Global Affinity AFFINITY BANKING Finance Club

AFFINITY INSURANCE QUARTER 3 2018

BANCASSURANCE Global Affinity AFFINITY BANKING Finance Club

Finaccord’s newsletter about affinity financial services worldwide Welcome back to your Club! As has been the case in recent quarters, affinity and partnership marketing deals with a strong digital slant are especially prominent in this latest round-up.

Examples include Onlia (a personal lines insurance joint venture set up by Achmea and Fairfax Financial in Canada), the tie of Friendsur- ance with Ottonova (for digital health insurance in Germany), and the mandate acquired by Urgent.ly with Uber in the US for on- demand, app-based road assistance (complementing the launch of a co-branded debit card for Uber drivers issued by GoBank).

Another notable initiative is an online platform for vehicle owners in China (incorporating motor insurance, vehicle finance and other related services) established by two giants of the country’s financial services sector, namely ICBC and PICC. In a similar vein, Allianz and Deutsche Bank are working in Germany with Auto1, an online marketplace that matches individuals wishing to sell used cars to dealerships, to launch a new venture called Auto1 Fintech. Again, this has a focus on insurance and finance products but this time with the vehicle dealerships as the target customers.

Elsewhere, China-based payment brand UnionPay continues to take steps to establish itself at an international level. Its latest ventures include the launch of a co-branded credit card with Ctrip and Sumi- tomo Mitsui in Japan plus various other initiatives to boost issuance and acceptance of its cards in geographies as diverse as Belarus, Can- ada, France, Panama, Serbia, Spain, Uganda and Ukraine.

Alan Leach, Director [email protected]

For our published reports, news and more please visit www.finaccord.com Global Affinity Finance Club Table of contents

Affinity Insurance Gras Savoye links with online Moderna Försäkringar wins man- broker to target French travel date from Swedish car sharing plat- ASSISTANCE 5 agents 6 form 8

Allianz Partners acquires Spain- HOUSEHOLD INSURANCE 7 Direct Line Group sets up new based assistance and claims man- partnership with Volkswagen In- agement specialist 5 surance Services 8 Signal Iduna collaborates with ELEMENT for household cover esure sells discounted motor in- Gothaer boosts smart home of- for Borussia Dortmund fans 7 fering through partnership with surance through Blue Light Card

Grohe 5 Scheme 8 LIFE, HEALTH AND CREDI- ARAG seals agreement with in- TOR INSURANCE 7 NICHE INSURANCE 9 surtech firm for home emergency and legal protection cover 5 Aetna International ties with Hu- Allianz ties with French housing manis for multiple health insurance rental platform for cover aimed at initiatives 7 Uber selects Urgent.ly for on- students 9 demand, app-based road assis- Bupa teams up with Babylon for tance 5 DAS wins legal protection insur- digital healthcare services 7 ance mandate with Legal & Gen- eral 9 Europ Assistance secures road as- Friendsurance collaborates with sistance tie with LeasePlan in Ita- Ottonova, a provider of digital Moderna Försäkringar promotes ly… 5 health insurance 7 pregnancy and childbirth insurance via app developer 9 … and commences road assistance Sumitomo Life launches Vitality- partnership with Renault in Portu- branded health insurance module PRODUCT WARRANTIES / gal 6 in Japan 7 INSURANCE 9

International SOS subsidiary pro- APRIL works with French real Allianz Partners renews extended vides risk management and assis- estate website for mortgage- warranty partnership with Mazda in tance services to Luxaviation 6 related creditor insurance 8 the UK 9

COMMERCIAL INSURANCE 6 AXA gains opportunity to dis- Europ Assistance seals product tribute insurance to members of insurance tie with retailer of Mitsui Sumitomo secures com- Catalan Tennis Federation 8 flooring products in Poland 9 mercial insurance partners in Kenya and Mozambique 6 MOTOR INSURANCE 8 TRAVEL INSURANCE 9

ARAG works with Mercia Un- Allianz introduces insurance for Allianz Global Assistance makes derwriting for commercial legal customers of Wikicampers… 8 travel cover available to users of expenses insurance 6 Brisbane Airport website 9 … and crafts affinity product for Streetscooter in Germany 8

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China Taiping launches travel Nobis Filo Diretto and Extrabanca Intesa Sanpaolo gains access to insurance product on Ctrip.com combine to devise product for non Italian post office distribution net- 10 -EU citizens 12 work 14

Cover-More expands in Latin ANZ divests New Zealand life AUTOMOTIVE FINANCE 14 America through multi-country insurance subsidiary to Cigna 12 acquisition 10 FCA Bank becomes accredited MOTOR INSURANCE 12 provider of finance for Aston ERV augments presence in north- Martin in Europe… 14 ern Europe through partnership ICBC and PICC develop online with KILROY International 10 platform for car owners 12 … and sources leasing products from LeasePlan in selected coun- HanseMerkur reinforces travel in- tries 14 surance links in Germany 10 GENERAL 12 Jaguar Land Rover and motor GENERAL 10 BNP Paribas creates non-life in- finance arm of Lloyds Banking surance joint venture with Mat- Group continue to collaborate 14 Generali increases ownership mut 12 stake in joint ventures with Fu- Allianz and Deutsche Bank tie ture Group in India 10 UniCredit concludes strategic with Auto1 for new fintech joint bancassurance agreements with venture in Germany 14 Achmea and Fairfax Financial Allianz and Generali 12 combine for digital personal lines Orient Corporation backs vehicle joint venture in Canada 11 Erste Group extends partnership finance product offered by Dai- with Vienna Insurance Group 13 san Bank 15 China Life forges strategic agreements with JD.com and Tencent Affinity Banking CO-BRANDED CARDS 15 11 AFFINITY BANKING AND American Express rolls out new co Bancassurance CARDS 13 -branded card with Marriott hotel group 15 HOUSEHOLD INSURANCE Mastercard and Unilever expedite 11 access to credit for entrepreneurs GoBank and Uber launch new co- branded Visa debit card 15 Legal & General secures house- in Kenya 13 hold insurance partnership with Virgin Atlantic launches affinity Sberbank initiates partnership The Co-operative Bank 11 savings product with Virgin with LUKOIL Group for com- LIFE, HEALTH AND CREDI- Money 13 mercial credit cards 15 TOR INSURANCE 11 Westpac allows home loan cus- UnionPay unveils co-branded Crédit Agricole seals long-term tomers to collect miles with Vir- card in Japan with Ctrip and Su- bancassurance tie with Credito gin Australia loyalty program 13 mitomo Mitsui Card Company Valtellinese 11 15

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JCB ties with CIMB Niaga Bank Visa unveils multiple digital and Toolstation and Travis Perkins and Indosat for co-branded pro- mobile payment initiatives 18 for new co-branded business card gram in Indonesia 16 21 Itaú Unibanco launches Apple Bank of China develops credit Pay and Samsung Pay in Brazil 18 GENERAL card program for Chinese students looking to study abroad 16 Wirecard enables use of China- Alior Bank, Mastercard, Raisin and based payment solutions at Ger- solarisBank work together for CONSUMER FINANCE 16 man department store chain 19 launch of new digital bank 21

Synchrony Financial completes JCB enables use of Google Pay in Finaccord country reports purchase of PayPal’s online con- Japan and Apple Pay in Taiwan sumer credit program in the US 19 Finaccord publishes a variety of 16 reports about the following coun- Google Pay introduced by Aeon tries: Australia; Austria; Belgium; Klarna secures three new finance Credit Service in Japan 19 Brazil; Canada; Chile; China; Co- relationships with diverse part- lombia; France; Germany; India; ners in the UK… 16 Indonesia; Italy; Japan; Malaysia; PAYMENT CARD ISSUANCE Mexico; Netherlands; Peru; Po- AND ACCEPTANCE 19 … and works with Etsy in Ger- land; Romania; Russia; South Af- many 17 rica; Spain; Switzerland; Turkey; UnionPay rolls out multiple initi- the UK; and the US. Crédit Agricole Consumer Fi- atives to enhance presence in in- nance concludes joint venture ternational markets… 19 Alternatively, to see our full list agreement with Bankia 17 of reports organised by country, … including ones in Canada, with more than 60 countries cov- INTERNATIONAL PAY- Spain and Uganda… 20 ered in total, please visit the MENTS / REMITTANCES 17 search-by-country page of our … with JCB following suit in website at www.finaccord.com/ TransferWise integrates pro- Brazil and Russia 20 search-by-country.htm. cessing system into Groupe RETAILER CARDS AND FI- BPCE’s mobile banking apps 17 NANCE 20 Western Union embeds services into digital platforms in China, Synchrony Financial converts Russia and the UK 17 Belk’s private-label scheme to Mastercard-branded program 20

MOBILE / ONLINE PAY- MENTS 18 Alliance Data creates private-label card program for Appliances Mastercard broadens use of storefront window technology through Connection 20 partnership with US clothing retailer 18 Barclaycard combines with

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Affinity Insurance News shopping with Grohe will be Uber selects Urgent.ly for on- able to prevent leaks in their demand, app-based road as- ASSISTANCE homes through the additional sistance purchase of two products that it Allianz Partners acquires has developed jointly with Go- In the US, Urgent.ly, a provider Spain-based assistance and thaer, namely a water sensor of on-demand, app-based road claims management special- (‘Grohe Sense’) and a water assistance, has established a ist control system (‘Grohe Sense partnership with Uber, an inter- Guard’). The former triggers an national P2P ride-sharing, taxi In the field of property assis- alarm when its base touches wa- cab, food delivery, bicycle- tance, Allianz Partners has ac- ter and automatically sends a sharing, and transportation net- quired Multiasistencia, a Spain- warning message to the custom- work company, to provide its based company that specialises er’s smartphone. Meanwhile, the drivers with road assistance if in providing assistance services, latter detects cracks in damaged they need it. Specifically, if an including insurance claims man- pipes and automatically brings Uber driver breaks down on the agement, related to both domes- the water supply to a halt. road, they receive live status up- tic and business properties. Cur- dates from Urgent.ly and they rently active in Brazil, France, ARAG seals agreement with can watch in real time as a tow- Luxembourg, Italy and Portugal, insurtech firm for home ing and road assistance profes- as well as in Spain, Allianz Part- emergency and legal protec- sional arrives. Moreover, Uber ners hopes that the transaction tion cover drivers carrying the co-branded will allow Multiasistencia to ex- Uber debit card issued by Go- pand its operations internation- In the UK, ARAG has reported Bank qualify for discounts on ally into the many territories in that it has been selected by in- this service. which its new parent has opera- surtech firm Homelyfe to pro- tions. The aim in this context is vide the home emergency and Europ Assistance secures road for the Multiasistencia brand legal expenses cover with its assistance tie with LeasePlan and business model to remain buildings and contents proposi- in Italy… separate from Allianz Partners, tion which can be purchased thus allowing it to maintain the rapidly through the Homelyfe In Italy, Europ Assistance has neutrality of services offered. app over the course of a few entered into plans to work for minutes. The option to select road assistance with LeasePlan, Gothaer boosts smart home home emergency and legal pro- a vehicle rental and fleet man- offering through partnership tection cover is included within agement company that manages with Grohe the app quotation process, over 116,000 vehicles in the providing a convenient way for country thereby endowing it Also in the realm of home assis- customers to buy these elements with a share of close to 20% of tance, Germany-based insurer alongside their building and the Italian market for fleet man- Gothaer has added a further contents policy. Homelyfe agement services. enhancement to its smart home launched in 2017 with the aim offering in co-operation with of using the latest technology to Grohe, a manufacturer of luxury make buying and managing in- fittings for bathrooms and surance as easy as possible for kitchens. Specifically, customers consumers.

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… and commences road assis- COMMERCIAL INSURANCE ARAG works with Mercia tance partnership with Renault Underwriting for commercial in Portugal Mitsui Sumitomo secures legal expenses insurance commercial insurance part- Furthermore, in a comparable ners in Kenya and Mozam- In the UK, ARAG has earned a move in Portugal, Europ Assis- bique mandate with Mercia Under- tance has announced a new writing, a new Birmingham- partnership with Renault, Strengthening its presence in based MGA established in 2018, through which it will provide East Africa, Mitsui Sumitomo to provide it with commercial road assistance services to driv- has concluded two strategic alli- and landlord legal expenses covers of both Dacia and Renault ances in the region, namely with er to integrate into its commer- vehicles. the ICEA LION General Insur- cial lines policies. In particular, ance Company in Kenya and the cover for property owners is International SOS subsidiary ICE (International Commercial differentiated as it allows bro- provides risk management and & Engineering) Seguros in kers to offer cover to landlords assistance services to Luxavia- Mozambique. In this context, with mixed portfolios of com- tion ICEA LION and ICE will serve mercial, residential and holiday as local insurance carriers, issu- property, under a single facility. In Luxembourg, MedAire, a ing policies to Mitsui Sumito- travel security specialist subsidi- mo’s Japanese customers that Gras Savoye links with online ary of International SOS, has have operations in the two broker to target French travel been selected by Luxaviation, a countries. In return, Mitsui Su- agents private jet and helicopter ser- mitomo will offer its reinsurance vices company, to provide risk capacity and underwriting In France, Gras Savoye and management services and knowledge to the two partners. around-the-clock global assis- +Simple, an online insurance broker for the self-employed tance as part of a comprehen- Mitsui Sumitomo believes that sive security solution for its fleet and very small businesses East Africa holds great potential launched in 2015, have signed a of 270 aircraft. Specifically, the for further similar collabora- agreement entails real-time trav- partnership with the Association tions, citing a combination of Professionnelle de Solidarité du el security reporting about desti- high population growth, rich nations, regions, airspace and Tourisme that will give around natural resources and relatively 5,000 travel agencies belonging airports that is thoroughly vet- low insurance penetration. In ted and analysed by aviation ex- to the association access to a preparation for these two deals, dedicated website that features perts. In addition to the provi- plus other similar ones in future, sion of this information, insurance policies designed to the Japanese insurer had estab- cover operational risks faced by MedAire’s aviation security team lished an office in South Africa is available on a 24/7 basis for small travel agencies. in 2015, conducting market re- ______advice and assistance to respond search across the African conti- to security risks, events and nent that has also allowed it to threats, as needed. provide insurance-related data

______to enterprises in the region with Japan-based parent companies.

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HOUSEHOLD INSURANCE gain access to opportunities in surance via a digital platform. The the French private health insur- tie means that customers of Signal Iduna collaborates ance market by benefiting from Friendsurance can benefit from with ELEMENT for house- the expertise and understanding Ottonova's offerings which range hold cover for Borussia Dort- of French regulatory processes from a 24-hour health concierge mund fans that Humanis has. Another out- service to digital medical consulta- come of the deal is that the two tions and patient reviews. In re- In Germany, Signal Iduna and companies will jointly develop turn, Ottonova’s customers can ELEMENT, respectively an in- healthcare insurance products participate in Friendsurance’s P2P surance underwriter and an in- that comply with regulatory reinsurance model, wherein individ- surtech company, have designed quirements in the UAE, a mar- uals with a common background an affinity household contents ket previously unexplored by or interest join together in groups, and liability insurance proposi- Humanis. At the time of the bear each other's costs in the tion for members and fans of announcement, Humanis re- event of a claim, and receive pre- the Borussia Dortmund football ported that it had 700,000 cor- mium refunds at the end of each club. Goals scored by Borussia porate clients and insured year if total claims remain below a Dortmund will reduce custom- around 10 million individuals. set threshold. ers’ insurance contribution, and Bupa teams up with Babylon their supporters will be able to Sumitomo Life launches Vi- for digital healthcare services get partial refunds of up to EUR tality-branded health insurance module in Japan 50 on the price of their tickets if In the UK, Bupa has extended a they are unable to attend a partnership with Babylon, a digi- In Japan, Sumitomo Life has game. tal healthcare provider, that will ______become the latest insurer to roll allow its corporate clients to ac- out a Vitality-branded health cess virtual healthcare services insurance module that rewards LIFE, HEALTH AND CRED- through Babylon’s app. These customers in line with their ef- ITOR INSURANCE services include 24-hour access forts to stay healthy and that is to doctors plus digital prescrip- Aetna International ties with being offered as an optional add tion writing and health infor- Humanis for multiple health -on to the insurer’s core life and mation. Furthermore, Bupa has insurance initiatives health insurance products. Indi- stated that it aims to extend the viduals who sign up to it will Aetna International has finalised offering to a broader range of its receive a 15% discount on their customers in due course. a strategic agreement with Hu- insurance premiums and gain manis, a France-based insurer points when they go to a gym, Friendsurance collaborates specialising in life and health meet certain health require- with Ottonova, a provider of insurance plus retirement sav- ments during medical check- digital health insurance ings, that will be valid world- ups, and engage in other health- wide. Through the new arrange- improving activities. In fact, pol- In an analogous agreement in the ment, customers of Humanis icyholders will be divided into will gain access to the interna- digital and mobile healthcare are- four segments based on their na, Germany-based Friendsurance tional medical network and ser- health, with those in the top vices of Aetna International, has joined forces with a Munich- quartile entitled to a premium based insurtech firm, Ottonova, while Aetna International will discount of 30%. which provides private health in-

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APRIL works with French customers. The partnership will has entered an agreement that will real estate website for mort- also help Wikicampers to ex- see it insuring all rentals made us- gage-related creditor insur- pand elsewhere in Europe by ing GoMore, a car-sharing plat- ance offering its services in Belgium, form, which has a user base of Germany and Spain. Renters around 2 million individuals. The In France, APRIL has conclud- with Wikicampers will be able to insurance, which has been de- ed a one-year agreement with opt for comprehensive cover signed specifically for GoMore Logic-Immo, an online portal encompassing both damage and and that is included in its standard for real estate listings, to offer theft which also comprises 24- user agreement, covers potential creditor insurance to prospec- hour road assistance. financial losses for both GoMore tive property buyers. Visitors to as well as its lessees. the Logic-Immo site will have … and crafts affinity product access to information and an for Streetscooter in Germany Direct Line Group sets up online quotation tool showing new partnership with the cost of APRIL’s creditor Meanwhile, in Germany, Allianz Volkswagen Insurance Ser- insurance. At the time of the has begun offering third-party vices announcement, Logic-Immo liability and comprehensive in- asserted that it had more than 1 surance for vehicles from In the UK, Direct Line Group million property listings pub- StreetScooter, a company spe- has entered into a new venture lished on its site. cialising in the manufacture of with Volkswagen Insurance Ser- environmentally-friendly electric vices whereby it is providing AXA gains opportunity to dis- vehicles that is owned ultimately white-labelled insurance for five tribute insurance to members by the Deutsche Post DHL VW group brands, namely Audi, of Catalan Tennis Federation Group. The policy will be made SEAT, ŠKODA, Volkswagen available at selected Ford dealers and Volkswagen Commercial In Spain, AXA has agreed to throughout Germany that sell Vehicles, for a five-year mini- sponsor the Catalan Tennis Fed- StreetScooter vehicles. At the mum term. In 2017, these five eration under a new deal that time of the deal, Allianz stated brands held a combined market will also allow it to promote its that more than 6,000 share of 20% of new car regis- life, health and dental protection StreetScooter vehicles were al- trations in the UK. products to 25,000 members ready in use for the delivery of belonging to its partner. letters and parcels, with a total esure sells discounted motor ______cumulative mileage of more insurance through Blue Light than 26 million kilometres since Card Scheme MOTOR INSURANCE inception. StreetScooter is available in a variety of models in- Also in the UK, esure has an- Allianz introduces insurance cluding as a delivery van, refrig- nounced that it has made its for customers of Wikicamp- eration unit or pick-up truck. motor insurance offering availa- ers… ble via the Blue Light Card Moderna Försäkringar wins Scheme, a nationwide network In France, Allianz has an- mandate from Swedish car of retailers and service providers nounced a partnership with sharing platform who offer discounts to those Wikicampers, a provider of P2P who work in the emergency ser- motorhome rental services, to In Sweden, Moderna Försäkringar vices and armed forces. In par- cover the specific needs of its

www.finaccord.com 8 Global Affinity Finance Club Affinity Insurance ticular, Blue Light Card mem- Legal & General. The partner- further five years. Through this bers can save 5% on their car ship will initially last for three arrangement, which was origi- insurance when getting a quote years. At the time of the agree- nally put in place almost 20 from esure. ment Legal & General identified years ago, Allianz Partners will ______itself as the UK’s seventh-largest continue to provide Mazda- home insurance provider, with branded extended warranties. NICHE INSURANCE over 1.6 million policyholders. Europ Assistance seals prod- Allianz ties with French Moderna Försäkringar pro- uct insurance tie with retailer housing rental platform for motes pregnancy and child- of flooring products in Po- cover aimed at students birth insurance via app devel- land oper In France, Allianz has linked In Poland, Europ Assistance has with Studapart, a housing rental In Sweden, Moderna Försäkringar established a new initiative with platform that helps students to has begun working with Stroller, a Komfort, a retailer of carpet and find accommodation close to company that develops mobile flooring products, by means of their campus. The aim of this apps that provide tips and advice which insurance underwritten relationship is to offer insurance on pregnancy and life with small by Generali, the assistance to students without a guarantor children, and that also runs a digi- firm’s parent company, will be who often struggle to find af- tal platform that enables prospec- offered to buyers of wooden fordable accommodation and tive and new parents to find and floors from Komfort. As well as that will cover private landlords’ befriend other parents within their insuring the floors themselves, unpaid rent and litigation costs. vicinity. By means of this, Moder- the cover also comprises assis- Through the partnership, na Försäkringar hopes to gain tance for electrical and plumb- Studapart will also offer access greater visibility for its products. ing problems. to other products from Allianz These include insurance products ______including various types of home that cover complications and reinsurance. sulting hospital stays that can oc- TRAVEL INSURANCE cur during pregnancy and child- DAS wins legal protection birth, which will be offered Allianz Global Assistance insurance mandate with Le- through Preggers, an app created makes travel cover available to gal & General by Stroller for charting and track- users of Brisbane Airport web- ing pregnancies. site In the UK, Legal & General has ______signed an agreement with legal In Australia, Allianz Global As- protection insurance specialist PRODUCT WARRANTIES / sistance has begun offering its DAS by means of which the INSURANCE travel insurance policies through latter will provide legal expenses the website of Brisbane Airport. cover to be included with the Allianz Partners renews ex- The company reports that al- former’s home insurance poli- tended warranty partnership most 40% of its customers buy cies. DAS will also provide a with Mazda in the UK their travel cover in the week legal advice helpline for custom- immediately before departure ers with both home and pet in- In the UK, Allianz Partners has and that almost a half of these surance policies acquired from renewed its partnership with car by it on the day of travel itself manufacturer brand Mazda for a or on the preceding day. Hence,

www.finaccord.com 9 Global Affinity Finance Club Affinity Insurance it believes that establishing an portfolio of travel insurance and HanseMerkur reinforces travel affinity link with an airport may assistance businesses, trading insurance links in Germany be another means of targeting under the Travel Ace and Uni- these ‘last minute’ buyers. versal Assistance brands, in Ar- In Germany, HanseMerkur and gentina, Brazil, Chile, Colombia Reiseland, a travel agency chain, China Taiping launches trav- and Mexico. Through this acqui- have extended their exclusive el insurance product on sition, Cover-More has gained travel insurance partnership for Ctrip.com access to a high number of sig- a further five years. The compa- nificant distribution partners in nies have co-operated already In Hong Kong, China Taiping the region. Finaccord’s most for around 17 years. In a similar has started working with recent research into travel cover move aimed at consolidating its Ctrip.com to offer its standard in Latin America found the distribution network for travel suite of travel insurance prod- most important of these to in- cover, HanseMerkur has also ucts to the customers of the clude CVC and Rextur Advance been elected as a partner of the online travel giant. Specifically, in Brazil, Garbarino Viajes, In- Kreuzfahrt Initiative, a Germa- when users of Ctrip’s web site in terturis and Julia Tours in Ar- ny-based cruise travel associa- Hong Kong make a booking, gentina, and Cocha in Chile. By tion that brings together travel they can opt for travel cover means of these acquisitions, companies that sell cruise holi- underwritten by China Taiping. Cover-More is aiming to estab- days. Cover ranges from one to 45 lish itself as a leader in the Latin ______days, includes up to HKD American market. 1,500,000 in medical expenses GENERAL protection and up to HKD ERV augments presence in 20,000 for personal baggage northern Europe through part- Generali increases ownership loss, and premiums can be ad- nership with KILROY Interna- stake in joint ventures with justed according to the custom- tional Future Group in India er's ticket price and dates of travel. In addition, China Tai- Across multiple countries, ERV In India, by means of an invest- ping will also provide global has announced a travel insur- ment of up to EUR 120 million, emergency support services. ance partnership with KILROY Generali has concluded an Ctrip facilitates travel bookings International, a travel group ac- agreement with Future Group for approximately 5,000 destina- tive in Belgium, Denmark, Fin- to increase its stake in two in- tions around the world, and its land, Iceland, the Netherlands, surance joint ventures from hotel reservation network co- Norway, Poland and Sweden 25.5% to 49.0%, underscoring vers over 200 countries and oth- through the BENNS, Jysk Re- its commitment to growing its er territories. jsebureau, KILROY and Win- presence in the local insurance berg Travel brands. By means of market. The joint ventures in Cover-More expands in Latin this agreement ERV will pro- question are Future Generali America through multi-country vide travel cover for customers India Life and Future Generali acquisition of these brands in all of the in- India Insurance, respectively life scope countries. and non-life insurance compa- In Latin America, Cover-More, nies. The aim of the investment a specialist travel insurer ac- is to accelerate sales of the com- quired by Zurich in 2017, has panies’ insurance products announced the acquisition of a through the network of Future

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Group, a privately-owned con- and innovative marketing via and for lifetime mortgages. glomerate with a focus on retail- WeChat, the messaging app that ______ing that offers a unique distribu- is a subsidiary of Tencent. In tion system in India. In the most return, Tencent will draw on the recent financial year, the two partnership to explore how it LIFE, HEALTH AND CRED- joint ventures generated gross can become further involved in ITOR INSURANCE written premiums of EUR 375 the insurance sector. In addi- Crédit Agricole seals long- million. tion, China Life has also started term bancassurance tie with collaborating with JD.com, an e- Credito Valtellinese Achmea and Fairfax Finan- commerce company, with the cial combine for digital per- aim of building out its digital In Italy, Crédit Agricole Assur- sonal lines joint venture in capabilities and taking advantage ances and Credito Valtellinese Canada of emerging opportunities in (CreVal), a regional bank, have online insurance. created an exclusive long-term With a focus on Canada, Ach- ______partnership focused on life in- mea, a Netherlands-based insur- surance. This partnership will ance group, has signed an agree- Bancassurance allow Crédit Agricole Assuranc- ment with Fairfax Financial to es, the insurance arm of Crédit participate in a fully digital prop- HOUSEHOLD INSURANCE Agricole, to sell savings-related erty and casualty insurance life insurance and certain pro- Legal & General secures duction products via CreVal’s proposition, including motor household insurance partner- and household cover, through distribution network for a peri- ship with The Co-operative od of 15 years. Onlia, an online joint venture Bank that the two partners have set As part of the transaction, up. Fairfax Financial anticipates In the UK, Legal & General has Crédit Agricole Assurances has that Onlia will benefit from started offering household in- acquired the entire share capital Achmea’s digital insurance expe- surance to customers of The Co of Global Assicurazioni rience in the Netherlands and -operative Bank both through (formerly the captive insurer of other European markets. the bank’s website and via a CreVal) for EUR 80 million, of dedicated phone service. Legal which EUR 70 million is to be China Life forges strategic & General’s ‘SmartQuote’ facili- paid at closing and EUR 10 mil- agreements with JD.com and ty will also be accessible to the lion will be deferred until the Tencent bank’s customers through the end of the fifth year of the part- initiative, marking the first time nership, subject to achievement In China, China Life has signed it has been available outside of of certain pre-agreed sales ob- an agreement with technology the insurer’s direct business. jectives. In addition, Crédit giant Tencent that will allow it This facility is able to provide Agricole Assurances will pur- to utilise Tencent’s cloud com- most customers with a quote for chase a minority stake of 5% in puting capabilities to strengthen buildings and contents cover in CreVal and the two parties will its offering. In particular, China less than 90 seconds. The Co- assess the opportunities for ex- Life states that it is hoping to operative Bank already works tending the partnership to other leverage the partnership to with Legal & General for other product areas. boost further co-operation in types of insurance, notably pro- the fields of smart medical care tection-related life insurance,

www.finaccord.com 11 Global Affinity Finance Club Bancassurance

Nobis Filo Diretto and Extra- divestment is consistent with its insurance market through a new banca combine to devise prod- strategy to simplify its business. joint venture with Matmut, a uct for non-EU citizens As at the fourth quarter of 2018, mutual insurance company, to the sale remained subject to reg- be known as Cardif IARD. BNP Also in Italy, Nobis Filo Diretto ulatory approval and was ex- Paribas will own 66% of the eq- and Extrabanca are working to- pected to complete during 2019. uity of this company and Mat- gether to create an integrated ______mut 34% of it. In particular, as product that includes health insur- part of its strategic development ance cover with a bank guarantee, MOTOR INSURANCE plan, BNP Paribas is aiming to both of which are required by non achieve a 12% penetration rate -EU citizens who wish to apply ICBC and PICC develop for non-life insurance among its for a visa valid within the online platform for car own- retail customers and to triple the Schengen Area (which consists of ers overall volume of policies sold 22 EU member states as well as from a range including car, Iceland, Liechtenstein, Norway In China, banking group ICBC household, legal protection, mo- and Switzerland). The product, and state-owned insurer PICC tor cycle and student insurance. which will be known as the have announced a strategic In addition, the joint venture ‘Schengen Pack’, has a potential agreement to develop and will increase the number of staff pool of 1.8 million customers in launch a car owner platform at the banking group focused on Italy with a possible requirement (branded as ‘Che Zhi Tianxia’) this activity from around 230 to to simplify the process of meeting to facilitate the sale of products more than 400 by 2020, with a the requirements for a Schengen related to vehicle ownership that total of around 15,000 branch visa. Nobis Filo Diretto has stated are available from both organi- staff being given additional that it hopes to promote the prod- sations. Specifically, motor in- training to help them to cross- uct through travel agencies and surance policies underwritten by sell the products in scope. other travel-related distributors as PICC and car finance contracts it expects growth in the coming from ICBC will be distributed UniCredit concludes strategic years in the number of Schengen through the platform, while oth- bancassurance agreements visas granted for the purposes of er related services such as road with Allianz and Generali tourism. assistance, vehicle maintenance and vehicle washing will also be In a bid to consolidate its pres- ANZ divests New Zealand made available. ence in the market for bancas- life insurance subsidiary to ______surance in Central and Eastern Cigna Europe, UniCredit has concluded new deals with Allianz and In New Zealand, ANZ Bank GENERAL Generali. In respect of Allianz, has agreed to sell its OnePath it has been appointed as Life subsidiary to Cigna for a BNP Paribas creates non-life UniCredit’s exclusive partner for consideration of NZD 700 mil- insurance joint venture with all types of life and non-life in- lion. The sale endows Cigna Matmut surance in seven countries, with the exclusive access to sell namely Bulgaria, Croatia, the life insurance to ANZ’s custom- In France, BNP Paribas has an- Czech Republic, Hungary, Ro- ers for a period of 20 years nounced that it is seeking to am- mania, Slovenia and Slovakia. As while ANZ believes that the plify its presence in the non-life for Generali, the partnership

www.finaccord.com 12 Global Affinity Finance Club Affinity Banking focuses on creditor insurance Affinity Banking group earlier in 2018) have un- for UniCredit’s local subsidiaries veiled a partnership to offer a in eight countries, namely Bos- AFFINITY BANKING AND one-year, fixed-rate savings ac- nia Herzegovina, the Czech Re- CARDS count which will enable custom- public, Croatia, Hungary, Roma- ers to accrue miles via the air- nia, Serbia, Slovenia and Slo- Mastercard and Unilever expe- line’s Flying Club loyalty pro- vakia. Moreover, in Serbia, the dite access to credit for entre- gram instead of interest. co-operation also includes life preneurs in Kenya and non-life insurance products. In particular, it will be possible The agreement is also a signifi- With an initial focus on the Af- to exchange Flying Club miles cant aspect of Generali’s aim to rican continent, Mastercard has for a range of Virgin Atlantic strengthen its position in the announced a strategic partner- rewards including both flights region, following its acquisition ship with Unilever to enable mi- and cabin upgrades. Customers of Adriatic Slovenica in Slovenia cro-retailers to gain quick access can earn 1,400 miles for every and Concordia in Poland. to credit. A pilot scheme in GBP 1,000 that they save, Kenya employed distribution meaning a customer saving Erste Group extends partner- data from Unilever that demon- GBP 15,000 could earn enough ship with Vienna Insurance strated how much stock micro- Flying Club miles for a return Group retailers had acquired with this flight to New York. To be able then used as a basis for the mi- to buy the same number of In Austria, Erste Group and cro-retailers to apply for micro- miles directly from Virgin Atlan- Vienna Insurance Group (VIG) loans from Kenya Commercial tic, a customer would need a have extended their long- Bank. Where granted, credit is rate equivalent to 2.1% to earn standing international bancas- then provided through Master- enough interest. These accounts surance alliance through to the card’s digital payment services. can be opened with just GBP 1 end of 2033. In doing so, the The partners aim to have been up to a maximum balance of partners have expressed a wish able to organise micro-loans for GBP 1 million and, when they that they will be able to increase up to 20,000 micro-retailers in mature, interest earned is con- cross-selling rates to each oth- Kenya by the end of 2018 with verted into Virgin Atlantic Fly- er’s customers, something that expansion then planned for oth- ing Club miles. they hope to achieve in part er countries in Africa and also in through greater usage of digital the Asia-Pacific region. Through Westpac allows home loan channels. this initiative, they hope to dis- customers to collect miles ______suade micro-retailers from bor- with Virgin Australia loyalty rowing at exorbitant interest program rates from informal lenders. In a parallel move involving the Virgin Atlantic launches af- accumulation of frequent flyer finity savings product with miles along with a financial Virgin Money product, Westpac customers in Australia applying for a new In the UK, Virgin Atlantic and home loan are now also able to Virgin Money (which was ac- collect miles with Velocity, the quired by the CYBG banking loyalty program run by Virgin

www.finaccord.com 13 Global Affinity Finance Club Affinity Banking

Australia. Specifically, customers AUTOMOTIVE FINANCE agreements, the partnership is who take out home loans of based on a referral model by AUD 250,000 or more can ac- FCA Bank becomes accredit- means of which FCA will pro- cumulate enough points to re- ed provider of finance for As- vide the vehicles to customers deem two return tickets for ton Martin in Europe… with the operational lease then Hong Kong. Westpac has stated directly managed by LeasePlan. that the program aims to reduce As part of a Europe-wide agree- It is the first partnership of its the cost of holidays for those ment, FCA Bank and Aston kind for LeasePlan with a major taking out home loans, citing Martin have signed a partner- automotive manufacturer group research from Velocity which ship that will see the bank offer- in Europe. found that 72% of Australians ing point-of-sale finance to As- found it difficult to spend mon- ton Martin dealers based in Eu- Jaguar Land Rover and motor ey on holidays once they had rope. In fact, all 36 sales points finance arm of Lloyds Bank- committed to a home loan. of the UK-based luxury auto- ing Group continue to collab- motive brand will have access to orate Intesa Sanpaolo gains access financing options from FCA to Italian post office distribu- Bank. Note that FCA Bank is Meanwhile, in the UK, Jaguar tion network itself a joint venture co-owned Land Rover and Black Horse, a by Fiat Chrysler group and provider of vehicle finance that In Italy, the post office network Crédit Agricole. is owned by Lloyds Banking (Poste Italiane) and Intesa Group, have extended a partnership for manufacturer- Sanpaolo, a banking group, have … and sources leasing prod- signed a three-year framework ucts from LeasePlan in se- branded finance and leasing ser- agreement for the distribution of lected countries vices until at least the end of 2020. The agreement will see selected products and services of Black Horse continuing to pro- the two groups through several Also in Europe, FCA Bank has vide white-labelled finance for non-exclusive agreements that appointed LeasePlan, an auto- customers buying new Jaguar aim to broaden product offerings motive leasing and fleet manage- and Land Rover vehicles. This to the benefit of the customers of ment company based in the builds on the ongoing success of both organisations. In particular, Netherlands, to become its pre- an existing six-year arrangement and with a focus on financial ferred leasing partner for its that began in 2014 with both products, Intesa Sanpaolo’s mort- dealer network in markets in partners committed to the in- gages and personal loans will be which it is not present itself. creasing use of digital solutions distributed through the post office These countries include Austria, for customers seeking to buy network as will certain wealth and the Czech Republic, Denmark, and finance vehicles. asset management products Finland, Greece, Hungary, Nor- sourced from Intesa Sanpaolo’s way, Poland, Portugal, Slovakia, Allianz and Deutsche Bank investment management subsidi- Sweden and Switzerland. Specif- tie with Auto1 for new fintech ary, Eurizon Capital SGR. ically, the arrangement has been joint venture in Germany ______made with a key focus on the

SME segment, whose growth In Germany, Deutsche Bank has tended to be ahead of that has announced that it is working for other customer segments. In with Allianz and Auto1, an contrast to regular white-label

www.finaccord.com 14 Global Affinity Finance Club Affinity Banking online marketplace that matches CO-BRANDED CARDS drivers such as fuel retailers individuals wishing to sell used Exxon and Mobil, supermarket cars to dealerships, to launch a American Express rolls out chain Walmart, telecoms provid- new venture called Auto1 new co-branded card with er Sprint, vehicle maintenance Fintech. This will offer finance Marriott hotel group specialist Jiffy Lube, and vehicle and insurance products to vehi- parts distributors Advance Auto cle dealerships buying and sell- In the US, American Express Parts and Carquest Auto Parts. ing used vehicles via Auto1. By has introduced a new co- means of this initiative, Auto1 is branded card in conjunction Sberbank initiates partner- seeking to diversify its offering with the Marriott hotel group. ship with LUKOIL Group for and to encourage customer loy- Specifically, the Starwood Pre- commercial credit cards alty as it aims to become a dom- ferred Guest American Express inant online platform for used Luxury Card has an annual fee In Russia, Sberbank is working vehicles. Earlier in 2018, Soft- of USD 450, and members can with LUKOIL, a Moscow-based Bank, a Japan-based multina- earn up to USD 300 in state- energy corporation specialising tional, had invested EUR 460 ment credits each year, which in the extraction and production million in Auto1, valuing the can be spent on eligible pur- of petroleum products, to devel- company at around EUR 2.9 chases at more than 6,700 par- op a suite of business credit billion. ticipating hotels. Cardholders cards for entrepreneurs and le- also enjoy complimentary ‘Gold gal entities that are customers of Orient Corporation backs ve- Elite Status’ with the ability to LUKOIL, making LUKOIL hicle finance product offered earn ‘Platinum Elite Status’ if the bank’s first partner for fuel by Daisan Bank they spend USD 75,000 on the cards. Sberbank states that 25% card in a calendar year. They are of its business customers are In Japan, Orient Corporation also entitled to a free night’s stay also customers of LUKOIL. has agreed to back a new fiat any Marriott hotel if they ac- nance product created by Dai- cumulate up to 50,000 points UnionPay unveils co-branded san Bank, a regional bank that every year after the first anniver- card in Japan with Ctrip and serves customers in the Mie pre- sary that the card account has Sumitomo Mitsui Card Com- fecture. The product is capped been set up. pany at JPY 5 million, has a maximum duration of one year and GoBank and Uber launch new In Japan, UnionPay has an- can be used to finance both new co-branded Visa debit card nounced that it has issued a co- and used cars and motorcycles, branded credit card in conjunc- Also in the US, GoBank, a sub- as well as expenses incurred as a tion with the Sumitomo Mitsui sidiary of Green Dot Corpora- result of periodic vehicle checks. Card Company and China-based tion, has unveiled an innovative ______travel firm Ctrip. UnionPay is new co-branded debit card with already accepted at approxi- Uber that runs on the Visa net- mately 700,000 merchant loca- work. Benefits of the card in- tions and over half of all ATMs clude discounts for on-demand in Japan, including over 90% of road assistance from Urgent.ly local convenience stores. Union- plus cashback or discounts at a Pay states that it hopes to lever- variety of major partner organi- age the strength of both of its sations of relevance to Uber’s

www.finaccord.com 15 Global Affinity Finance Club Affinity Banking partners to promote this card, uct in association with the New exclusive partner used for Pay- noting in particular that Ctrip is Oriental Education Group, a Pal’s online consumer financing the largest online travel compa- Beijing-based provider of pri- program in the US through to ny in China. By means of the vate educational services and 2028. Moreover, the two part- Japanese initiative, customers textbooks, aimed at Chinese stu- ners already work together for with the new card can enjoy dis- dents who are furthering their two co-branded Mastercard counts when booking hotels on studies abroad or who are con- products. Trip.com, the brand under sidering studying overseas. The which Ctrip operates in Japan. card, which offers discounts on Klarna secures three new fi- They can also accumulate bonus courses offered by New Orien- nance relationships with di- points which can be used to ob- tal Education Group, can also verse partners in the UK… tain discounts for hotel or flight be used to withdraw cash at any bookings made via Trip.com of the bank’s branches In the UK, online consumer and can opt for free travel insur- (numbering around 600) across finance competitor Klarna has ance and other UnionPay offers 55 countries. signed three new agreements for when paying with the card. ______financing programs. First, it has signed an agreement with Beau- JCB ties with CIMB Niaga CONSUMER FINANCE ty Bay that will enable the retail- Bank and Indosat for co- er’s customers to use Klarna’s branded program in Indone- Synchrony Financial com- pay-later service when checking sia pletes purchase of PayPal’s out online. In particular, Beauty online consumer credit pro- Bay’s shoppers can receive their In Indonesia, JCB has launched gram in the US products and pay for them up to a new co-branded credit card in 30 days later, with no interest or conjunction with CIMB Niaga In the US, Paypal has an- fees. Launched in 2007, Beauty Bank and telecoms firm Indosat. nounced the closing of its con- Bay offers shoppers more than The card features the use of up sumer credit receivables transac- 7,000 products from over 200 to 2 GB in data every month for tion with Synchrony Financial. UK-based and international a whole year if the cardholder Under the terms of the transac- brands, including makeup, skin- spends a minimum of IDR tion, Synchrony acquired USD care and other body products. 800,000 (about USD 53.70) per 7.6 billion in receivables, includ- month. Other perks of the card ing PayPal’s US consumer credit Likewise, it has partnered with include a fixed instalment pay- receivables portfolio, which to- online furniture brand Swoon to ment for the cardholder’s phone talled USD 6.8 billion at the offer its ‘Slice it’ consumer fi- bills with a low interest rate for time of closing, and approxi- nance solution. This means that three, six or 12 months. mately USD 0.8 billion in partic- Swoon’s customers can spread ipation interests in receivables payments funding the cost of Bank of China develops cred- held by unaffiliated third parties. their purchases, with expendi- it card program for Chinese In return, PayPal received ap- ture of between GBP 500 and students looking to study proximately USD 6.9 billion in GBP 1,000 being spread over abroad total consideration at closing. six months, and expenditure The conclusion of the transac- above GBP 1,000 over 12 In China, the Bank of China has tion is important as it means monthly instalments. Klarna created a new credit card prod- that Synchrony has become the believes that this facility simpli-

www.finaccord.com 16 Global Affinity Finance Club Affinity Banking fies the checkout process, allow- sumer Finance and Bankia, the forms. In the UK, users of the ing consumers to make their fourth-largest bank in that coun- online wallet ecoPayz can now purchases by simply entering try by total assets, have finalised top up funds and make interna- their email and delivery address, an agreement to set up a joint tional or domestic money trans- rather than having to provide venture in consumer finance. fers using Western Union’s digi- convoluted log-in information Crédit Agricole has an equity tal network. Products carrying and card details. stake of 51% in the joint ven- the ecoPayz brand are offered ture while Bankia has the re- by PSI-Pay, an international Lastly, Klarna has come to an maining 49%. firm offering instant payment agreement with EMaC, a pro- ______services to customers and busi- vider of service plans to UK car nesses. The deal is Western Un- dealers, that will allow dealers in INTERNATIONAL PAY- ion’s first with a UK-based EMaC’s network to offer their MENTS / REMITTANCES online wallet provider. customers the ability to use a flexible monthly financing TransferWise integrates pro- Another noteworthy partnership scheme, which allows consum- cessing system into Groupe concluded by Western Union is ers to make payments for re- BPCE’s mobile banking apps one with Geoswift, a company pairs and vehicle accessories specialising in payment solutions over the course of 12 months. both within and outside of Chi- In France, money transfer firm na. The alliance with Geoswift TransferWise has begun work- allows Western Union to accept … and works with Etsy in ing with Groupe BPCE, the Germany payments via the WeChat mes- country’s second-largest bank in saging app, which it will embed terms of market share of cus- In Germany, Etsy, an online into its GlobalPay platform cre- tomer deposits and lending. The marketplace for the sale of ated for Chinese students. In partnership will see Transfer- handmade or vintage items, has this context, Western Union Wise provide international mon- integrated Klarna into the cen- cited a survey conducted by the ey transfer services for the bank- tral checkout process of both its UN showing that payments ing group’s customer base of website and app. The partner- made through WeChat have ris- around 15 million. TransferWise ship enables Etsy to offer its en from a value of around USD states that this is the first time customers the option to pay lat- 11.6 billion in 2012 to an esti- that a major bank in Europe has er using purchase by invoice, mated USD 1.2 trillion in 2016. directly integrated its processing expanding its existing range of It also reiterated the importance system into its mobile banking payment options such as Ameri- of its GlobalPay platform and apps. can Express, PayPal, Visa and its intended student audience, an instant bank transfer service Western Union embeds ser- explaining that one in four inter- known as ‘Sofortüberweisung’ vices into digital platforms in national students worldwide are which is also run by Klarna. China, Russia and the UK from China.

Crédit Agricole Consumer Finally, in Russia, customers of Finance concludes joint ven- Across the territories in which it Post Bank can now use its mo- ture agreement with Bankia is active, Western Union has bile banking app to make money agreed on three separate part- transfers using Western Union nerships for the integration of In Spain, Crédit Agricole Con- into bank accounts across more its services into digital plat-

www.finaccord.com 17 Global Affinity Finance Club Affinity Banking than 50 countries. a Visa debit card, and the com- Lastly, in Brazil, Visa has ______panies also announced further launched a partnership with Su- collaboration to enable Visa’s plicy Cafés Especialidades, a MOBILE / ONLINE PAY- partners to accept mobile pay- coffee retail and supply compa- MENTS ments. ny, with the aim of enabling payments by app. The app al- Mastercard broadens use of Meanwhile, in Germany, cus- lows customers to order and pay storefront window technology tomers with Visa cards issued by for their coffee in advance using through partnership with US Commerzbank and its subsidiary Visa Checkout before collecting clothing retailer Comdirect are now be able to the order from an outlet, and use Google Pay to make pur- plans exist to enable home de- In the US, Mastercard has chases via their Android mobile liveries in some locations. Be- launched an initiative with Fred devices. The service will subse- ginning with one store, the com- Segal, a clothing and accessories quently also be extended to cus- panies plan to extend app pay- retailer based in Los Angeles, tomers with cards issued by BW ments to over 25 locations by that will enable shoppers to pur- -Bank. the end of 2018. chase items through an interac- tive window at the front of the Visa has also continued to seek Itaú Unibanco launches Ap- shop. Mastercard states that this out new partnerships in the bur- ple Pay and Samsung Pay in technology will enable shoppers geoning field of wearable pay- Brazil to make purchases after store ment technology. In Italy, it has hours, with items to be shipped started working with Unipol Also in Brazil, Itaú Unibanco, to the address specified during Banca to launch a bracelet that the country’s largest bank by checkout. It also reports that is able to make payments. The assets and market capitalisation, this is the first in a series of bracelet, called ‘LETSPAY’, was has signed two separate agree- planned collaborations with created in collaboration with ments that will give its custom- Fred Segal in experimental retail Nexi and is being sold through ers access to mobile payment technology. Unipol Banca’s network of schemes. Apple has made its more than 250 branches. It al- Apple Pay service available to Visa unveils multiple digital lows for payments of up to Itaú’s 1.2 million cardholders and mobile payment initiatives EUR 25 without requiring a who also own an iPhone 6 or a In line with its activities in pre- PIN. more recent model. Under the vious quarters, Visa has rolled terms of the partnership, Brazili- out a number of partnerships in Likewise, in Japan, Visa has an retailers such as the super- the area of mobile and online partnered with Garmin, a GPS market chain GPA will offer payments. For instance, in Can- technology specialist, to launch discounts on purchases using ada, it has announced an exten- the ‘Garmin Pay’ service, ena- Apple Pay. Similarly, Samsung sion of its existing partnership bling digital payments to be Pay is also now available to An- with PayPal, allowing consumers made using some Garmin droid users who are also cus- to add Visa cards into the Pay- watches. The service initially tomers of Itaú Unibanco. Fol- Pal wallet from the apps of par- allows holders of the Mitsubishi lowing the deal, Samsung has ticipating banks. Visa cardhold- UFJ Visa debit card to make stated that it holds 12 different ers will also be allowed to move such payments. partnerships with Brazilian funds from a PayPal account to banks, including Bradesco, Ban-

www.finaccord.com 18 Global Affinity Finance Club Affinity Banking co do Brasil, Caixa Econômica count of EUR 3 per ticket for Federal and Santander. Google Pay introduced by tickets for the official Paris Aeon Credit Service in Japan sightseeing bus service. Wirecard enables use of Chi- na-based payment solutions Again in Japan, Aeon Credit Meanwhile, in Ukraine, Union- at German department store Service has begun a partnership Pay has agreed to work with chain with Google for its Google Pay PrivatBank, the largest commer- service. Customers of Aeon are cial bank in country, to facilitate In Germany, Wirecard has ena- now able to use the Google Pay the acceptance of its cards in the bled the use of Alipay and app to register electronic mon- country. The aim of the agree- WeChat Pay at stores owned by ey, points cards and gift cards, ment is for 60% of POS termi- Breuninger, a department store as well as to manage centrally nals and up to 40% of ATM chain selling fashion and life- their account balances. terminals in Ukraine to accept style products. Breuninger is the ______UnionPay cards by the end of first German department store 2019. The deal capitalises on to offer both of these China- PAYMENT CARD ISSU- China’s importance as Ukraine’s based payment solutions across ANCE AND ACCEPTANCE second-largest trading partner, all of its stores. The rationale for with UnionPay stating that the this tie is the increasing number UnionPay rolls out multiple implementation of the visa-on- of Chinese tourists to Germany initiatives to enhance pres- arrival policy for Chinese citi- as well as their propensity to ence in international mar- zens at the international airport shop for luxury goods. kets… in Kiev had also increased the number of both Chinese tourists JCB enables use of Google UnionPay has rolled out a num- and business visitors to Ukraine. Pay in Japan and Apple Pay ber of new initiatives in the field in Taiwan of card payment acceptance. In Elsewhere in the world, Union- France, it has arrived at an Pay has arrived at similar deals In the Asia-Pacific region, JCB agreement with La Banque Post- for the acceptance of its cards has introduced two new initia- ale whereby its cards will be ac- with a number of banking or- tives aimed at growing its pres- cepted at all of the bank’s ATMs ganisations. These include the ence in the mobile payments and throughout its merchant Postal Savings Bank in Serbia, sector. In Japan, it has an- network. In addition, UnionPay Belarusbank in Belarus, and Tel- nounced that Google Pay users cards will also be accepted at a ered, the largest electronic pay- will be able to make payments range of cultural attractions in- ment network in Panama. on enrolled JCB credit, debit, or cluding the Palace of Versailles, prepaid cards both online and at as well as across the Paris air- … including ones in Canada, Spain convenience stores, supermar- port shuttle bus network and at and Uganda… kets, drugstores and other out- all establishments belonging to Furthermore, in markets such as lets wherever JCB is accepted. the Accor Hotels and Louvre Canada and Spain, where it is In a similar move in Taiwan, it Hotel groups. Furthermore, already active, UnionPay has has streamlined the use of Apple when paying with UnionPay been prolific in improving ac- Pay with JCB cards owned by cards at tourist information cen- ceptance of its cards. In Canada, customers of E.Sun Bank and tres in Paris, cardholders are UnionPay has announced that it the Union Bank of Taiwan. entitled to receive a ticket to the will cooperate with Bank of Chi- Louvre and also to enjoy a dis-

www.finaccord.com 19 Global Affinity Finance Club

… including ones in Canada, Meanwhile, in Uganda, Union- RETAILER CARDS AND FI- Spain and Uganda… Pay announced that it will work NANCE with PostBank, one of the lead- Furthermore, in markets such as ing banks in the country in Synchrony Financial converts Canada and Spain, where it is terms of customer reach, to Belk’s private-label scheme to already active, UnionPay has jointly issue UnionPay cards Mastercard-branded program been prolific in improving ac- with a target of 400,000 by the ceptance of its cards. In Canada, middle of 2021. The implemen- In the US, Synchrony Financial UnionPay has announced that it tation of this card program and Belk, a private department will cooperate with Bank of Chi- marks the entry of UnionPay store chain with around 300 na’s local operations to support into a new country and the com- outlets across 16 states, have card acceptance at all stores pany has stated that the move is launched a new Mastercard- owned by Fengtai Group, a su- in line with increasing invest- branded credit card. The deal permarket chain. UnionPay cit- ment by China-based financial follows 13 years of co-operation ed the move as part of its ex- entities on the African conti- between Belk and Synchrony for pansion strategy in North nent. Globally, by the middle of a private-label store card scheme America, stating that the region 2018, around 100 million Un- tied to Belk’s loyalty program. has grown in popularity ionPay cards had been issued The new Mastercard product amongst Chinese tourists. It also across 48 countries outside of offers the same benefits of its noted that nearly 80,000 POS China. private-label predecessor, with terminals in the US have accept- additional rewards to be gained ed UnionPay mobile phone … with JCB following suit in with every purchase made wher- flash payments, with this figure Brazil and Russia ever Mastercard is accepted. Re- slated to increase to about wards tiers are earned based on 250,000 over the course of On a global scale, JCB has se- annual expenditure at Belk 2018. cured two new deals for the is- stores and cardholders will earn suance and acceptance of its two points for every USD 1 Likewise, in Spain, following an cards. In Brazil, it has linked spent on groceries or petrol. agreement with Banco Coopera- with Caixa Econômica Federal Moreover, for every 1,000 tivo, UnionPay’s acceptance rate to launch the first JCB card in points earned, the cardholder across the country’s ATM ma- Latin America. Cardholders receives USD 10 in Belk Re- chines and POS terminals has benefit from the use of all JCB wards certificates. grown to 90%, and it is expand- airport lounges around the ing its acceptance network to world, as well as exclusive privi- Alliance Data creates private- include all Repsol gas stations in leges in Brazil such as a monthly label card program for Appli- the country. In a similar vein, fee waiver for Grubster, a res- ances Connection UnionPay is co-operating with taurant discount site. Moreover, Standard Bank, one of the larg- in Russia, Far Eastern Bank has Also in the US, Alliance Data est banks on the African conti- announced that it will start ac- has signed a new agreement to nent, to grow the use of its cepting JCB cards on its ATM operate a private-label credit cards across ten countries in- network and at POS terminals, card for Appliances Connection, cluding Ghana, Kenya, Namibia which respectively number more an online retailer of appliances and Tanzania. than 4,000 and over 300. and home furnishings that was ______originally founded in 2011 in

www.finaccord.com 20 Global Affinity Finance Club

New York. Under the terms of GENERAL Extended Warranties for New the new agreement, Alliance Da- and Used Cars in Latin America ta will create a loyalty-driven Alior Bank, Mastercard, Raisin card program for the retailer’s and solarisBank work together Global Expatriates: Size, Seg- shoppers and will also imple- for launch of new digital bank mentation and Forecasts for the ment marketing campaigns for Worldwide Market the card program that are de- With an initial focus on Germa- Home Emergency Insurance signed to drive brand loyalty and ny, Alior Bank (a Poland-based and Assistance in Europe sales. In addition, Alliance Data bank), Raisin (a pan-European will administer a seamless card online marketplace for savings Home Emergency Insurance application process and enable deposits) and solarisBank (a and Assistance in Spain cardholders to redeem rewards provider of banking technology) and pay with the new card. have combined to launch a digi- Insurance and Assistance linked tal bank in the fourth quarter of to Payment Cards and Bank Ac- Barclaycard combines with 2018. The new venture will in- counts in Australia Toolstation and Travis Per- volve Alior Bank delivering mul- kins for new co-branded busi- ti-currency accounts with inter- Insurance and Assistance linked ness card national transfers and deposits to Payment Cards and Bank Ac- while Raisin will use its network counts in the USA In the UK, Barclaycard has of partner banks to add a host Manufacturer-Branded and launched a new co-branded of savings and investment op- Dealer-Intermediated Motor business credit card aimed at tions, and solarisBank will pro- Insurance and Road Assistance small businesses in partnership vide the banking infrastructure in the Asia-Pacific Region with both Toolstation, an online with its technological, compli- retailer of tools, and Travis Per- ance and regulatory framework. Mobile Metrics: Consumer Ap- kins, a Northampton-based Moreover, a benefit optimisa- proaches to Mobile Gadget and builders’ merchant and retailer tion program developed by Mas- Phone Insurance in Selected of home improvement products. tercard will be employed to of- Global Markets This is a no-fee card that in- fer additional value-added ser- cludes an interest-free credit vices. Over time, the partners Mobile Metrics: Consumer Ap- period of up to 116 days for all aim to offer this proposition to proaches to Mobile Gadget and purchases made at Toolstation customers in other EU coun- Phone Insurance in the UK and Travis Perkins, and up to 56 tries. days of interest-free credit on Prepaid Service Contracts for purchases made at other retail- Recently published reports New and Used Vehicles in the ers where the card is accepted. Asia-Pacific Region ______Commercial Non-Life Insurance in the USA: Size, Segmentation Retailer Consumer Finance and Payment Cards in Europe and Forecast to 2021

Consumer Automotive Finan- Retailer Consumer Finance and

cial Services in Brazil Payment Cards in Germany

Creditor and Lifestyle Protec- Road Assistance in Brazil

tion Insurance in Canada

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Organisations in this issue

+Simple, 6 ERV, 10 Moderna Försäkringar, 8, 9 Auto1, 14 E.Sun Bank, 19 Multiasistencia, 5 Achmea, 11 esure, 8 New Oriental Education Group, 16 Aeon Credit Service, 19 Etsy, 17 Nexi, 18 Aetna International, 7 Europ Assistance, 5, 6, 9 Nobis Filo Diretto, 12 Alior Bank, 21 Extrabanca, 12 PayPal, 16, 18 Alliance Data, 20, 21 Fairfax Financial, 11 PostBank, 20 Allianz, 8, 9, 12, 14 Far Eastern Bank, 20 Post Bank, 18 Allianz Global Assistance, 9 FCA Bank, 14 Postal Savings Bank, 19 Allianz Partners, 5, 9 Fengtai Group, 20 PrivatBank, 19 American Express, 15 Fred Segal, 18 PSI-Pay, 17 ANZ, 12 Friendsurance, 7 Orient Corporation, 15 Apple, 18, 19 Garmin, 18 Ottonova, 7 Appliances Connection, 20 Generali, 9, 10, 12 PICC, 12 APRIL, 8 Geoswift, 17 Raisin, 21 ARAG, 5, 6 GoBank, 15 Renault, 6 Aston Martin, 14 Google, 19 Samsung, 18, 19 AXA, 8 Gothaer, 5 Sberbank, 15 Babylon, 7 Gras Savoye, 6 Signal Iduna, 7 Banco Cooperativo, 20 Grohe, 5 SoftBank, 15 Bank of China, 16, 20 Groupe BPCE, 17 solarisBank, 21 Bankia, 17 HanseMerkur, 10 Standard Bank, 20 Barclaycard, 21 Homelyfe, 5 Sumitomo Life, 7 Beauty Bay, 16 Humanis, 7 Sumitomo Mitsui Card Company, 15 Belarusbank, 19 ICBC, 12 Suplicy Cafés Especialidades, 18 Belk, 20 ICE, 6 Swoon, 16 BNP Paribas, 12 ICEA LION, 6 Synchrony Financial, 16, 20 Bupa, 7 Indosat, 16 Telered, 19 BW-Bank, 18 International SOS, 6 Tencent, 11 Caixa Econômica Federal, 20 Intesa Sanpaolo, 14 The Co-operative Bank, 11 China Life, 11 Itaú Unibanco, 18, 19 Toolstation, 21 China Taiping, 10 Jaguar Land Rover, 14 TransferWise, 17 Cigna, 12 JCB, 16, 19, 20 Travis Perkins, 21 CIMB Niaga Bank, 16 JD.com, 11 Uber, 5, 15 Commerzbank, 18 Kenya Commercial Bank, 13 UniCredit, 12 Cover-More, 10 KILROY International, 10 Unilever, 13 Crédit Agricole Assurances, 11 Klarna, 16, 17 Union Bank of Taiwan, 19 Crédit Agricole Consumer Finance, 17 La Banque Postale, 19 UnionPay, 15, 19, 20 Credito Valtellinese, 11 LeasePlan, 5, 14 Unipol Banca, 18 Ctrip, 10, 15 Legal & General, 9, 11 Urgent.ly, 5, 15 Dacia, 6 Lloyds Banking Group, 14 Vienna Insurance Group, 13 Daisan Bank, 15 LUKOIL Group, 15 Virgin Atlantic, 13 DAS, 9 Luxaviation, 6 Virgin Money, 13 Deutsche Bank, 14 Marriott, 15 Visa, 18 Deutsche Post DHL Group, 8 Mastercard, 13, 18, 20, 21 Volkswagen Insurance Services, 8 Direct Line Group, 8 Matmut, 12 Western Union, 17 ecoPayz, 17 Mazda, 9 Westpac, 13 ELEMENT, 7 MedAire, 6 Wirecard, 19 EMaC, 17 Mercia Underwriting, 6 Zurich, 10 Erste Group, 13 Mitsui Sumitomo, 6

www.finaccord.com 22 Global Affinity Finance Club

About GAFC About Finaccord Does your organisation have The Global Affinity Finance Club is Finaccord is a market research, news about its affinity or Finaccord’s quarterly newsletter publishing and consulting compa- partnership marketing rela- about affinity financial services ny specialising in financial services. tionships that we missed in It is part of Aon Inpoint, Aon Risk worldwide. Through this, Finac- this newsletter? To produce Solutions, a division of Aon plc cord publishes high-level infor- it, we systematically research mation about key strategic devel- (NYSE: AON). We provide our over 350 major financial ser- opments in affinity and partnership clients with insight with a particu- vices institutions from marketing of financial services lar focus on marketing and distri- around the world, segmented be- bution strategies, including affinity around the world each quar- tween affinity insurance news, and partnership marketing. ter. However, if you would bancassurance news and affinity also like us to include your banking news. Our areas of expertise include: af- company in this research, finity and partnership marketing; please send an e-mail to in- This service differs from that pro- automotive financial services; [email protected] and we vided by other research companies bancassurance; commercial non- will ensure that it is tracked because its focus is genuinely glob- life insurance brokers; consumer in future quarters. al, often translating news that only intelligence; creditor insurance; appears in languages other than distribution channels; energy and To access the archive of news English. In addition, it concen- power insurance; extended warran- from the Global Affinity Fi- ties; home emergency insurance trates exclusively on affinity and nance Club please visit and assistance; insurance and assis- partnership marketing strategy. www.finaccord.com/afi Affinity and partnership marketing tance linked to payment cards and strategy is an important compo- bank accounts; mobile gadget and nent of general distribution strate- phone insurance; retailer financial gy for a majority of large banks and services; road assistance; small insurance companies serving con- business financial services; and sumers and small businesses, as travel insurance and assistance. successful partnerships potentially allow them to access groups of © Finaccord, 2018 customers that they cannot always reach by themselves. The Office Farringdon 24 Greville Street If you would like to join Finac- London, cord’s Global Affinity Finance Club, EC1N 8SS contact us by telephone or send us an email to [email protected]. Phone: +44 20 3178 2556 Thereafter, each quarter, we will Email: [email protected] send you a link to the page of our www.finaccord.com website with fresh news and future editions of this document.