Bank Marketing International June 2006 2 NEWS

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03-05 NEWS 09 CAMPAIGN OF THE MONTH: SANTANDER ■ GE Consumer Finance teams up with eBay Spain’s Santander is six months into a comprehensive Bank ■ BBVA launches third baby loan campaign marketing campaign aimed at growing market share and ■ Barclays offers free anti-virus software increasing cross-sell ratios among key customers ■ Chase rolls out first Spanish language ad campaign Marketing 10 TRACKING THE VALUE OF SPORTS SPONSORSHIP International 06 PACKAGING THE MASS MARKET BMI talks to Ron Schneier, general manager of Nielsen South Africa’s Absa has developed a packaged banking Ventures, about the company’s Sponsorship Scorecard product in conjunction partly with UK parent Barclays 15 EUROPE’S MOST TRUSTED BRANDS 07 LAND OF OPPORTUNITY European consumers value nationality, mutuality and/or Ireland’s leading retail bank, AIB, has begun to offer a June 2006 Issue 190 state-participation, and market size when judging the dedicated service for the country’s large Polish community trustworthiness of banks, according to a survey

MARKETING TECHNOLOGY DIRECT BANKING HSBC awards global customer Citibank Direct proves a huge hit decisioning deal to Experian-Scorex with US consumers HSBC has selected customer management els, portfolio segmentation, decisions and technology from Experian-Scorex, the global actions to control and manage customer Charles Prince, CEO at Citigroup, has decision analytics business of Experian, to relationships and improve the quality of risk revealed that Citibank’s new direct bank- support the bank’s lending decisions around management. HSBC itself said it expects the ing operation, launched just two months the world. software to set appropriate strategies that ago (see BMI 188), has proved to be a huge The contract relates to the UK-based ven- help to manage every aspect of the customer/ success for the US financial giant. Citibank dor’s Strategy Management software tool and product relationship. Direct has raised some $3 billion in depos- will result in all of HSBC’s global businesses Keith Gabriel, head of marketing at its over the first eight weeks, two-thirds of implementing Strategy Management in a con- Experian-Scorex, told BMI: “As new or which is new money. version process to be completed by 2009. existing customers of the bank apply for a “In the first two days after launching, we The financial terms of the contract were new credit facility, the solution will enable had ten times the volume we predicted,” he not disclosed, but in an interview with BMI, HSBC to grow its portfolios while control- said at a presentation on 1 June, adding that George Lennox, senior manager, group credit ling the level of risk. Banks want new cus- the $3 billion raised so far is the equivalent and risk at HSBC, agreed that describing the tomers, but they also need to make sure that of opening 23 branches. move as a “multi-million pound, multi-year the customer applying for the product will Citibank Direct forms part of a growth- global deal” was a fair summary. adhere to the terms and conditions.” oriented restructuring of Citigroup’s opera- According to Lennox, the system – chosen Use of Strategy Management will enable tions, which includes expanding its branch after an extensive vendor evaluation that led the bank to score data characteristics, such as and electronic distribution networks, signifi- to HSBC’s incumbent primary provider Fair demographic data and financial history infor- cantly growing its international business and Isaac being displaced – will enable the bank mation, to determine the correct strategy to concentrating on cross-selling through bet- to implement bespoke decisioning techniques be taken with a customer. Depending on the ter divisional integration and more efficient and strategies for individual customers when specific profile of an applicant, the bank may marketing. they apply for new accounts or credit. Initial- be able to offer a product at a certain rate of Customers who sign up to Citibank Direct ly, the bank plans to use the solution within interest or, if the level of risk is deemed too must have both a deposit and a transactional its new business decision environment, but high, decline an application. account with Citibank already. “You cannot over time it will deploy the software to help it Gabriel added: “Banks like HSBC are very just have a deposit relationship – we want a manage existing customer relationships. focused upon delivering customer benefits so full relationship with customers. This is not a Strategy Management offers banks the customer service initiatives such as cross-sell, traditional internet bank,” Prince added. ability to consistently deploy scoring mod- up-sell and other promotional activities will Citibank Direct account holders are able be a key focus for them.” to access their account at Citibank’s near ■ GLOBAL RESULTS He summarised the principal benefits 1,000 branches and over 3,000 ATMs. HSBC – profit before tax by customer group, of Strategy Management as “enabling the Prince said that Citibank Direct had been year ended 31 December 2005 bank to balance the needs of [its] business helped by Citibank’s existing, successful – increasing volume, controlling credit risk online retail banking service (www.citibank. Private Corporate, Other Personal and reducing operational costs – with the com). It was ranked last month by comScore banking investment 0.3% (5) financial needs of the customer: timely and appropri- as the US online bank with the best cross-sell 4.3% (4) banking and services ate product offers and effective customer ratio (see BMI 189). markets 47.2% (1) service”. Some 40 percent of customers who open 24.6% (3) Lennox said that this type of solution has accounts via www.citibank.com live outside become an integral part of an organisation of the bank’s branch network areas. Through like HSBC. “Fast, effective and safe decision- its new internet bank, the bank said, it hopes ing means that customers will get a decision to reach many more customers. in real time,” he said. Prince stressed that Citibank Direct fur- As for benefits accruing to the bank, Len- ther strengthens Citibank’s overall standing nox stated that the new software, in combina- in the online market, a market that is grow- tion with scoring and business analytics, “can ing in importance as the role of the branch make the solution work well for us. We are in changes in the distribution mix. Commercial banking 23.6% (2) the process of lending money and if we can do “We are better positioned for the ultimate this safely and keep bad debt to a minimum, move to online banking. Eventually, online Notes: (1) $9,904m; (2) $4,961m; (3) 5,163m; (4) $912m; (5) $26m we are keen to take on customers.” banking will become the dominant way of Source: HSBC He added that HSBC is optimistic that the doing banking,” he said. 

VRL Publishing BENCHMARK INTELLIGENCE ON FINANCIAL SERVICES MARKETING Bank Marketing International June 2006 www.vrlpublishing.com 2 NEWS

 investment will provide a healthy return. “Our been hypnotised into thinking Fair Isaac’s Bank head of IT made it clear that he wanted to see a systems were the best in the marketplace.” Marketing proper tracking of the benefits [of the new soft- The reason for the vendor evaluation and, International ware] and the ability to say that we have made ultimately, change of supplier was, accord- a decision because of Strategy Management.” ing to Lennox, down to Fair Isaac intimat- The bank expects to be able to calculate ing to the bank that its StrategyWare system London Office additional revenue accrued as a direct result was to “be sunset” – which he explained The Colonnades, 82 Bishop’s Bridge Road, of implementing the solution. “The cost of as meaning that no updated versions of the London W2 6BB, United Kingdom Tel: +44 (0)20 7563 5600 making decisions will come down as we technology would be released by the vendor. Fax: +44 (0)20 7563 5602 make more decisions and [there is] a fixed “So we embarked on the vendor analysis,” price in place for the first five years. he added. Asia Office 3 Philip Street #08-02 “We have the option to continue year- “We tried to do it properly and did not Commerce Point on-year thereafter. If in, say, ten years we rush. We contacted all of the companies in Singapore 048693 find something better, we convert. It keeps the market we knew, eight in all, and received Tel: +65 6383 4688 Experian on their toes. We will spend ana- from them their RFI [request for informa- Fax: +65 6383 5433 lysts’ time tracking the benefits [of the prod- tion]. Three vendors were shortlisted: Fair Publisher: Edward Peck uct],” added Lennox. Isaac, Experian-Scorex and CGI/AMS. We Tel: +44 (0)20 7563 5670 may only change this sort of technology once E-mail: [email protected] Consistent tool across the business every ten years so this was a key decision. Editorial The new software will be implemented with- We spent hundreds of thousands of pounds Editorial Director: Gerard Lysaght Tel: +44 (0)20 7563 5691 in all HSBC businesses. “It’s policy,” said over the course of a one-year period going E-mail: [email protected] Lennox. “[We now run] common software through this evaluation process.” Group Editor: Diane Sim across [HSBC Group] businesses. We like Part of the procedure involved the three Tel: +44 (0)20 7563 5629 to run standard technology. We introduced shortlisted vendors spending two days in E-mail: [email protected] a new strategy in 2000 [and] since then we each of the three main regions in which Editor: Hugh Fasken have used consistent tools across our busi- HSBC operates: the UK, North America and Tel: +44 (0)20 7563 5616 nesses. As staff move [within the bank] they Asia-Pacific, presenting to the bank’s main IT E-mail: [email protected] inherit the same technology.” and business user groups. Asia Editorial: Titien Ahmad Emphasising the global nature of the deal, HSBC also visited banking clients of the Tel: +65 6383 4688 E-mail: [email protected] Lennox confirmed that any business subse- three vendors already using the software quently acquired by HSBC would be required solutions on offer. “We visited ABN AMRO Contributors: Douglas Blakey; Stafford Thomas to implement Strategy Management. in the Netherlands who had a Strategy Man- Chief sub-editor: Karen Leverington The conversion to Strategy Management agement system in place.” Sub-editor: Joanne Ruddock provides the bank with a major logistical HSBC assembled a forum of 60 staff to

Marketing challenge. “Two businesses have been con- evaluate the three shortlisted systems. “They Ann Tierney verted already, one in the UK and one in the met for two days and to assist them, because Tel: +44 (0)20 7563 5667 US, and ten more are ongoing. Conversion we are analytical, we scored every product in E-mail: [email protected] across all of our businesses will not be com- a number of ways. For example, adaptability, Subscriptions pleted until 2008 to 2009,” he said. ease of use, robustness and ability to run on Shamaila Pervaiz Once fully implemented, HSBC expects the different platforms,” said Lennox. Tel: +44 (0)20 7563 5638 E-mail: [email protected] software system to make more than 50 bil- At the end of the two days, the 60 forum lion customer decisions annually. What Len- members were unanimous in choosing Head of Asia Lee Wai Ling nox termed “scalability” was a crucial factor Experian-Scorex’s Strategy Management Tel: +65 6383 4688 in the bank choosing Experian-Scorex. solution. “It was very unusual that such a E-mail: [email protected] “We looked back about ten years to see decision was unanimous. It was a complex

For more information on VRL Publishing, visit our how many decisions the old system had group [of people] and I was quite surprised website at www.vrlpublishing.com made. A comparison was made with the someone did not disagree. The reason how- number of decisions now being made each ever was obvious: Strategy Management was For more information on accessing Bank Marketing year. With an increasing number of custom- clearly better,” concluded Lennox. International content online, or on sales and subscriptions to Bank Marketing International, ers and an increasing number of decisions per Andrew Jennings, vice-president at please telephone +44 (0)20 7563 5600 or go to customer to be made, scalability is so impor- Minneapolis-based Fair Isaac, told BMI: www.bankmarketinginternational.com tant,” he added. “The process by which HSBC evaluated their

© VRL Publishing Ltd, 2006 various options was rigorous and fair. Fair Registered in the UK No 02806152 Tough evaluation process Isaac has no dispute with the outcome or the ISSN 0791-2765 Lennox and Gabriel both agreed that the way by which it was reached. Unauthorised photocopying is illegal. The contents vendor evaluation system and bidding proc- “The relationship between HSBC and of this publication, either in whole or part, may not be reproduced, stored in a data retrieval system ess was extremely thorough. Fair Isaac is still strong and they continue to or transmitted by any form or means, electronic, HSBC had been utilising Fair Isaac’s purchase solutions core to the bank’s future mechanical, photocopying, recording or otherwise, StrategyWare system since 1996 and it was success from us. We continue to support without the prior permission of the publishers. in place within HSBC in 42 countries. “We StrategyWare for HSBC and our other users, had a good relationship with Fair Isaac,” and the decision to continue with that sup- said Lennox. “HSBC and Fair Isaac had done port lies entirely with the bank.”  a lot of work together and perhaps we had Douglas Blakey

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CARD MARKETING for playback on mobile devices Square Garden in New York, main features are 0 percent inter- GE Consumer Finance and personal computers. People helping to build awareness of the est, no fees, a €3,000 ($3,770) can listen to a podcast either on HSBC Women’s World Match maximum loan and a three-year teams up with eBay a computer or a mobile audio Play Championship at Hamilton repayment period. device, such as Apple’s iPod. Farm, New Jersey (6 to 9 July). It The bank hopes to make GE Consumer Finance (GECF) will be launched internationally 10,000 such loans during the and eBay, the world’s larg- INCENTIVE MARKETING on global channels such as CNN latest campaign, which will last est online auction site, have UOB offers cash and BBC World in the build-up until 30 September. In the two launched a credit card under rewards to customers to the HSBC World Match Play previous campaigns, it granted eBay’s well known online pay- Championship at Wentworth, a total of 19,351 loans worth ments brand PayPal. United Overseas Bank (UOB) UK (14 to 17 September) and €58.1 million, approving 98.8 The new PayPal Plus card is a has rolled out an incentive the HSBC Champions tourna- percent of applications. More- MasterCard credit card featur- deposit campaign offering cash ment in Shanghai, China (9 to over, the system of risk analysis ing a rewards programme exclu- to new customers in an effort to 12 November). was modified to favour access by sively for PayPal users. PayPal grow its business. Up until 31 poorer segments, said the bank. Plus customers receive extended August, Singapore-based UOB CARD MARKETING About 90.5 percent of bor- purchase protection for purchas- will reward customers with cash BofA offers bespoke rowers in the previous cam- es made using PayPal, access to for placing fresh deposits into a ‘pets on cards’ service paigns were Spanish and the special financing offers and inte- UOB FlexiDeposit Account. The remaining 9.5 percent came from grated online account manage- cash rewarded is proportion- Bank of America (BofA) is fol- Latin America, Africa, Western ment and alerts. ate to the amount deposited: lowing the trend for card person- Europe, Eastern Europe and Asia Cardholders also benefit from S$8,000 ($5,000) gets a S$50 alisation (see BMI 189) by giving (in descending order). exclusive access to ongoing bonus; S$15,000 gets S$150; its customers the opportunity to Women aged between 28 and promotional financing offers while S$50,000 gets S$600. put a picture of their pet on a 35 years old made up 49 per- from sellers on eBay, including Tay Han Chong, regional head new credit card. The card will cent of applicants. Another 26.5 deferred interest and no pay- of UOB deposits, investments and also gather reward points for percent of applicants were aged ments for a specific period of insurance strategy, said: “The deal pet-related expenses and dona- between 35 and 40, 12.8 per- time, by paying using the PayPal is aimed at rewarding customers, tions to participating animal cent were between 40 and 45, Plus card. as well as encouraging those who shelters. and only 4.1 percent were aged The PayPal Plus credit card is are not yet our customers.” BofA and Hill’s Pet Nutri- over 45. Some 38 percent of part of a new multi-year credit The bank is organising UOB tion, a pet food manufacturer, applicants earned less than €900 agreement under which GECF Bonus Cash Deal roadshows at are teaming up to offer the a month and 48 percent earned also plans to launch an eBay- selected shopping malls, train sta- PetRewards Visa Card. Con- €900 to €1,800. Only 13.2 per- branded credit card. tions and UOB group branches. sumers can customise their card cent earned more than €2,500. using an image of their pet by NEW MARKETING ADVERTISING sending in the picture by mail or CORPORATE SOCIAL RESPONSIBILITY smile is the latest bank HSBC rolls out global submitting a digital photo online Smith Barney launches to start podcasting Swings TV advert at www.mypetonmycard.com. green campaign They may also choose from three smile.co.uk, the online direct HSBC has launched a new glo- stock card designs. Smith Barney, the broker- bank run by Co-operative Finan- bal ad campaign based around Cardholders get two reward age unit of Citigroup, and the cial Services, the highly ethical its substantial golf sponsorship points for every dollar spent at National Arbor Day Founda- UK financial services group, programme. The campaign com- participating veterinary clinics, tion, a US non-profit organisa- has become the latest bank to plements the bank’s larger and major pet retailers, farm and tion, have launched a co-mar- publish podcasts in an effort to primary global advertising cam- feed stores, and neighbourhood keted promotion called Plant a communicate with, and attract, paign, Different Points of View pet stores. They also receive one Tree/E-Delivery, a nationwide customers (see BMI 188, 186). (see BMI 183). Called Swings, point for every dollar spent on effort to encourage a switch to The bank has signed a deal with the new initiative celebrates “the other purchases. Cardholders online statement delivery among leading London-based GCap eccentricities of golfers’ swings receive 500 bonus points with Smith Barney clients. The inita- Media’s radio station Capital and the fact that no two are the their first purchase and can earn tive seeks to raise environmental Radio to become the first spon- same”, said the bank. up to 100,000 points annually. awareness by planting trees in sor of Capital Radio podcasts. HSBC said it will use the national forests. The initiative, which was ads to support its position as SEGMENTATION For each client who enrolls planned by digital media agen- a worldwide sponsor of golf, BBVA launches third in the firm’s E-Delivery service, cy i-level, includes ten-second which extends from the pro- new baby loan Smith Barney will make a dona- bumper ads, online advertori- fessional game right through tion in the client’s name to the als, promotional homepages and to the grass roots level of the Spain’s BBVA has launched a National Arbor Day Foundation e-mail campaigns to Capital sport. It will also drive traffic third loan campaign aimed at which will be used to plant a tree Radio’s VIP club members. to HSBC’s proprietary website, mothers who have recently given in one of three national forests, Podcasting is the method of www.hsbcgolf.com. birth to, or adopted, children. including the Huron-Manistee distributing multimedia files, Swings launched on 8 June The loan is intended to help National Forest in Michigan such as audio programmes or 2006 on a huge Jumbotron tel- cover the costs associated with a and the Ocala National Forest music videos, over the internet evision screen outside Madison recent addition to the family. The in Florida. 

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SECURITY ADVERTISING Barclays offers anti-virus software Chase launches its first Spanish ad Barclays, the UK’s third-largest retail bank, Atlanta-based SunTrust became the first campaign says it has become the first UK bank to offer bank to begin offering select customers free anti-virus software to its customers free of anti-identity theft software (see BMI 189). charge. In January this year, Barclays signed a mar- Chase, the US retail arm of JPMorgan Chase, Barclays customers are also being offered keting deal with Helsinki-based F-Secure, has rolled out its first television advertising a text message service notifying them of new recommending the company’s products to campaign aimed at the significant Hispanic payees on their online account, helping, says its broad customer base. As part of the deal, community in the US. the bank, to potentially cut occurrences of Barclays promoted the offer to its e-mail The ads are part of a broader new Spanish fraud attacks. customers in January and it included details language campaign called Confia en ti. Con- Barclays is offering its online customers of the software and tips on secure online fia en Chase (Confidence in yourself. Con- F-Secure’s anti-virus software, which the banking in the February issue of its customer fidence in Chase), which includes print and bank describes as one of the more effective magazine Talk Money. radio ads as well as ads at bus shelters and products of its kind, one which has the fast- “This [new] offer places Barclays in a other outdoor locations, aimed at what the est response times as well as automatic hour- different league to its competitors when it bank describes as a “fast-growing customer ly updates. It prevents viruses and worms comes to keeping customers safe online,” segment”. from being downloaded to a computer, scans said Risto Siilasmaa, president and CEO at The campaign includes a 60-second launch e-mails, protects users against spyware and F-Secure, in a statement. “By protecting them commercial and three 30-second spots, and comes with free 24/7 technical support. online, Barclays is ensuring that, whether on features the song Todo Se Transforma (Every- The agreement with F-Secure allows bank business or not, its customers are given thing Transforms) by Oscar-winning com- Barclays to offer a free service to its online the best possible service.” poser Jorge Drexler. The ads were developed customers that would normally cost over Barclays customers using F-Secure anti- by Chicago-based advertising agency Lápiz. £45 ($83) for two years. virus software will have the option to upgrade The commercials will run until the end of A number of banks around the world to F-Secure’s flagship Internet Security prod- the year in key markets for the bank, includ- offer reduced rates on anti-virus software: uct for a reduced price of £9.95 a year, giving ing New York, Chicago, Phoenix, Tucson, Barclays’ arch UK rival HSBC offers a 30 them additional features including parental Dallas, Houston, San Antonio and El Paso. percent discount on McAfee products, control, a personal firewall, spam filters and Chase has major bank branch networks in for instance (see BMI 179), while in May application control.  most of these markets. The Spanish language ads complement PRODUCT MARKETING Chase’s new general-market advertising campaign, which also launched in May. A green home from Westpac The general-market ads will air in TV markets nationally in the first country- wide advertising campaign since all 1,900 Australia’s Westpac has further emphasised ■ DISCOUNT RATES Bank One branches were rebranded Chase its ‘green’ credentials (see cover story, BMI Selected offers via Westpac’s EcoNomical (see BMI 187). Branches in Michigan and 187) by launching a new environmental ini- Living Program Florida were rebranded in April, completing tiative for its retail customers. a year-long process that brought together Called the EcoNomical Living Program, Supplier Category Product offering 2,600 bank branches in 17 states under the the marketing drive offers Westpac’s mort- Solarhart Solar hot water A$400 cash rebate Chase brand. gage customers discounts on a number of systems The Spanish market continues to attract eco-friendly products and services for their Origin Solar electricity A$500 cash rebate US banks. Chase, for instance, also has bilin- homes (see table). The programme was Energy systems gual ATMs, Spanish-language brochures, launched at a special function on World and multilingual bankers and tellers. Fletcher Insulation A$75 cash rebate Environment Day, 5 June. Insulation Rival institution Wachovia recently The EcoNomical Living Program voucher (Insulco) announced that more than 30,000 custom- booklet entitles customers to discounts on ers have signed up to receive bank state- Tankmasta Rainwater tanks 10% discount a range of products such as solar hot water ments and statement inserts in Spanish since heaters, insulation, solar electricity, rain Climate Green power 10% discount Wachovia introduced this service in October Friendly water tanks, green electricity, and compost- 2005. ing and recycling products. NECO Energy efficient 10% discount In March, MetLife, the largest US insurer, Westpac director Carolyn Hewson said: lighting and launched its first Spanish-language website. water saving “Westpac has spent a significant amount products The company found that Spanish-language of time exploring potential ‘green’ product sites are the preferred channel among His- Source: Westpac opportunities. We didn’t want to create a panic online users: 69 percent of Spanish stand-alone green product; rather we want to The voucher book, which offers around speakers visit sites in Spanish to buy and ensure that each and every mortgage offered A$1,200 ($890) in discounts, also details research products, and 49 percent are more by Westpac from now on gives our customers various ways in which the bank’s customers likely to buy from a Spanish language site the opportunity to be green.” can cut their greenhouse gas emissions.  when shopping online (see BMI 188). 

DIRECT BANKING LOYALTY PROGRAMMES UK consumers return to traditional Lloyds TSB launches cardless UK loyalty financial service providers programme

Online financial service providers in the UK ket trends provide lessons for the rest of the are losing ground in the savings market, financial services market. Its findings suggest Lloyds TSB, the UK’s fifth-largest retail bank, according to research conducted by market that consumers who are less willing to engage has launched a cardless reward programme research group GfK NOP. For the first time in online financial services are prepared to targeting UK sports – in particular, football in five years, more online savings accounts overcome their resistance to the channel if it – fans. were opened with traditional providers (69 means a better return on their money. The concept has been developed by Lloyds percent) than purely online providers (31 “It is clear that traditional players reversed TSB’s Cardnet card acceptance service, a joint percent) during 2005. the flow of savings money to online-only venture between Lloyds TSB and US-based GfK NOP’s findings suggest that a nar- players by becoming more price competi- First Data, the world’s largest card processor. rowing of price differences has resulted in tive [and have traded] on the multichannel, Cardnet has teamed up with UK-based com- consumers taking comfort in the benefits good service and value message to win busi- pany Reward, one of Europe’s largest sports of the multichannel approach – reinforcing ness back,” said GfK NOP. “The remote loyalty companies, in a promotion designed the trend for the massive branch building providers will have to work hard to keep to reward supporters for the loyalty they programmes many banks are now under customers.” show to the football club they follow. taking. The results are in contrast to May’s com- Credit and debit card customers who reg- Additionally, the research revealed that 39 Score US survey of online financial services ister for the service will not be required to percent of the 3 million consumers who con- (see BMI 189), which showed that nearly carry a plastic loyalty card to collect reward duct their financial services online say that 40 million people logged into their online points. To collect points, cardholders reg- the internet is not their preferred method, but accounts during Q4 2005, an increase of 27 ister their payment card details with their that they tolerate an online service in order to percent from Q4 2004 – though it did point favourite football club and purchase goods receive a cheaper product. out that growth in online banking adoption wherever they see the Reward logo at a par- An additional 500,000 people are even is slowing. ticipating Cardnet merchant. The points are more sceptical, stating that while they active- The big story in 2005, stated comScore, automatically collected when the transaction ly bank online, they are unhappy doing so. was the growth of the online, high-interest is processed. GfK NOP asserts that these savings mar- savings market in the US.  For every £1 ($1.80) spent at participating retailers, cardholders can collect between one CARD MARKETING and 20 points. Points can then be redeemed with the football club for a range of rewards, Amex ends UK balance offers such as a half-time penalty shoot-outs with players, signed memorabilia or a season American Express (Amex) has announced balance transfers for existing cardmembers,” ticket. that it will no longer be offering balance a spokeswoman for Amex told BMI. “We are Kevin Coles, head of business enterprise transfer promotions to new card customers focusing our efforts on attracting customers at Cardnet, said: “This is a new and excit- in the UK. who primarily want to take advantage of our ing development in the way customers are The debt-shifting facility, an established reward schemes, such as Nectar loyalty points rewarded, giving them something of unique marketing tactic in the UK, permits cus- and MoneyBack, and benefit from these.” value that money cannot buy. The new proc- tomers to transfer a higher interest credit The most recent Morgan Stanley Card ess also avoids slowing down the payment card balance onto a card which has a lower Index concluded that the days of 0 percent process at the point of sale.” interest rate – though the process has been credit card deals are coming to an end, fol- The loyalty scheme is initially being trialled criticised over the past year for encouraging lowing a trend of credit card customers with Scottish football club Aberdeen at the end a lack of loyalty, turning cardholders who favouring long-term low-rate deals. of June, but will be extended to other clubs frequently shop around into little more than Special introductory offers including 0 per- throughout the UK in August. UK football so-called ‘rate tarts’. cent balance transfers can still be found in the clubs already signed up include Birmingham, The decision by Amex to abandon the bal- UK market, notably from Bank of America- Portsmouth, Manchester City, Watford and 22 ance transfer option for new customers may owned MBNA and Capital One. smaller clubs in the Conference League. be an early sign that card firms are losing Research by online comparison website Reward has established a network of patience with card-switchers who move debt uSwitch.com in June said that there were strategic retail partners including Dixons, to avoid paying interest. The balance transfer 40 balance transfer deals still available in The Link, The Automobile Association and offers being withdrawn for new customers the UK, the best being HBOS’s Intelligent Tesco.com, the UK’s largest grocery home include the Nectar Amex card which offered Finance 4.95 percent life of balance offer. shopping service. a rate of 5.9 percent life of balance and the A PricewaterhouseCoopers study of the Gavin Dein, CEO at Reward, said: “Retail- Blue Amex card which offered a 6.9 percent UK consumer credit card market, Precious ers who understand the passion that sports rate life of balance. Plastic 2006, estimates a loss of £600 mil- teams generate and the buying power of their “American Express will no longer be offer- lion ($1 billion) in 2005 for UK card issuers fans now have the opportunity to attract new ing balance transfers for new customers from attributable to heavily marketed cheap credit and loyal customers, [and encourage] their 13 June. However, we will continue to offer card offers.  existing shoppers to shop more often.” 

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Packaging the mass market

South Africa’s Absa has developed a packaged banking product, FlexiSelect, aided by UK parent Barclays. The group is marketing the account at the mass market, claiming FlexiSelect will usher millions of South Africans into the ﬁnancial mainstream. Stafford Thomas reports from Cape Town

bsa, South Africa’s second-largest Among FlexiSelect offerings previously not to be seen. “It will not be an easy product to retail bank, is targeting the country’s available are overdrafts, mortgages, credit market,” conceded van Vliet. significant mass market with a new, cards and vehicle finance. Access to these serv- Apackaged banking product akin to ices will be based on an evaluation of a cus- Emergency finance the Additions range of bundled accounts that tomer’s “savings behaviour”, said van Vliet. Financial literacy constraints are among the its parent Barclays has established in the UK Loan facilities would, for example, start challenges Absa faces. Many of FlexiSelect’s retail market (see cover story, BMI 180). at the micro-lending level where, she said, offerings, particularly fixed deposit savings, Speaking to BMI, Sonja van Vliet, Absa’s Absa’s interest rates are the “market’s low- compete with entrenched social traditions, the Flexi Banking Services general manager, est”. At present, Absa’s rates range from 25 most popular of which are burial societies and emphasised that FlexiSelect is not targeting percent to 38 percent per year, though the aim stokvels (savings clubs), that evolved out of the unbanked. “It is aimed at the banked, is to reduce these to the upper end of normal a need for emergency finance. In both, mem- low-income mass market that the industry credit advances – about 18.5 percent. Respon- bers contribute money in return for access to has viewed as a globular mass with possible sible management of a FlexiSelect account funds. Finmark’s study found that 39 percent potential in the future.” could also entitle a customer to a maximum of fully banked, low-income earners belong to Van Vliet said that banks had failed to grasp ZAR2,000 overdraft facility for “emergency a stokvel and 22 percent to a burial society. that, correctly approached, the mass market needs”, said van Vliet, and for some a credit FlexiSelect’s initial target market will be offers great potential. This was highlighted card could be “a potential objective”. Absa’s existing client base. This contains by a study started two years ago by Finmark about 600,000 potential customers, around Trust, a non-profit organisation. Van Vliet Cross-selling platforms one-third of South Africa’s total banked, said she was part of the Finmark team that Absa will also use FlexiSelect as a cross- lower income market, said van Vliet. undertook a detailed market segmentation selling platform. Again offerings are basic FlexiSelect is likely to face formal competi- exercise and a study of low-income families’ and include household goods insurance with tion in the near future. “All banks are busy uses of, and need for, financial services. limited burglary cover, term life and perma- with their own version,” said Colin Dorian, “The study showed that irrespective of nent disability insurance up to ZAR50,000, managing director of banking consulting income, people’s financial services needs are and hospital insurance plans. firm Insightworx. The catalyst, he added, is universal,” she said. In essence, these needs Another insurance product in FlexiSelect’s the Mzansi Account, which was introduced are transactions, savings, insurance and cred- line-up is one that is a focus of the vast major- in 2004 to provide the most basic banking it. However, in low-income markets afford- ity of low earners: funeral cover. Absa’s offer- facilities to low earners. ability plays a key role, making it unrealistic ing extends to customers and their immediate Dorian, who headed the Banking Associa- to offer what van Vliet describes as an “all or and extended family with cover ranging from tion of South Africa’s team that developed the nothing product”. ZAR6,000 to ZAR10,000. A policy that Mzansi Account, believes the demand on local From this conclusion, FlexiSelect was born. will provide bridging finance in the event of banks to offer more competitive products will The account offers customers who have a a breadwinner’s death is also available. The grow and, in the process, “a lot of downward monthly income of over ZAR2,000 ($300) products are underwritten by Absa. pressure will be put on fees and margins”. a series of options which serve as building Typical of packaged products, Absa has dan- Scope for this pressure is evident in FlexiSe- blocks to create a package of up to 16 finan- gled a number of free services as an attraction. lect. For its pay-per-use option, for example, cial services. In this respect, FlexiSelect differs Worth ZAR22 per month, according to van customers face an industry standard ZAR3 fee radically from all-in-one packaged products Vliet, many have a typical South African slant for the first ZAR100 withdrawn at an ATM such as Barclays’ Additions, said van Vliet. and include emergency private medical evacu- and ZAR0.90 for every ZAR100 thereafter. She added: “The FlexiSelect concept actually ation, access to medical advice by telephone A debit order costs ZAR4.75 and depositing originated prior to Barclays’ acquisition of and a legal assistance helpline. A helpline and cash over the counter costs 1.05 percent of Absa, but they have provided impetus.” free counselling for victims of assault in which the deposit. FlexiSelect’s fixed monthly fee In its most basic form, FlexiSelect is a debit HIV infection is feared are also planned. options range from ZAR55 for five transac- card-based product which offers customers FlexiSelect was introduced to Absa branch tions to ZAR75 for 15 transactions. fixed fee or pay-per-use options for transac- staff in mid-May and, backed by a major Contrast this with a bank in a more devel- tions that can be undertaken in branches, television campaign, launched on 9 June to oped country – Lloyds TSB’s all inclusive, stores or via an ATM, mobile phone or the coincide with the start of the FIFA World UK entry-level Select package at the equiva- internet. This basic account gives access, by Cup. In an intensely football-loving country, lent of ZAR90 a month plus over ZAR250 choice, to other add-on services, some ‘first the campaign, backed by print media and per month in free add-on benefits – and the world’ and others reflecting the unique needs radio advertising, is guaranteed to reach mil- reason Dorian feels banking costs in South of South Africa’s low-income market. lions. Whether it will convince them remains Africa must decline becomes apparent. 

Land of opportunity

Ireland has attracted a signiﬁcant number of skilled and non-skilled immigrants to its booming, ﬂuid economy. AIB has begun to offer a dedicated service for the country’s large Polish community – pitching itself against rival Bank of Ireland which has also picked out this segment as a growth opportunity

ne year after rival Bank of Ireland “Given the scale of this community and our The bank has also used Izabela Chudzicka, started to cater for Ireland’s grow- strong affinity with Poland through our sub- a high-profile, Polish television celebrity, as ing number of Polish, Chinese and sidiary BZWBK [Bank Zachodni WBK], AIB the face of its marketing campaign – in a ORussian immigrants through a dedi- is very well placed to support their needs,” neat twist, Chudzicka used to be employed cated marketing programme centred largely said Clancy. Wroclaw-based BZWBK, in at BZWBK. To support the product launch, on foreign-language staff and product lit- which AIB has a 70.5 percent shareholding, AIB also commissioned market research from erature (see case study, BMI 179), AIB, the had total assets of PLN29.4 billion ($9.2 bil- Irish agency Amárach, which canvassed the country’s largest retail bank, has itself started lion) as of 31 December 2005 and is Poland’s Polish diaspora in Ireland. to aggressively target Ireland’s large Polish fifth-largest bank. community. This relationship will prove extremely A strong growth driver The bank has set up a new Polish service valuable as competition for minority seg- Bank of Ireland, AIB’s largest competitor in desk at its direct banking call centre in Naas, ments hots up. BZWBK has instigated local the country, has also invested heavily in the Ireland, installed Polish-speaking staff in awareness campaigns in Poland flagging immigrant sector as a strong growth driver. 12 branches and started to offer a range of up the new AIB service and the two banks Without giving away specific customer num- marketing material in Polish. It has also set have established promotional internet links. bers, Catriona Brown, segment manager at up a dedicated Polish section on the bank’s BZWBK has also sent staff from Poland to Bank of Ireland, said that the return from its website (www.aib.ie/polska) and, significant- help run AIB’s direct banking desk. foreign language marketing had been “huge- ly, launched an online international payments AIB has supported the launch in Ireland ly successful, especially in terms of feedback remittance service. itself through an extensive advertising and from front line staff”. The latter initiative is particularly central marketing campaign. According to Clancy, The bank has so far placed 40 bilingual to the bank’s plans. Customers who use AIB the bank has targeted three Polish language staff across its branch network (made up internet banking can make international pay- newspapers and magazines in Ireland, as of 280 branches) and operates a six-strong ments of up to €5,000 ($6,297) per day, in well as the digital television channel. It has foreign language helpdesk accessible by tele- Polish zloty, euros and a range of other cur- advertised in the Irish press – in The Evening phones in branches. Brown said that the bank rencies at a price cheaper than the standard Herald, for instance, which runs a regular, has not tailored specific remittance products branch paper system. In 2003, AIB customers eight-page Poland-focused supplement in for this customer segment as it has “similar made almost 6,000 payments to Poland; by English. needs to our overall customer base. [Indeed], 2005 this had risen tenfold to almost 60,000 Bank of Ireland is launching an upgraded payments, according to the bank. ■ GROWTH MARKET online service, outlining further enhance- Polish-speaking staff, contactable through AIB – deposit growth across business ments for the coming month which include in-branch telephones, have been trained to segments, 2005 the development of international payments explain account opening procedures, regis- for all customers.” tration for AIB telephone and internet bank- � �� At the start of June, Bank of Ireland was �� ing, and the bank’s international payments awarded the Retail Banking Excellence facilities. �� Award at the KPMG Financial Services In an interview with BMI, Grainne Clancy, �� Awards 2006 in Ireland, the second year head of customer propositions at AIB, said �� running that the bank has won this category. the move was simply a reaction to Ireland’s Judging criteria included market perform- changing demographics: around 300,000 ance, innovation, customer service, employ- immigrants now live in the country, a figure �� er of choice and corporate responsibility. set to rise to 1 million by 2030. � The judges highlighted the bank’s customer The predominant foreign community is the service initiative – called Changing For You Poles – there are currently around 120,000 liv- � – particularly innovations such as dedicated ing in Ireland – as skilled and manual expatri- � services for migrant workers. ate workers have been drawn to the country’s In its 2005 annual report, AIB said that booming industries. The community is com- its Republic of Ireland unit delivered a prof- plemented by Polish newspapers and other � it increase of 24 percent last year. Its AIB

media (including a dedicated television chan- �� Poland division had a strong year too, as

nel), and established Polish restaurants, pubs �� profits grew by 13 percent: BZWBK said its �� and shops. As in the EU, work permits are not �� customer numbers increased by more than required for Poles working in Ireland. Source: AIB 100,000. 

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The hard sell

Cross-selling, driven by effective technology, has become the most important organic growth strategy for banks, according to a new report. Customer-facing staff and brand awareness are the other key factors, though, surprisingly, banks rank advertising as much less important in the marketing mix

new report from professional serv- ■ CUSTOMER LOYALTY ices firm PricewaterhouseCoopers What are the factors that attract new customers to your organisation? (PwC), entitled Winning the Battle Afor Growth: Building the Customer- Critical Unimportant centric Financial Institution, shows banks Level of importance 1 2 3 4 5 are putting enormous belief in their ability to cross- and up-sell products to both new and Quality of service and staff 67% 26% 6% 0% 0% existing customers. Strong, effective market- Underlying brand strength and awareness 43% 36% 16% 4% 1% ing and branding is also seen to be critical, as Recommendations from existing customers 42% 35% 16% 4% 2% is the role of customer-facing staff. Product or service differentiation 42% 36% 16% 4% 1% Over 250 senior executives in financial Financial performance 20% 37% 22% 11% 8% institutions across the globe were surveyed on the subject of customer-centric growth for Targeted advertising and marketing campaigns 17% 41% 25% 10% 5% the report, which was produced in association Performance of intermediaries 13% 29% 29% 11% 14% with the Economist Intelligence Unit. Product packaging 10% 30% 29% 14% 15% Asked to identify the obstacles standing Special promotional offers 10% 22% 21% 17% 27% in the way of becoming more customer- centric, 48 percent of survey respondents Mass-market ad and marketing campaigns 6% 18% 35% 18% 22% pointed to problems with technology. Many Source: PwC firms are still unable to share customer data across products, business units or customer – “breaking down the technology silos”, as returning to the importance of the quality channels, depriving institutions of a single he put it. of customer-facing staff. Some 65 percent view of the customer and limiting the ability Cross-selling is ranked as the most of respondents said well-trained, responsive to cross-sell effectively. important tool for organic growth over the staff are likely to make their existing cus- Many of the leading financial services next three years in the PwC report (see table tomers spend money with them. Just over groups have been focusing on improving left), and a bank’s existing customer base two-thirds of respondents also said that the technology to maximise cross-group is believed to be the prime target for cross- quality of service and staff would attract new communication. In a recent presentation selling new products and services (see also customers to their organisations. (see page 1), Charles Prince, CEO at Santander, page 9). Geographic expansion However, many institutions have been bet- Citigroup, for instance, put improved into new markets, a traditional strategy for ter at the rhetoric of customer-centricity than group communication via better technology organic growth, was placed fifth in the list. the practice, with 38 percent of respondents as one of the key drivers for his company Sixty-seven percent of people questioned for agreeing that their organisation is structured the PwC report said improving information around products, not customers, and 33 per- ■ GROWTH technology systems is the top strategic cent citing a lack of good information on cus- What are likely to be your organisation’s top priority for the next 12 months as companies tomer satisfaction and expectations. three sources of organic growth over the next aim to retrieve relevant customer data in real- When asked where they had invested three years? Select up to three responses time and analyse customer behaviour in order the most effort over the past three years to to anticipate and meet their needs. improve human capital performance, nearly Existing customer penetration (cross/ 57% 50 percent of survey respondents said they up-selling) with new products/services Quality staff and service had invested the most effort into product and New customer acquisition with existing 52% When asked what factors attract new cus- service training for staff; 43 percent plan to products/services tomers to an organisation, the most popular continue doing this over the next 12 months. Existing customer penetration (cross/ 50% answer was the quality of a bank’s service Jeremy Scott, chairman, global finan- up-selling) with existing products/ and its staff. The underlying brand strength cial services group at PwC, said in a state- services and brand awareness was second, while rec- ment: “Currently, only 11 percent of survey New customer acquisition with new 35% ommendations from existing customers was respondents have a customer service head in products/services a close third. Surprisingly, perhaps, advertis- charge of the customer experience. There is Geographic expansion into new markets 33% ing featured down the list, and mass-market perhaps something to be learned from some Changes in channel and distribution 25% advertising and marketing campaigns ranked of the successful retailers who have grown strategy the least critical (see table above). their profits by putting the customer at the Source: PwC Throughout the survey, respondents kept heart of their operations.” 

Talking to the customer

Spain’s Santander is six months into a comprehensive marketing campaign aimed at growing market share and increasing cross-sell ratios among key customers. The bank has supported the project with a substantial advertising roll-out, including sending personal letters to existing and potential customers

ince the start of the year, Santander, of the campaign in January, Santander said particularly television, plus direct mail and Spain’s largest retail bank, has been that in 2005 it had increased the number of radio, and has placed a significant amount running a comprehensive customer what it calls ‘linked’, or active, customers of marketing material in branches. Of the Sacquisition and cross-sell campaign, by 4 percent, to almost 3 million customers. budget for television, 33 percent has gone to using incentives such as discounted fees to Linked customers have an average number of the dominant broadcaster TVE, 32 percent draw in new and old customers (see BMI 5.17 products and generate annual revenue to Telecinco, 29 percent to Antena 3 TV and 186). The three-year initiative has a simple, of €1,007. In contrast, ‘standard’ customers 6 percent to Television Cuatro – all the main definable, trackable goal: to grow mass indi- have an average of 2.38 products and gener- general television broadcasters. vidual market share by two percentage points ate annual revenue of €297, while so-called Santander has also advertised in most of by the start of 2009. ‘inactive’ clients have an average of 1.48 ppc the major Spanish publications, national and The campaign, called We Want to be Your and revenue of €51. regional, dailies and weeklies, including El País, Bank, has initially targeted Santander’s 2.2 The bank added that mortgages and trans- ABC, La Razón, El Mundo, Expansión, Cinco million retail customers in Spain, looking to actional business have become the primary Días, El Economista, La Gaceta de Negocios raise the number of products per customer drivers of cross-selling, and, on average, and the weekly Actualidad Económica. Tag (ppc) by eliminating fees on a range of serv- customers who have mortgages have seven lines complementing the advertising include ices for people who already hold a Santander products. not only ‘We want to be your bank’ but also mortgage, payroll deposit account, pension ‘We are starting over’ and ‘We are rethinking deposit account or pension plan. Seven commitments everything we do for customers’. Banesto, Grupo Santander’s other Spanish Santander detailed seven commitments for The bank has also made good use of direct brand, is not involved in the campaign and is 2006, driven mainly by the We Want to be mail, arguing that the medium allows it to instead strategically running its own custom- Your Bank campaign. These are: an improve- announce, from one day to the next, that its er acquisition programme (see BMI 182). ment in market share; more cross-selling and fees are being eliminated on a range of servic- At the time of the launch, Santander said linked accounts; an improvement in custom- es. Santander used the direct mail concept to its goal was to become the premier financial er satisfaction indicators; diversified loan its fullest, writing to all 2.2 million custom- institution for retail customers, with a focus growth of over 15 percent; customer funds ers and any potential customers affected by on the quality of service and variety of prod- growth of around 12 percent; improvement the changes detailing what the new campaign ucts. “The We Want to be Your Bank plan is in efficiency of 2 percentage points; and would mean to them. not a campaign product, but a new relation- maintaining credit quality risk. Asked by BMI how the campaign was ship model with no expiry date for current The bank has supported the marketing progressing, Santander said in a statement in and future customers,” said the bank. campaign with a significant advertising blitz, June that “customers as well as employees Under the initiative, Santander has elimi- using the agency McCann for creative work have responded positively”. It added that nated administrative and service fees on cur- and Arena, the local arm of media planning the plan includes not only the elimination of rent and savings accounts, domestic transfers group MPG, for the media execution. fees and the advertising campaign, but also a and money movements within the European Santander has targeted all media channels, new focus on customer service that includes Union up to €50,000 ($63,000), cheque depos- performance objectives and new methods for it and issuance, balance consulta- dealing with customer service issues. tions, movements and cash “This directly addresses withdrawals through all the perception that, as a of the Santander network’s large bank, we aren’t as ATMs, and on the issuance close to our customers as and renewal of debit cards. the local savings banks try Fees, in particular, were to be,” said the bank. proving a bugbear with Span- In its Q1 2006 results, ish consumers, said Santander: Santander reported that it had some 17 percent of complaints recorded a “moderate” increase in 2005 to Banco de España, the in revenues due to the impact of country’s central bank, concerned We Want to be Your Bank, adding fees. The elimination of these fees that a very positive quarter for the would cost Santander €82.5 mil- group as a whole “makes us opti- lion, the bank estimated. mistic about surpassing our initial In a presentation at the launch expectations for the whole year”. 

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Tracking the value of sports sponsorship

Measuring the value and return on investment of sports sponsorship is notoriously hard. BMI talks to Ron Schneier of New York-based Nielsen Ventures about the company’s Sponsorship Scorecard measurement product – a tool which attempts to do just that and more

t is tough, admits Ron Schneier, general the chairman just wanted good tickets and bought by a number of sports teams, leagues manager at Nielsen Ventures, to esti- nice seats, those days are over.” and stadiums – the “sell side”, as Schneier mate the value of sports sponsorship as Based on Nielsen’s established television calls it – but has been less popular on what Ia whole, let alone track the value and advertising and programme tracking tech- he calls the “buy side”, the actual advertis- effectiveness of individual deals. He offers, nology, Sponsorship Scorecard involves ers. Moreover, despite the significant sums of when pushed, an estimate of around $7 bil- digitising televised sports games and using money spent by financial services companies lion for the US. “The main thing is that an ‘decoders’ – human beings – to measure the on sports sponsorship, no banks have yet awful lot of people, an awful lot of advertis- time and placement of all sponsored media. signed up. Major clients include drinks man- ers, spend a great deal on sponsored placed Nielsen Ventures ufacturers Coca- media in the stadiums, whether it’s the US then matches time Cola, PepsiCo and Open or NASCAR, and they have no idea and occurrence to Gatorade. what they’re getting.” the company’s own “We’re predomi- Nielsen Ventures, a division of Dutch local television nantly heavy on media group VNU, saw an opportunity in ratings. the sell side and are the market and launched its Sponsorship “Essentially, what now moving much Scorecard product at the end of 2004. “We you have for the first more aggressively were getting feedback from the US market time, is a currency, into the buy side. that there was very little accountability in a metric,” says Sch- We haven’t done the sports sponsorship arena and that par- neier. “Somebody the best job of talk- ticularly the teams and the leagues felt pres- can say, ‘OK, I paid How do you measure the effectiveness of this? ing to financial sure from their sponsors that they needed to $25 million or $5 services companies demonstrate what [the sponsors] were really million for this sponsorship, I know what I – we have spoken to Wachovia and Bank of getting for the their money,” says Schneier. paid, I can divide my dollars by my televi- America. Bank of America was very close to “The pressure was coming down from the sion impressions and I can look at the cost doing something last year,” he says. CEOs and CFOs, and they were saying to per thousand and how that compares to my Moreover, it is active only in North Amer- the marketing officers ‘Why are you spend- normal, traditional media spend.’” ica, though Schneier says that it is looking to ing $25 million on major league baseball… expand overseas as sports sponsorship con- what am I getting in return!’ The days when Comparative analysis tinues to be a major marketing tool for banks The company has just upgraded Sponsor- in Europe and Asia. “We have been asked ■ CHAMPIONSHIP EVENTS ship Scorecard, rolling out a new tool called about overseas, but we’re looking for more Who got the most impressions? Comparative Analysis on 5 June this year. support before we start the service because The analysis tool, which is based on Spon- the market size has to be big enough – it’s sorship Scorecard, looks to compare the quite expensive. The Formula One people �� top three sponsors in major sporting events have indirectly spoken to us through their (see graph left) and also determine which advertisers but we’re still focused on the US �� in-stadium locations and poster positions [for the time being].” �� provide the greatest number of impressions One area Nielsen Ventures is getting more �� during events. involved in is helping companies design the JPMorgan Chase, the number one spon- best advertising to use in sports stadiums to �� sor of the US Open Men’s Final, for instance, maximise the adverts’ impact on television achieved 162 million impressions per hour audiences. The company is conducting a during the event, while Motorola, the Super trial later this year to test different types of Bowl’s top sponsor, achieved nearly the same advertising hoarding to gauge which work �� at 157 million impressions. In the case of the the best. US Open Men’s Final, JPMorgan Chase’s Schneier says: “Some of the creatives out �� brand appeared on both end court and arena there are terrible. We’re seeing that adver- � stadium ads; however, the end court ad loca- tisers spending huge amounts of money are tion generated more impressions than the thinking about the audience in the stadium �� arena stadium ad (461 million versus 7 mil- and not the much larger television audience. �� lion), according to Schneier. Are you using the right colours, the right Source: Nielsen Ventures To date, Sponsorship Scorecard has been fonts?” 

Planning ahead

Retirement ﬁnancial planning has become a key market for banks across the world. One of the more visible marketing tools major ﬁnancial services companies are now starting to use to increase their knowledge of – and recognition of their brand in – the marketplace is commissioned surveys

f all the segments promising growth of self-sufficiency and a mix of work and tions are “like a piece of Swiss cheese – full of opportunities, one of the most high- leisure. Given a choice, a higher number of holes. Many [people] have accumulated only profile has been the world’s retire- people (36 percent) think their government modest retirement savings, underestimate the Oment financial planning market. should enforce additional private savings, share of their pre-retirement income they are Over the past decade, as equity markets have rather than increase the retirement age (23 likely to need in retirement and have made become volatile and governments and com- percent), raise taxes (12 percent) or reduce no estimate of how much they will need to panies increasingly shift the burden of pen- pensions (12 percent). Nearly one-half (43 live comfortably once they retire.” sion planning onto the individual, financial percent) of individuals worldwide expressed The survey was sponsored by US-based services companies have begun to target reti- a desire to fund their own retirement either Employee Benefit Research Institute and rees and the retirement segment as a lucrative through savings or by working later in life, survey research firm Mathew Greenwald growth market. perhaps part-time. & Associates, and was based on telephone This trend has been flagged up by the The research reveals that individuals in interviews with 1,252 individuals aged 25 increasing number of commissioned surveys most countries want to be primarily self- and over in the US, conducted in January. It by banks on retirement financial planning – sufficient when it comes to funding their found more than two-thirds (68 percent) of research often then used by the banks in their retirement. However, a ‘confidence gap’ exists current workers said they and their spouses marketing and communication, advertising, as one in three people worldwide believe the have accumulated less than $50,000 in retire- product development and forward planning. government should bear their costs in retirement savings. Some 88 percent of workers Indeed, while ‘retirement’ has become a big ment, compared with around just one in five aged 25 to 35 have less than $50,000 saved market for banks, market research and sur- (21 percent) who believe they will. for retirement, compared with 52 percent of veys have become equally visible marketing Harris Interactive also helped Merrill workers aged 55 and older. phenomena. Lynch with what the bank described as its Nearly six in ten current workers (59 per- Citibank, HSBC, Merrill Lynch, Axa and “groundbreaking study that uncovers a star- cent) said they hoped to have a retirement Aviva, five of the world’s largest financial tling disconnect between how Americans standard of living equal to or higher than in institutions, have all recently published sub- and their employers view retirement” – The their working years. However, when current stantial market research on the subject. Merrill Lynch New Retirement Study. Some workers were asked if they had calculated Aviva, the UK’s largest insurance group, 5,111 adults were surveyed across all age how much money they will need to retire for instance, has just rolled out a Retirement ranges and additional sample groups sur- comfortably, nearly six out of ten said no. Index under its Norwich Union brand. The veyed online included affluent people aged In addition, like the HSBC survey, the Norwich Union Retirement Index has been 25 to 70 and 613 sets of spouses aged 25 2006 Retirement Confidence Survey found compiled by the Centre for Economics and to 70. Over 1,000 US companies which have strong support for automatic enrolment in Business Research, one of the UK’s leading 100 employees or more also participated in employee pension plans. About two-thirds of economics consultancies and commentators telephone interviews in January this year. employed workers (69 percent) favour auto- on trends in the UK and global economy. The The Merrill Lynch study concluded, among matic enrolment. About one-half of all work- index tracks changes in pensioners’ incomes many other things, that paying off debt was ers said they received employer-provided and household spending. ranked as the single most important thing to retirement education; of those, almost one- do towards securing a financial future in the third (29 percent) reported modifying their What the world wants coming year (33 percent). This was followed retirement planning as a result of the material HSBC has released details of its second glo- by saving more (21 percent). More than one- they receive. bal retirement study – The HSBC Future of half (53 percent) of the individuals surveyed At the end of April, France’s Axa published Retirement: What the World Wants. In con- were concerned about the amount of debt a huge survey of global retirement trends, junction with research group Harris Interac- in their households, yet most (63 percent) Axa Retirement Scope 2006. The research tive and charity Age Wave, and through a expected to have less debt when they retired involved 6,915 interviews of working peo- newly announced five-year strategic alliance and expected to be eventually debt-free (74 ple and retirees in 11 countries, including the with the Oxford Institute of Ageing, the 2006 percent). US and Japan. Axa itself is investing a great research involved some 21,000 consumers deal in the retirement industry: on 14 June, and 6,000 employers in 20 countries and ter- Like a piece of Swiss cheese the company announced it had entered into ritories, including Brazil, China, Germany, At the start of April, Citigroup released the a definitive agreement with Credit Suisse to India, Indonesia, Japan, Russia and the US. findings of its 2006 Retirement Confidence acquire its Winterthur Life unit for CHF12.3 The UK bank says that, overall, the study Survey, the 16th such survey on sentiment billion ($10 billion), a move which will lead concludes that people want to abandon in the US. The 2006 survey, said the bank, to Axa becoming an even stronger player in traditional models of retirement in favour showed many Americans’ retirement expecta- the global pensions market. 

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SPORTS SPONSORSHIP and vary the sum saved from information delivery methods runner-up prizes of THB50,000. Barclays extends golf month to month. However, if are also being considered, spe- In 2005, Bangkok Bank’s pro- they make a withdrawal or miss cifically websites. motional offering to new card sponsorship to Asia a payment, the funds cannot be customers offered the chance to replaced. BRANCH MARKETING win one of 15 Honda Jazz cars Barclays, the UK’s third-largest The regular savings market in ABN AMRO opens (see BMI 182). bank, has increased its support the UK has become very com- lounge at Schipol of world golf by signing a five- petitive as banks look to attract Airport COMPETITIONS year agreement to become the new customers and funds using Groupe Caisse title sponsor of the Singapore headline-grabbing interest rates. d’Epargne sponsors Open. It is Singapore’s largest HSBC’s regular savings account, ABN AMRO, the second-largest prize for investigative sponsorship agreement, with an by comparison, also offers 8 per- bank by assets in the Nether- journalism initial annual prize fund of $3 cent on monthly savings up to lands, has opened a lounge at million increasing to $5 million £250 and is an option for new and Amsterdam’s Schipol Airport, by 2008. existing account holders – but the designed to cater for the needs of Groupe Caisse d’Epargne, the The deal marks the company’s rate is for a 12-month period only the bank’s Preferred Banking cli- largest French co-operative, has first major sports sponsorship and withdrawals are not permit- ents (defined as customers who teamed up with French journal- in Asia. Barclays has made golf ted. HBOS’s Children’s Regular have investable assets of at least ism school the Centre de Forma- a key part of its international Saver pays 10 percent, fixed for €50,000 and/or a monthly net tion des Journalistes to launch a sports sponsorship programme, one year, for deposits between household income of €5,000). prize for investigative journal- as shown by the six-year (2005 £10 and £100 each month. Since the bank introduced the ism. The Prix International de to 2010) sponsorship of the Preferred Banking concept in late l’enquête CFJ-Groupe Caisse Barclays Classic in the US and its AFFINITY MARKETING 2004, approximately 70 ABN d’Epargne will form part of the promotion of the Barclays Scot- MUFJ and JR East AMRO branches throughout the journalism school’s 60th birth- tish Open since 2002. launch co-venture Netherlands have opened Pre- day celebrations. The Singapore Open ran from ferred Banking Lounges similar Separate categories for the 1961 until 2001, but a lack of Mitsubishi UFJ (MUFJ), Japan’s to the new lounge at Schipol. written word and audio-visual sponsorship support resulted in largest bank, and East Japan Customers can conduct busi- work have been created and both the tournament not being held Railway Company (JR East) ness or hold a preflight meeting awards offer a €3,000 ($3,800) between 2002 and 2004. The have reached an agreement on in a designated conference room first prize. Entries are invited tournament was revived in 2005 the provision of financial services within the Schipol lounge. The from journalists aged under 40 and the Barclays deal provides a to JR East’s Holiday for Seniors new facility brings to nine the who are working in the French major boost for the organisers, Club, a JR East club for senior number of ABN AMRO branch- language. which will market the event as citizens. es at the airport. the Major of Asia. The 2006 MUFJ group companies have CUSTOMER COMPETITIONS Singapore Open will be com- already held seminars on asset PROMOTIONAL CAMPAIGNS Scotiabank targets peting with the Canadian Open management and contributed Bangkok Bank mortgage market and – which has a $5 million prize columns on financial topics to launches biggest-ever launches competition fund and runs from 7 to 10 Sep- JR East’s members-only maga- promotion tember – to attract the world’s zine Holiday for Adults. top golfers. Following the new agreement, Scotiabank, Canada’s fourth- MUFJ companies will provide a Bangkok Bank, Thailand’s larg- largest bank by assets, which PRODUCT INNOVATION number of new and preferential est bank in terms of assets, has has historically marketed itself Lloyds TSB launches privileged services to club mem- launched what it describes as as Canada’s most international ‘no strings attached’ bers, including better rates for its biggest-ever promotion. The bank, has increased its focus on regular savings account Super Term Deposit accounts bank is offering new credit card growing its domestic mortgage which have a term of more than customers the chance to win gold market. Scotiabank is the third- one year and a minimum deposit in a promotion which has a total largest player in the domestic Lloyds TSB, the UK’s fifth- of ¥5 million ($43,500). New prize pool value of THB7.5 mil- mortgage market and has a 17.3 largest retail bank, has launched customers requesting consulting lion ($195,000) during a five- percent share of the market. a ‘no strings attached’ regular services for securities at branches month promotional period. The bank has upgraded its savings account. The Lloyds TSB of Mitsubishi UFJ Securities will Every time a new Bangkok www.findthemoney.scotiabank. Monthly Saver account will pay be presented with complementary Bank credit card customer spends com website with a suite of home 8 percent interest on deposits of copies of a book of shareholder over THB1,000 in a single trans- ownership and home finance between £25 ($46) and £250 per privileges (effective start date is action, they will be entered auto- tools, designed, as the bank said, month for two years. scheduled for 1 September). matically into the competition in “to help Canadians manage their The account is available for In a joint statement, the two an initiative designed to maxim- home ownership needs”. new and existing current account companies said they will con- ise use of the card. The web campaign is being holders, and customers have sider broader business tie-ups There will be five draws each supported by the launch of a the option of making a deposit related to the Holiday for Sen- month from June until October competition giving away a 42in of £750 when the account is iors Club in the future aimed at 2006. Each month of the promo- plasma television every day until opened. Customers can access leveraging their respective prod- tion, a first prize of THB1 million the end of July to Canada-based their money whenever they wish ucts, services and expertise. New in gold will be awarded, plus ten customers who visit the site. 

Banking on service

Before Japan’s Mitsubishi UFJ Financial Group can compete effectively with the likes of Citibank and HSBC on the international stage and become a top ﬁve global player, it is looking to cement its domestic retail banking business through a technology-led customer service proposition. Titien Ahmad reports

obuo Kuroyanagi, president of recently said retail banking and better cus- ■ GROWTH PLANS Mitsubishi UFJ Financial Group tomer marketing were key factors in its MUFJ – profit by business segment, 2009 (MUFJ), has said his intention is to goal to become the “bank of choice” in its make MUFJ one of the world’s top markets. Shinsei Bank, the 14th-largest in N Trust assets: five banks in terms of market value by March terms of assets, is using innovative market- Treasury: 2%-4% 2009 – and he believes the path to expansion ing, branding and products to rapidly gain c.5% Corporate lies in retail. Retail currently contributes less market share (see Campaign of the Month, Retail: (overseas): than 20 percent of profits, but the target is BMI 183). over 35% c.10% to boost the proportion to 35 percent and In a presentation at VRL’s Retail Finance increase retail net operating profit by around China conference in Shanghai in early May, 2.5 times by March 2009. Jun Kaneda, chief manager of the marketing Kuroyanagi believes MUFJ, the world’s strategy department at MUFJ, said: “It is only largest bank by assets, will have to be a strong the beginning of our long journey because the local bank which has a large domestic fran- biggest bank does not mean the most popular chise before it can expand overseas. MUFJ, or supported bank. The challenge for retail formed from a merger between Bank of banking is how we can efficiently treat our Tokyo-Mitsubishi and UFJ Bank in 2005 and customers in the right way to minimise our formally launched on 1 October, inherited a cost and maximise customer satisfaction. Corporate (domestic): strong retail banking business through UFJ. Otherwise, there will be a vicious circle of c.40%-45% Competition for retail business, however, customer dissatisfaction and problems with Source: MUFJ is hardening in Japan. Mizuho, the second- the bank.” largest player in the market, has implement- A customer survey commissioned by MUFJ equipped with a scanner to scan identifica- ed a bank-wide rewards system through its found that bank customers in Japan were tion documents of customers and a fax to Mizuho Mileage Club programme, a plat- dissatisfied with the short opening hours of send through applications. form for the bank to increase cross-selling bank branches and long waiting times. They The volume of ACM transactions is com- by offering bonus points for transactions also felt that going to the bank was a tedious parable to about 1,000 tellers at the counter with the bank. Mizuho has almost doubled affair (see graph left). The bank, on the other and about one in four ACM users transact its sales staff from 364 in 2005 to 600 in hand, was “caught up with clerical work outside office hours. Levels of use have been early 2006 and has said it will continue to at the counter and there was inefficient use found to increase outside of office hours, offer housing loan consultations during non- of human resources at the branches”, said increasing the profile of the UFJ24 project. business hours. Kaneda. The solution for the bank, he said, “ATMs and ACMs cover most of the cleri- Resona, the country’s fourth-largest bank, was to “expand business hours as far as pos- cal work so tellers can concentrate on sales sible with minimum increase in labour cost, activities,” said Kaneda. “We are currently ■ CUSTOMER SURVEY using technology”. in the process of a trial of Super Convenient Customers’ dissatisfaction with banks The UFJ24 project, started in 2003 by Branch by installing ACMs in ATM corners UFJ and now being used by MUFJ, seeks to of specific branches.” �� enhance the efficiency of tellers and increase customer acquisition by expanding the chan- Revitalisation plan �� nel reach and operating hours of the bank. MUFJ published the first update of its Revi- �� UFJ24 involved the launch of 24/7 opera- talisation Plan as a merged entity in February �� tional ATMs, 24/7 call centres and the roll- this year. The plan, which stated that retail �� out of over 500 automated consulting and banking is a fundamental driver for the bank contract machines (ACMs). (see graph above), said that the group’s retail �� Described as a remote-controlled bank business places its “highest priority” on the �� counter, the machine offers a variety of two aims of enhancing customer satisfaction �� functions which ATMs do not have, such and maximising profit. �� as new account opening, foreign remittance The plan said that MUFJ intends to build �� and home mortgage applications, according a world-class retail brand through leveraging to Kaneda. ACMs have a videophone, so the highly complementary nature of the � �� customers can see, hear and communicate former Bank of Tokyo-Mitsubishi and UFJ Source: MUFJ with bank staff. In addition, the machine is groups. 

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BCB goes on the deposit chase

Bumiputra Commerce Bank (BCB) is Malaysia’s second-largest ﬁnancial services group after Maybank. Looking to cut the latter’s lead, BCB has rolled out a number of marketing initiatives this year and is looking to expand its product range, turn branches into sales centres and focus more on segmentation

umiputra Commerce Bank (BCB) is encouraging more high net worth customers terms of current accounts, it opens about battling it out in a domestic market to deposit with the bank. “We have enhanced 1,000 new accounts which have an average dominated by Maybank, the coun- this campaign further where we now include balance of MYR10,000 monthly. The bank Btry’s largest financial services group. 12-month fixed deposits in this special pro- has reportedly spent MYR3 million on pro- BCB, formed via various mergers and acqui- motion. This means we will pay Tier 1 rates motions, schemes and advertising to increase sitions over the past decade (most recently up to 3.7 percent for any amounts placed in its retail deposits. the merger with Commerce International individual names in BCB for 12 months or The goal for BCB is to increase the bank’s Merchant Bank [CIMB] in 2005), has rolled less.” market share in retail banking to 10.0 per- out numerous marketing and product ini- Marketing campaigns offering free gifts cent by the end of 2006, from 6.5 to 7.0 per- tiatives so far in 2006 as it looks to cut into when new accounts are opened have been in cent currently. Retail deposits are targeted to Maybank’s lead. place to reward customers depositing money increase to MYR15 billion from the MYR13 Raising the savings rates on key products at the bank. The most recent programme billion that makes up 20 percent of its total has been an important strategy this year. At was the Dream Deposits campaign designed deposit base. “We are targeting to grow our the end of May, the bank announced a range to increase the amount deposited with BCB retail deposits by over 15 percent this year. of increases on its fixed deposits for all ten- among current customers. BCB has 6 percent share of the retail deposit ures over 12 months, for instance. The bank’s The Dream Deposit campaign follows the market,” said England. new rates range from 3.7 percent per annum recently concluded BCB Cash Attack con- for 13 months, up to 4.8 percent per annum test which ran for six months from Septem- Branch network for a five-year tenure. Peter England, BCB ber 2005. Three winners of MYR500 were Other elements of its business the bank has head of retail banking, said the adjustment declared each week and the winners were been looking to improve include simplifying of rates was in line with the bank’s strategy to then eligible to win MYR30,000 provided the account opening process and extend- continuously review its product range. “We they maintain a specific account balance during branch opening hours, part of a range are constantly monitoring the changes in the ing the six months of the contest period. of changes focused largely on the bank’s markets and felt there was an opportunity to Customers had to submit an entry form branch network. The bank has extended the raise our longer term rates significantly.” with the original deposit or ATM slip and opening hours of its branches, for instance, For retail customers, England noted that, were required to answer two questions about to 4.45pm instead of 4pm, and service kiosks at 3.3 percent, the bank also has the best BCB. They then had to submit their most cre- located at shopping complexes now operate one-month rate in the market. “Now with ative depiction of the phrase ‘Show me the seven days a week from 11am to 7pm. BCB the new two-year promotional rate, custom- money’. currently has 233 branches throughout the ers can enjoy the highest rate in the market The bank’s latest branding initiative, country, 37 service kiosks, 892 ATMs, 148 for longer term deposits.” which ran between 4 and 16 May, involved it cash deposit machines, 220 cheque deposit putting its brand to the biggest Asian debat- terminals (CDTs) and 38 CDTs which have Dream Deposits ing championship. The All Asians Inter- a scanner. All retail fixed deposits also qualify for BCB’s Varsity Debating Championship boasted According to its 2005 annual report, BCB high-profile Dream Deposits campaign, over 400 participants from 45 higher learn- achieved profit before tax of MYR548.8 through which customers stand to win a ing institutes from countries such as China, million compared with MYR304.4 million weekly prize of a 42in Panasonic plasma tel- India, Thailand, Indonesia, the Philippines, in 2004, an increase of 80.3 percent. The evision and be entered into the draw for the South Korea and Japan. bank’s profit before tax rose 219 percent to grand prize of a Mercedes E200K. close at MYR572.7 million, compared with Another recent launch was the No Tiers Increasing share of wallet MYR179.5 million in 2004. campaign. Previously, depositors were dif- As the second-largest bank in Malaysia Writing in the report, Tan Sri Dato’ Seri ferentiated by their nationality and deposit in terms of assets, BCB has over 4 million Haidar Mohamed Nor, the group’s chair- amounts. Tier 2 interest rates, for instance, customers and the challenge for the bank is man, stressed the need to improve the cross- were applicable to Malaysians who had increasing its wallet share of its existing cus- selling capability of the group. He said that, deposits of over MYR1 million ($27,231) tomers. England has said the bank is more going forward, one of BCB’s priorities is and to foreigners for any amount of fixed focused on building relationships with its to continue to focus on retail banking by deposit. According to England, there are no existing customers than getting large num- enhancing its risk management systems, cre- longer limits on the amounts that an indi- bers of people to make up its customer base. ating segmented business models for target vidual customer can place in fixed deposits BCB opens about 40,000 new sav- customer segments, growing its credit card to qualify for Tier 1 rates. ings accounts which have an average of portfolio and converting branches to sales This move, added England, is targeted at MYR1,000 per account every month. In and service units. 

BRANDING INDEX AFRICA AND THE MIDDLE EAST Europe’s trusted financial brands Absa 6 ASIA-PACIFIC Bangkok Bank 12 Generally speaking, European consumers and October 2005, and covered 20 different Bumiputra Commerce Bank 14 Maybank 14 value nationality, mutuality and/or state par- industries, including cars, cosmetics, kitchen Mitsubishi UFJ 12, 13 ticipation, and market size when judging the appliances and mobile phones, as well as United Overseas Bank 3 trustworthiness of banks, according to the banks, insurance companies and credit card Westpac 4 sixth annual survey of Europe’s most trust- associations. EUROPE ABN AMRO 12 ed brands by the magazine Reader’s Digest. A total of 25,434 questionnaires was ana- AIB 7 National institutions such as Crédit Agricole, lysed and 317,339 votes were cast. Overall, Aviva 11 PKO, Rabobank, Raiffeisen and Sberbank top 112,129 different brand names (or variations Axa 11 individual country banking tables, as do insur- on a brand name) were mentioned. Respond- Banesto 9 ers such as Axa and Allianz (see table below). ents were drawn from the publication’s cus- Bank of Ireland 7 Bank Zachodni WBK 7 The biggest surprise, perhaps, is the tomer database of 4.5 million homes. Barclays 4, 12 UK: Lloyds TSB, the UK’s fifth-largest BBVA 3, 15 retail player and a bank long believed to Brand trust and choice Caixa Geral de Depósitos 15 be a potential takeover target as it strug- The survey’s primary objective was to find Česká sporitelna 15 Crédit Agricole 15 gles to compete with larger rivals, such as out which brands Europeans trust the most Experian-Scorex 1-2 HSBC, Barclays and HBOS, was voted the and to investigate what trust means in terms Fortis 15 most trusted bank brand in the UK. Other of brand choice. Brands were rated based F-Secure 4 similar surveys have either put HSBC (see upon quality, value, image and understand- Groupe Caisse d’Epargne 12 BMI 179, and BMI 181) or Nationwide, ing of customer needs, as well as the impor- HBOS 5, 12 HSBC 1-2, 3, 11, 12 the UK’s largest building society, ahead (see tance of trust when making a purchase. The Lloyds TSB 5, 12, 15 BMI 189). June 2006 editions of Reader’s Digest maga- McCann 9 This is the sixth annual survey by Read- zine across Europe carried a multi-page sec- Nectar 5 er’s Digest, which describes itself as the tion summarising the results of the survey, NPG 9 OKO 15 magazine with the largest circulation in the meaning the winning brands received good OTP 15 world. Research took place in 14 European editorial coverage. PKO BP 15 countries, including countries in Central Reader’s Digest said that achieving ‘trusted Rabobank 15 and Eastern Europe, between September brand’ status is especially valuable to brands Raiffeisen 15 because it “reflects the opinions and percep- Reward 5 ■ Santander 9 BRAND STRENGTH tions of the general public. It is not a measure Sberbank 15 Winning financial brands of buying habits, advertising investment or smile 3 peer group judgement. Without any prompt VNU 10 Country Bank Insurer Credit card whatsoever, consumers in 14 different coun- NORTH AMERICA AND THE CARIBBEAN American Express 5 Austria Raiffeisen- Uniqa Visa tries nominate the brands that they person- Bank of America 3, 5, 10 bank ally trust the most across a range of different Capital One 5 Belgium Fortis Axa Visa product/service categories.” CGI/AMS 2 In terms of credit cards, Visa has again Citigroup 1, 8, 10, 11 Czech Česká Česká Visa dominated the category. Across Europe, eBay 3 Republic sporitelna pojišťovna Fair Isaac 1-2 Visa, which gained an average of 44 percent Finland OKO Bank Tapiola Visa First Data 5 of the votes, is considered by consumers to be GE Consumer Finance 3 France Crédit Axa Visa the most trusted credit card brand in 13 out JPMorgan Chase 4, 10 Agricole of 14 countries. Merrill Lynch 11 Germany Sparkassen Allianz Visa MetLife 4 The credit card category has been included Morgan Stanley 5 Hungary OTP Allianz MasterCard in the past four surveys and has been won by Nielsen Ventures 10 Hungaria Visa each time. Scotiabank 12 Smith Barney 3 Netherlands Rabobank Interpolis Visa In Europe, there are over 302 million Visa debit, credit and commercial cards. In the 12 Wachovia 4, 10 Poland PKO BP PZU Visa months ended December 2005, those cards Portugal Caixa Fidelidade Visa were used to make purchases and cash with- Geral de Depósitos drawals to the value of over €1.13 trillion ($1.43 trillion). Russia Sberbank Ross- Visa Finland’s most trusted bank, Helsinki- gosstrakh based Osuuspankki, officially rebranded at Spain BBVA Mapfre Visa the start of June – its full name, OKO Osuus- DID YOU KNOW? Switzerland Raiffeisen Mobiliar Visa pankkien Keskuspankki Oyj, has been con- Your subscription to this news- Schweiz densed to OKO Bank. The group comprises letter entitles you to access its UK Lloyds TSB Norwich Visa 236 independent member co-operative banks five-year online archive. Go to Union and its statutory central institution, OP Bank www.vrlpublishing.com Source: Reader’s Digest Trusted Brands Survey 2006 Group Central Cooperative. 

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