments service. In particular,
since February 2014, CaixaBank
customers have been able to
make contactless payments
quickly and safely using their
Affinity Banking

17
www.finaccord.com
contactless-enabled smart-
phones. The partnership with
the three mobile operators en-
ables the card details of custom-
ers who register for the Caixa-
Bank mobile payments service
to be encrypted and securely
stored on a contactless-enabled
SIM card. These customers are
then able to use the CaixaBank
mobile banking application to
easily manage their money and
make contactless payments
globally anywhere that they see
the Visa contactless symbol.
With the combined customer
base of Orange, Telefόnica and
Vodafone accounting for more
than 80% of the Spanish market,
the service will be available to an
extensive number of consumers
from the outset.
Visa Europe ties up new part-
nerships with 15 IPSPs for
V.me by Visa service
Visa Europe has also announced
new partnerships with 15 inter-
net payment service providers
(IPSPs), thereby endowing its
V.me by Visa digital wallet ser-
vice with access to their exten-
sive e-commerce merchant port-
folios, and supporting the con-
tinued growth and availability of
the multi-market wallet service.
The agreements increase sub-
stantially the reach of V.me by
Visa and, as a result, Visa ex-
pects that many more retailers
will have access to V.me and be
capable of processing transac-
tions by the end of 2014. Spe-
cifically, and in alphabetical or-
der, its new IPSP partners in
E u r o p e a r e : B e 2 B i l l
(Rentabiliweb); Capita Software
Services; CreditCall; Dotpay;
eCard; First Data; FIS; Paybox
(Point VeriFone); Payline (by
Monext); Payzen (by Lyra Net-
work); Pensio; Sage Pay; The
Logic Group; Verifone; and
Worldline (an Atos subsidiary in
e-payment services).
Alpha Bank links with First
Data, Visa Europe and Voda-
fone for contactless payment
pilot
In Greece, Alpha Bank and Vo-
dafone, in partnership with Visa
Europe and First Data, have
introduced 'Tap ΄n Pay' as the
country's first mobile phone ap-
plication for contactless pay-
ments. This mobile wallet app
uses near field communication
(NFC) technology for fast and
secure transactions. Contactless
transactions for purchases below
EUR 25 are possible in shops
where contactless card accep-
tance terminals are in use by
debiting bank accounts linked to
the card. However, for pur-
chases over EUR 25, a passcode
is required. Initially, the service
is being trialled on a pilot basis
for users of selected Samsung
Galaxy handsets.
Western Union links with
Paga for Nigerian mobile
money transfer service
In Nigeria, Western Union has
unveiled the launch of a new
mobile money transfer service in
co-operation with Paga, a mo-
bile payment platform with
more than 1.2 million users.
Paga users now have the option
of receiving Western Union
transfers directly to their Paga
account and can then withdraw
the money by sending it to a
bank account, withdrawing it
from an ATM or receiving it
through Paga’s network of over
4,000 agents across the country.
They can also choose to pick up
their funds at participating
Western Union locations in Ni-
geria.
Bradesco and Claro roll out
'My Money' as mobile pay-
ment account
In Brazil, banking group
Bradesco and mobile network
operator Claro have begun mar-
keting 'My Money', a prepaid co-
branded payment product, on a
nationwide basis. Specifically,
'My Money' is a payment ac-
count that permits prepaid
transactions in affiliated shops,
transfers between customers,
withdrawals and direct reloading
through mobile phones, and it
can be used at over 47,000 loca-
tions across Brazil. The launch
follows the completion of a pi-
lot period that began in October
Affinity Banking

18
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2013.
Toyota Financial Services
signs up to Barclays' Pingit
for mobile payments
In the UK, Toyota Financial
Services, the financial services
arm of automotive manufacturer
Toyota, has begun offering cus-
tomers the option to make addi-
tional payments on car finance
plans by simply using their mo-
bile phone. Specifically, Toyota
Financial Services has signed up
to Pingit, which will enable its
customers to make quick, easy
and secure additional and final
payments on their plans by us-
ing a smartphone or tablet. The
app is free to download and can
be used by anyone who has a
UK mobile number and a UK
bank account.
Sky chooses Wirecard to
process payments for new
online media initiative
In Austria and Germany, Wire-
card has announced that it has
begun processing cashless pay-
ments for Snap, the new online
media library of satellite broad-
caster Sky. The video-on-
demand platform has been avail-
able in the two countries since
mid-December 2013. Wirecard
will allow customers to make
payments for media subscrip-
tions as well as one-off rental
payments using stored, en-
crypted payment information
linked to their Sky account.
——————————-——-
PAYMENT CARD ACCEP-
TANCE AND ISSUANCE
Ecobank customers across 28
African countries gain access
to MasterCard products
With a focus on up to 28 sub-
Saharan countries in Africa,
MasterCard and the Ecobank
Group have unveiled a multi-
country licensing agreement
which will provide the bank's
customers with access to
MasterCard’s electronic pay-
ments solutions. The agreement
is the culmination of a memo-
randum of understanding origi-
nally signed in November 2011
and, importantly, facilitates po-
tential electronic payments ac-
cess to more than 60% of Af-
rica’s population.
In particular, Ecobank subsidi-
aries in 28 countries across sub-
Saharan Africa are now licensed
to issue and accept electronic
payments through MasterCard
prepaid, debit and credit cards.
With this partnership, Eco-
bank’s customers in this fast-
growing region will have access
to MasterCard’s credit, debit
and prepaid card products,
whilst MasterCard will leverage
Ecobank’s strong pan-African
footprint to provide its elec-
tronic payments solutions to a
wider customer base.
Under the terms of the memo-
randum of understanding,
MasterCard partnered with Eco-
bank to explore joint business
development opportunities
across the African continent
where Ecobank has a presence.
In addition, the banking group
became an issuer and acquirer of
MasterCard products in more
than 1,200 branches across Af-
rica, giving its customers access
to over 35.9 million acceptance
points – including 2.1 million
ATMs – in over 210 countries
and territories worldwide where
MasterCard cards are accepted.
JCB expands presence in
south-east Asian countries...
Japan-based payment services
company JCB has unveiled a
trio of deals that aim to expand
its footprint in south-east Asia.
In Cambodia, it has forged an
agreement with ACLEDA Bank
which will see the bank add JCB
to the list of cards accepted by
its merchant clients, meaning
that JCB cards will be accepted
at over 650 locations through-
out the country. In Laos, JCB
and Phongsavanh Bank (PSVB),
the largest domestic private
commercial bank, have an-
nounced the launch of the first
ever JCB credit card in the
country. Finally, in Myanmar,
JCB has secured a deal with the
Myanmar Payment Union, the
country's national payment net-
work, meaning that its cards
have been accepted at over
2,000 affiliated merchants from
Affinity Banking

19
www.finaccord.com
the beginning of 2014.
... with UnionPay following
suit in the same region plus
Africa and the Middle East
Likewise, UnionPay, the domi-
nant payment services provider
in China, has also established
several new agreements in
emerging markets.
In the Democratic Republic of
the Congo, it has combined with
Rawbank to announce a raft of
new measures including the ac-
ceptance of UnionPay cards at
all Rawbank ATMs and the ex-
pansion of UnionPay accep-
tance through Rawbank POS
terminals, as well as an agree-
ment to issue the first ever Un-
ionPay RMB card in the coun-
try. As the largest commercial
bank in the Democratic Repub-
lic of the Congo, Rawbank's lo-
cal ATMs and merchant net-
work hold a share of around
30% of their respective markets.
Meanwhile, in Kuwait, Union-
Pay has signed a memorandum
of understanding with Kuwaiti
bank card switching network
KNET, aimed at expanding its
card business in the country to
the network's ATMs and POS
terminals.
In Laos, UnionPay and com-
mercial bank BCEL have agreed
to upgrade UnionPay cards is-
sued in the country in future to
cards with a security micro-chip,
as well as to upgrade the ATMs
and POS terminals operated by
the bank so that they accept
these new UnionPay chip cards.
Finally, in Myanmar, UnionPay
has created a card-issuing part-
nership with CB Bank, a co-
operative bank. The new Union-
Pay cards will be accepted by all
POS terminals operated by the
bank which should help Union-
Pay to reach an acceptance rate
of over 90% among merchants
in the country. The two parties
have also made plans to start
issuing UnionPay debit and in-
ternational prepaid cards over
the course of 2014.
Société Générale signs agree-
ment with Discover Financial
Services
In France, Société Générale has
agreed to add cards linked to the
Diners Club and Discover net-
works to those accepted by its
merchants from early 2014, as
part of its strategy to support
these merchant customers when
dealing with foreign tourists.
This strategy began with an
agreement between the bank
and UnionPay in June 2013 that
was focused on Chinese tourists.
Discover Financial Services (the
owner of Diners Club Interna-
tional) aims to build an exten-
sive network of merchants ac-
cepting its cards for customers
living or travelling abroad, and
France is an important market
for it as one of the world's lead-
ing tourist destinations.
——————————-——-
RETAILER CARDS
Citibank rolls out co-branded
retailer card with Czech
online shopping mall
In the Czech Republic, Citibank
has unveiled a new credit card in
co-operation with MALL.CZ,
one of the largest online shop-
ping galleries in the country,
thus expanding its credit card
portfolio. One of the principal
benefits of the new Citi
MALL.CZ contactless credit
card is the convenience of ap-
plying for the card online
through the MALL.CZ website.
In addition, cardholders may
spread out their purchases on
MALL.CZ in instalments with-
out incurring surcharges as well
as gaining 2% of the value of
the purchase for every transac-
tion with the card up to a total
of CZK 1,000 per month.
Moreover, as is the case is with
all customers with credit cards
issued by Citibank in the Czech
Republic, those with the Citi
card can also benefit from dis-
counts of up to 25% with the
more than 400 partners of the
Citi Club program across the
country.
GE Capital Retail Bank ex-
tends credit card program
with furniture chain...
In the US (and Puerto Rico),
Affinity Banking

20
www.finaccord.com
Republic, those with the Citi
card can also benefit from dis-
counts of up to 25% with the
more than 400 partners of the
Citi Club program across the
country.
GE Capital Retail Bank ex-
tends credit card program
with furniture chain...
In the US (and Puerto Rico),
GE Capital Retail Bank has an-
nounced that it has extended its
agreement with the Ashley Fur-
niture HomeStore chain to con-
tinue providing consumer fi-
nancing through more than 480
stores that are independently
owned and operated. As part of
the multi-year agreement, GE
Capital’s retail finance business
will carry on managing the Ash-
ley Furniture HomeStore con-
sumer credit card program,
which was first introduced in
2011. This program provides
special financing with conven-
ient monthly payments to ap-
proved cardholders, as well as
exclusive discounts and online
account management.
... and prepares for IPO and
re-branding as Synchrony Fi-
nancial
Moreover, GE has also dis-
closed that it has filed a registra-
tion statement with the Securi-
ties and Exchange Commission
for the initial public offering
(IPO) of its North American
retail finance business, which
includes GE Capital Retail
Bank. Expected to take place
later in 2014, this IPO is the
first step in a planned staged
exit from that business. After
completion of the IPO, the
business will operate under its
new name, Synchrony Financial.
GE is planning to complete its
exit from the retail finance busi-
ness through a 'split-off' transac-
tion in 2015 although it may
also decide to exit by selling or
otherwise distributing or dispos-
ing of all or a portion of its re-
maining interest in the business.
——————————-——-
GENERAL
American Express and Uni-
versal Studios expand mar-
keting relationship
American Express and Univer-
sal Studios have announced an
expanded multi-year agreement
that brings the latter's theme
parks and filmed entertainment
together with the brand of
American Express with the aim
of creating exclusive consumer
benefits and experiences. The
agreement also enables Ameri-
can Express, for the first time,
to acquire new card members
directly through Universal
theme parks and web sites.
While the two partners have
worked together since 2008,
they hope that the expanded
partnership presents new and
innovative marketing opportuni-
ties for both companies.
In particular, it will now include
marketing opportunities that
leverage Universal Pictures’ re-
tail partners, consumer licensing
and digital media platforms on a
global basis. At the same time,
American Express has the first
opportunity among payment
services providers to participate
in product placement and co-
promotion on Universal Pic-
tures’ films. In addition, the
partners will also work together
to offer Universal’s assets, in-
cluding special holiday and sea-
sonal theme park events, film
premieres and VIP screenings of
selected Universal films, to eligi-
ble American Express card
members and prospects world-
Affinity Banking

21
www.finaccord.com
ACLEDA Bank, 18
ADAC, 6
Ageas, 7
AIA Group, 6, 11
AIG, 4
Airtel Money, 9
Alfa, 5, 16
Alfa Romeo, 5
Allianz, 7, 9, 10
Allianz Global Assistance, 7, 9
Alpha Bank, 17
AmBank Group, 12
American Express, 20
AMMB Holdings, 12
Apple, 4, 14
Ashley Furniture HomeStore, 20
Assurant, 4
Atos, 17
AXA, 13
Bank Audi, 16
Bankia, 13
Bankinter, 13
Barclays, 18
BCEL, 19
Be2Bill, 17
Beazley, 5
BES Seguros, 12
Bharti Airtel, 9
BICS, 15
BMG Insurance Brokers, 7
BNP Paribas, 13
Bradesco, 17
Brightstar, 8, 9
British Insurance Brokers' Association, 5
Caixabank, 16
CaixaBank, 16
Capita Software Services, 17
CarGarantie, 7
Chiba Bank, 12
Chrysler, 5
CIBC, 14
Cigna, 5
Citibank, 11, 19
Citigroup, 11
Claro, 17
CNA Warranty, 9
Compass, 14
Credibom, 12
Crédit Agricole Consumer Finance, 12
CreditCall, 17
Daimler, 7
Deutsche Telekom, 15
Direct Line, 7
Discover Financial Services, 19
Discovery, 6
DKV, 5, 6
Dodge, 5
Dotpay, 17
Dove Insurance Services, 9
eCard, 17
Ecobank, 18
EPIC, 9
ERGO, 5
eServGlobal, 15
Espírito Santo Financial Group, 12
Euler Hermes, 10
Fédération Française de BasketBall, 4
Fiat, 5
First Data, 17
FIS, 17
Florida Public Utilities, 4
GE Capital Retail Bank, 19, 20
Germanwings, 10
H Bauer Publishing, 9
HanseMerkur, 9, 10
HDI, 5, 6
HomeSend, 15
HomeServe, 4, 5, 8
Honda Insurance Services, 7
HSBC, 10, 11
Iké Asistencia, 4
Jaguar Land Rover, 7, 8
JCB, 18
Jeep, 5
Junction, 10
Lancia, 5
MALL.CZ, 19
MAN Finance International, 14
Manulife, 12
MAPFRE, 8, 9, 13
MAPFRE Assistance, 9
MAPFRE WARRANTY, 8
MasterCard, 14, 15, 16, 18
Mediobanca, 14
Mercedes-Benz, 7
MetLife, 11, 12
Micro Center, 8
Monext, 17
Monitise, 15
Monte dei Paschi di Siena, 14
NatWest, 13
Orange, 14, 16, 17
Paga, 17
Paris Bar, 13
Paybox, 17
Payline, 17
Payzen, 17
Pensio, 17
Post Office, 10, 13
Prudential, 11, 12
Rawbank, 19
RBS, 13
Real Garant, 7
Renault, 8
Safe-Guard Products, 8
Sage Pay, 17
Sky, 18
Société Française de Garantie, 8
Société Générale, 19
Softbank, 8
Solid Försäkringar, 5
STA Travel, 9
Standard Chartered, 11
Sterling, 7
Synchrony Financial, 20
Talanx, 5
Telefónica Deutschland, 15
Telefόnica, 16, 17
The Logic Group, 17
The Warranty Group, 8
Tickets.com, 7
Tim Hortons, 14
Touch, 16
Toyota Financial Services, 18
TREVICA, 15, 16
TTK Group, 5
TVG Touristik, 9, 10
TVS Automobile Solutions, 8
UnionPay, 19
Universal Pictures, 20
Universal Studios, 20
Vauxhall, 7
Verifone, 17
Virgin Group, 9
Virginia Surety Company, 8
Visa, 14, 16, 17
Visa Europe, 16, 17
Vodafone, 15, 16, 17
Volkswagen Financial Services, 14
Wertgarantie, 8
WesBank, 14
Western Union, 17
Weve, 16
Wirecard, 18
Worldline, 17
Zurich, 6, 7
Organisations in this issue

22
www.finaccord.com
About GAFC
The Global Affinity Finance Club is
Finaccord’s quarterly newsletter about
affinity financial services worldwide.
Through this, Finaccord publishes top
line information about key strategic
developments in affinity and partner-
ship 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 addi-
tion, it concentrates exclusively on
affinity and partnership marketing
strategy.
Affinity and partnership marketing
strategy is an important component of
general distribution strategy for a ma-
jority of large banks and insurance
companies serving consumers and
small businesses as successful partner-
ships potentially allow them to access
groups of customers that they cannot
always reach by themselves.
If you would like to join Finaccord’s
Global Affinity Finance Club, contact
us by telephone or send us an email to
info@finaccord.com. Thereafter, each
quarter, we will send you a link to the
page of our website with fresh news
and future editions of this document.
About Finaccord
Finaccord is a leading market research,
publishing and consulting company
specializing in financial services. We
provide our clients with insight with a
particular focus on marketing and
distribution strategies, including affin-
ity and partnership marketing.
Our areas of expertise include: affinity
and partnership marketing; automotive
financial services; bancassurance; com-
mercial non-life insurance brokers;
consumer intelligence; creditor insur-
ance; distribution channels; extended
warranties; insurance and assistance
linked to payment cards and bank
accounts; mobile gadget and telephone
insurance; retailer financial services;
small business financial services; and
travel insurance and assistance.
Our international network of consult-
ants is able to deliver information
quickly and accurately across a range
of countries worldwide, basing re-
search projects on robust data and
knowledge rather than supposition
and theory.
© Finaccord Ltd., 2014
Registered in London No. 4542931
The Office Farringdon
24 Greville Street
London,
EC1N 8SS
Phone: +44 20 3178 2556
Fax: +44 20 7198 7902
Email: info@finaccord.com
www.finaccord.com
Does your organisation have
news about its affinity or part-
nership marketing relationships
that we missed in this newslet-
ter? To produce it, we system-
atically research close to 300
major financial services institu-
tions from around the world
each quarter. However, if you
would also like us to include
your company in this research,
please send an e-mail to analy-
sis@finaccord.com and we will
ensure that it is tracked in fu-
ture quarters.
To access the archive of news
from the Global Affinity Fi-
nance Club please visit
www.finaccord.com/afi
Finaccord’s latest published reports include:
 Aggregation Metrics: Consumer Approaches to Online Insurance Comparison Sites in Europe GBP 2,995
 Channels Metrics: Consumer Distribution Trends in UK Insurance GBP 2,495
 Creditor Insurance in Europe GBP 4,995
 Creditor Insurance in Latin America GBP 1,795
 Global Expatriates: Size, Segmentation and Forecast for the Worldwide Market GBP 1,995
 Retailer Insurance and Assistance in North and Latin America GBP 995
 Retailer Online Payment Acceptance in North and Latin America GBP 1,295
 Retailer Payment, Gift and Loyalty Cards in North and Latin America GBP 1,295
 Trade Credit Insurance in Europe GBP 2,995
 Trade Credit Insurance in Major Global Markets GBP 2,995

Global Affinity Finance Club Winter 2014

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