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More information from http://www.researchandmarkets.com/reports/1194872/




Affinity and Partnership Marketing in UK Credit Cards and Personal
Loans

Description:    Finaccord's report titled Affinity and Partnership Marketing in UK Credit Cards and Personal Loans
                represents the most detailed research ever undertaken on this sector and is one of seven studies in
                a new series of publications. Drawing on the results of a survey of 2,500 organisations, the report
                analyses the penetration, operating models and partner market shares of affinity and partnership
                marketing schemes for credit cards and personal loans across a range of distributor categories.
                These include airlines, automotive manufacturers, charities, educational institutions, football clubs,
                Internet, media and telecoms entities, on-line aggregators and brokers, professional associations,
                retailers and trade unions. Moreover, the PartnerBASE™ database that accompanies the report
                provides the granular detail behind the analysis, detailing each of the more than 650 affinity and
                partnership marketing initiatives traced by Finaccord in this sector.

                You may be able to use this report and associated PartnerBASE™ database in one or more of the
                following ways:

                - drill down into the detail lying behind affinity and partnership marketing schemes for credit cards
                and personal loans in the UK;
                - gain access to research that chronicles the vast majority of affinity marketing opportunities in
                credit cards and personal loans;
                - benchmark the competitive position of your own organisation in affinity and partnership
                marketing of credit cards and personal loans and spot opportunities for displacing rivals;
                - gain a wider perspective from learning about recent innovations in partnership marketing of
                banking products in continental Europe and Ireland;
                - plan your future affinity and partnership marketing strategy for credit cards and personal loans
                armed with the best market and competitor intelligence available on this subject.

                Together, the report and PartnerBASE™ database will provide you with the definitive guide to
                current and potential affinity and partnership marketing opportunities in UK credit cards and
                personal loans.



Contents:       0.0 EXECUTIVE SUMMARY
                Research background and structure
                A wide range of partner organisations are involved in schemes for affinity or co-branded cards
                The majority of issuers active in this area are focusing on a small number of major partnerships
                … although MBNA’s approach is oriented towards managing a large number of small programs
                The comp. to promote personal loans through affinity and other partners is highly fragmented…
                … with Lloyds TSB, mainly thanks to Black Horse Finance, identifiable as the leading partner
                Both Barclaycard and GE Money have adapted well to the changing market for co-branded cards
                The agg. and price comparison channel offers a major challenge to providers of affinity loans
                There is scope for banking institutions in the UK to draw inspiration from continental Europe

                1.0 INTRODUCTION
                Finaccord
                UK affinity and partnership marketing publications
                Other UK consumer research publications
                PartnerBASE™
                Definitions
                Rationale
                The channels used to distribute financial products and services in the UK continue to proliferate
                … with on-line affinity and partnership marketing having growing rapidly in importance of late
                Methodology

                2.0 MARKET OVERVIEW
                Affinities and partnerships in UK credit cards and personal loans
Finaccord’s research identifies 400 current affinity schemes for promoting credit cards…
… with MBNA’s operating model oriented towards managing a large number of card programs
… while other issuers are preferring to focus on a relatively small number of major partnerships
Personal loans are marketed by at least a proportion of 24 affinity and partner sub-categories
… with the competition for partnerships fragmenting among a variety of types of provider

3.0 NOT-FOR-PROFIT AFFINITY GROUPS
3.1 Charities
Introduction
Analysis of partnerships
The competitive structure of the UK charity card market has changed substantially
Few charities have organised formal affinity lending propositions for their supporters
intune’s main target market is the affluent over-50 age group served by Saga
… and the company is interested in working with suppliers that fulfil a variety of criteria
intune is employing a multi-channel distribution strategy including the charity’s high street outlets
… as it seeks to reach an operating profit of £15 million per annum by 2012
3.2 Educational institutions
Introduction
Analysis of partnerships
Affinity and partnership marketing through educational institutions focuses on three main areas
A significant number of educational institutions have discontinued affinity cards in recent times
3.3 Professional associations
Introduction
Over 50 professional associations possess in excess of 5,000 individual members
Analysis of partnerships
American Express has cherry-picked the affinity card offered by the British Medical Association
In many cases, brokers can unlock the door for lenders targeting professional associations
… with Parliament Hill having expanded its roster of member benefits clients to 11 associations
A further five entities each claim to more than one deal in the professional association segment
FIRSTPLUS Financial provides loans to the members of the Navy, Army and Air Force Institutes
3.4 Sports organisations
Introduction
Analysis of partnerships
MBNA accounts for the majority of affinity cards issued in partnership with sports organisations
3.5 Trade associations
Introduction
Analysis of partnerships
Trade associations play virtually no part in the distribution of personal loans and credit cards
3.6 Trade unions
Introduction
Analysis of partnerships
HBOS controls the majority of relationships primarily by virtue of its central deal with the TUC
… while LV= is the leading supplier of personal loans to the members of trade unions
3.7 Other not-for-profit affinity groups
Introduction
Lifestyle organisations
Four lifestyle organisations continue to promote an affinity card to members…
Political parties
… with a similar number of political parties offering affinity cards or loans

4.0 FINANCIAL PARTNERS
4.1 Banks
Introduction
Analysis of partnerships
Abbey has reverted to managing its own credit card business having previously used MBNA
Customers who fail to qualify for a standard loan are often referred to credit broking partners
4.2 Building societies
Introduction
Analysis of partnerships
Four entities are active in the market for affinity credit cards issued through building societies
The Britannia promotes both its own loans and also car finance products sourced from Freeway
4.3 Credit unions
Introduction
At least two credit unions are distributing the pre-paid Argos Acard to their members
4.4 Friendly societies
Introduction
Analysis of partnerships
LV= has switched management of its credit card from its own banking division to Goldfish Bank
4.5 Insurance companies
Introduction
Analysis of partnerships
Among insurance companies, only NFU Mutual and Norwich Union offer white-labelled loans
4.6 On-line aggregators and brokers
Introduction
Moneysupermarket.com and The Motley Fool have each established significant partnerships
… for the provision of searching facilities for both credit cards and personal loans
4.7 Specialised lenders
Introduction

5.0 COMMERCIAL ENTITIES
5.1 Airlines
Introduction
Analysis of partnerships
Ryanair drops MBNA in favour of GE Capital Bank while flybe chooses LaSer UK
5.2 Automotive associations
Introduction
Analysis of partnerships
Morgan Stanley’s Goldfish issues affinity cards on behalf of both the Caravan Club and csma
5.3 Automotive dealers, repair shops and supermarkets
Introduction
Analysis of partnerships
Many automotive dealerships owe their survival to revenues derived from financial services
… and a majority of firms in this category have created group-wide finance and leasing deals
5.4 Automotive manufacturers
Introduction
Analysis of partnerships
The card developed by American Express and BMW is a significant new move in this sector
The new products are designed to re-enforce customer loyalty to the BMW brand
BMW’s affinity marketing partners were selected for three main reasons
All but a small number of niche or motor cycle brands have established official finance schemes
Fiat Auto Financial Services and GMAC are now classifiable as joint venture companies
5.5 Cricket and rugby clubs
Introduction
Analysis of partnerships
Only Bank of Ireland disturbs MBNA’s dominance in the cricket and rugby club affinity card sector
78
Through its Black and White Connections concept, Hull R.F.C. offers consumer finance options....79
5.6 Football clubs
Introduction
Analysis of partnerships
MBNA continues to be the dominant force in the market for football club affinity cards
… although Barclaycard plays a trump card by means of its successful Premiership Card
Few football clubs have elected to endorse a specific provider in the field of personal loans
… although Zebra Finance claims to be ‘recognised and endorsed’ by around 30 clubs in total
5.7 Internet, media and telecoms entities
Introduction
Analysis of partnerships
The market segments between traditional affinity cards and credit card searching facilities
Five providers have established more than one on-line credit card searching deal each
A number of factors motivated the launch of the SkyCard by Barclaycard and BSkyB…
… and the program fits well with the issuer’s wider strategy of focusing on ‘blockbuster’ deals
The two partners are aiming for 20% penetration within the relevant customer base by 2010
Moneysupermarket.com and Moneyexpert.com account for a majority of media affinities
… although AWD Moneyextra is one of a number of players that is also exploring this arena
5.8 On-line price comparison providers
Introduction
Analysis of partnerships
A number of on-line price comparison providers offer own-brand credit card searching facilities
… with a similar number also having initiated activities in the field of personal loans
5.9 Retailers
Introduction
Analysis of partnerships
Over a third of major retailers in the UK have introduced their own co-branded or store cards
GE Capital Bank is the leading specialist issuer of retailer cards in the UK market
HSBC has significantly strengthened its competitive position in the retailer card market
… and the card issuing divisions of several other banks also lay claim to notable relationships
Citibank entered the sector in 2007 by means of a co-branded card developed with Shell
GE Capital Bank has engineered an impressive re-positioning of the ASDA co-branded card
… with the result that the majority of the card’s key metrics have improved dramatically
The majority of retailers that offer point-of-sale finance work with a single, external partner
Lloyds TSB’s Black Horse Finance lays claim to the highest number of exclusive relationships
… although competition for retailer mandates is offered by a further six main finance providers
A single, exclusive retailer partnership can be attributed to each of four lending institutions
5.10 Travel companies
Introduction
Analysis of partnerships
Excluding airlines, very few travel companies have developed co-branded credit cards
… although the launch of the OnePulse Card in July 2007 adds up to an innovative development
5.11 Other commercial entities
Introduction
Branded conglomerates
Saga and Virgin leverage their brands across the full consumer financial services spectrum
… with Saga having switched its co-branded credit card to AIB towards the end of 2007
Loyalty schemes
The loyalty schemes category extends to a range of diverse travel and other reward programs
… with several offering members the chance to earn points through taking out personal loans
… and with six schemes having developed or re-launched fully-fledged co-branded credit cards
AIRMILES reconfigures its affinity strategy by forging a new link with Lloyds TSB
Delivering memorable experiences continues to be key to the AIRMILES proposition
Lloyds TSB hopes to leverage the relationship across a range of financial services
AIRMILES has bolstered its range of family-oriented redemption options
… and is also in the process of rolling out a policy asserting its ‘green’ credentials
The Post Office
The Post Office has extended its financial services joint venture with Bank of Ireland to 2020

6.0 EUROPEAN INNOVATIONS
Introduction
Events in affinity and partnership marketing in Europe, 2006 and 2007
Winter 2006
Citibank unveils new affinity marketing ventures in Belgium and the Czech Republic
UBS launches Swiss charity card with Optimus Foundation
Banque Accord’s Oney.fr links with on-line hi-tech retailing specialist in France
Bank of Ireland ties with La Caixa for Irish consumers buying property in Spain
BPU Banca launches InItaly immigrant financial services proposition
CreditPlus Bank signs distribution deal with Bertelsmann book club in Germany
Deutsche Postbank targets lawyers through legal publishing affinity card
American Express unveils new bank partnerships in Romania and Russia
Cetelem forms consumer finance joint venture with French building firm
San Paolo IMI and Veneto Banca tie up commercial affinity group deals in Italy
Spring 2006
CC Bank and Lidl tie for credit card with petrol discount offer in Germany
ABN AMRO creates partnership with Dorpspunt to grow rural penetration
Fiditalia and leading technology distributor tie for consumer finance and card proposition
Banque Accord and Norauto extend collaboration to private label card
American Express enters Bosnia-Herzegovina through card issuing deal with CFU
Grupo Santander initiates affinity banking link with parliamentary association
Through AUTOSCOUT24, Volkswagen secures on-line partner for financial services
Banca Intesa and eBay collaborate to target over 500,000 Italian SMEs
LaSer introduces new affinity cards with automotive repair centre and football club
Millennium BCP seals affinity link with economists’ institute in Portugal
CIC establishes tie with OSEO for start-up and small business loans in France
Juventus and Banca Popolare Italiana launch pre-paid Kalibra card
Summer 2006
Citibank rolls out new airline co-branded credit cards in the Czech Republic and Hungary
American Express expands network of banking partners to Serbia and Slovakia
CGD creates affinity banking deal with Portuguese economists
Finaref introduces private label card in association with Téléshopping
Banca Intesa works with local authority for mortgage designed for temporary workers
GE Money Bank ties for on-line finance deal with German arm of Fujitsu Siemens
Crédit Agricole links for European automotive finance joint venture with Fiat
Groupe Caisse d’Epargne and Carige forge Italian consumer credit joint venture
Autumn 2006
Citibank rolls out new co-branded cards in Greece and Sweden
Commerzbank launches co-branded card with Steigenberger Hotel Group
Through GCE Fidélisation, Caisses d’Epargne signs up to S’Miles loyalty scheme
HSBC ties with Banco Sabadell unit to serve UK nationals residing in Spain
Fortis and An Post finalise details of Irish financial services joint venture
Rabobank and WNF unveil green affinity credit card in the Netherlands
MLP forges affinity financial services link with association of dental students in Germany
Winter 2007
Citibank launches new co-branded credit cards in Greece and Hungary
Landesbank Berlin links with Amazon for co-branded card in Germany
BBVA’s Barceló Viajes Visa credit card amasses 60,000 clients since launch
Santander rolls out affinity banking strategy for affluent foreign nationals
Banco Sygma forges loan distribution link with Spanish insurer
Spring 2007
LaSer Group initiates a trio of new affinity ventures in France and the Netherlands
GE Money Bank and Kia partner for automotive finance joint venture in Germany
Citibank and Shell introduce co-branded card in Denmark
Deutsche Bank ties with pharmacy chain for German consumer credit venture
Landesbank Berlin introduces two new co-branded cards with media affinities
UEFA EURO 2008 MasterCard launched by UBS in Switzerland
Crédit Agricole and OSEO strengthen partnership to serve French SMEs
Summer 2007
CGD introduces co-branded card in association with MTV for Portuguese youth
… inspired by Caja Madrid’s successful program with the same partner in Spain
Caja Madrid launches Aquí-Allá debit card for immigrant market in Spain
Finaref introduces Madelios private label card with single outlet retailer in France
BNP Paribas ties with nine regional mutual insurers serving students
Citibank launches Russian travel co-branded card through link with Kuda.ru travel agency
… and ties with EKO Natural Gas for affinity loans in Greece
Monte dei Paschi di Siena renews link with Enel to encourage solar power systems
Agos and Piaggio form relationship for branded motor cycle finance in Italy
Banesto concludes affinity financial services partnership with UNICEF in Spain
CreditPlus Bank links with T-Online for Internet lending initiative in Germany
Commerzbank creates on-line marketing tie with German arm of eBay
Landesbank Berlin introduces new co-branding schemes with media affinities
GE Money Bank launches new credit card with leading German technology retailer
MLP and Interhyp establish mortgage joint venture in Germany
Autumn 2007
LaSer reinforces co-branding activity in France through launch of flagship card
BNP Paribas and Orange combine for co-branded card in deregulated French market
Go Sport France selects Finaref as partner for financial services development
American Express secures Kazakh and Lithuanian bank partnerships
Citibank introduces new co-branded card with prominent Belgian electricals retailer
BNL and Intesa Sanpaolo enter into affinity lending deals for Italian pensioners
Santander ties with Portuguese SME trade association for affinity banking package
Nordea acquires Stockmann financial services business and targets international expansion
Bankinter assumes control of Capital One joint venture with 290,000 customers
Fiditalia and Zurich launch new revolving co-branded credit card in Italy
Hypovereinsbank’s FC Bayern SparKarte exceeds 150,000 cards in circulation
BAWAG PSK injects new momentum into post office bank through a raft of innovations
GRAPHICS / TABLES

The affinity and partnership marketing universe
Entities contacted for the research, segmented by broad category
Affinity and partnership marketing schemes for accident insurance in the UK: penetration by type of
partner
Affinity and partnership marketing schemes for accident ins. in the UK: segmentation by op. model
and comp.
Affinity and partnership marketing schemes for health insurance in the UK: penetration by type of
partner
Affinity and partnership marketing schemes for health ins. in the UK: segment. by op. model and
competitor
Charities offering credit cards: penetration, operating models and partner market shares
Charities offering personal loans through partnerships
Educational institutions offering credit cards: penetration, operating models and partner market
shares
Ranking of professional associations in the UK by actual or approximate number of members
Professional associations offering credit cards: penetration, operating models and partner market
shares
Sports organisations offering credit cards: penetration, operating models and partner market
shares
Sports organisations offering personal loans through partnerships
Ranking of the top 50 trade associations in the UK by actual or approximate number of members
Trade associations offering credit cards through partnerships
Ranking of trade unions in the UK by actual or approximate number of members
Trade unions offering credit cards: penetration, operating models and partner market shares
Trade unions offering personal loans: penetration, operating models and partner market shares
Lifestyle organisations offering credit cards and personal loans through partnerships
Political parties offering credit cards and personal loans through partnerships
Banks offering credit cards: penetration, operating models and partner market shares
Banks offering personal loans through partnerships
Building societies offering credit cards: penetration, operating models and partner market shares
Friendly societies offering credit cards through partnerships
Insurance companies offering personal loans through partnerships
On-line aggregators and brokers offering credit cards: penetration, operating models and partner
market shares
On-line aggregators and brokers offering personal loans: penetration, op. models and partner
market shares
Specialised lenders offering personal loans through partnerships
Airlines offering credit cards: penetration, operating models and partner market shares
Automotive associations offering credit cards and personal loans through partnerships
Auto. dealers, repair shops and supermarkets offering personal loans: pen., op. models and partner
mkt. shares
Automotive manufacturers offering credit cards: penetration, operating models and partner market
shares
Automotive manufacturers offering personal loans: penetration, operating models and partner
market shares
Cricket and rugby clubs offering credit cards: penetration, operating models and partner market
shares
Cricket and rugby clubs offering personal loans through partnerships
Football clubs offering credit cards: penetration, operating models and partner market shares
Football clubs offering personal loans: penetration, operating models and partner market shares
Internet, media and telecoms entities offering credit cards: penetration, op. models and partner
market shares
Internet, media and telecoms ents. offering personal loans: penetration, op. models and partner
market shares
On-line price comparison providers offering credit cards: penetration, op. models and partner
market shares
On-line price comparison providers offering personal loans: penetration, op. models and partner
market shares
Retailers offering credit / store cards: penetration, operating models and partner market shares
Retailers offering personal loans / consumer finance: penetration, operating models and partner
            market shares
            Travel companies offering credit cards through partnerships
            Branded conglomerates offering credit cards and personal loans through partnerships
            Loyalty schemes offering credit cards and personal loans through partnerships



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