Affinity and Partnership Marketing in Payment Cards and Consumer Finance in Germany

Published by	Finaccord Ltd.
Published	January, 2009	Product code	81681
Content info	100 Pages
Price	US $ 1995 PDF By E-mail + Excel database (Single Office license) US $ 2394 PDF By E-mail + Excel database (License for multi-office in one country) US $ 2992.50 PDF By E-mail + Excel database (License for multi-office within 2-10 countries) US $ 3990 PDF By E-mail + Excel database (Global License - unlimited users)

Introduction
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Affinity and Partnership Marketing in Payment Cards and Consumer Finance in Germany published by Finaccord Ltd. in January, 2009. This report consists of 100 Pages and the price starts from US $ 1995.

Introduction

Abstract

Finaccord' s report titled Affinity and Partnership Marketing in Payment Cards and Consumer Finance in Germany represents the most detailed research ever undertaken on this sector and is one of five studies in a new series of publications. Drawing on the results of a survey of over 1,900 organisations, the report analyses the penetration, operating models and partner market shares of affinity and partnership marketing schemes for payment cards and consumer finance across a range of distributor categories. These include airlines, automotive associations and clubs, automotive manufacturers, charities, football clubs, Internet, media and telecoms entities, loyalty schemes, online aggregators and brokers, professional associations, retailers, trade unions and utilities companies. Moreover, the PartnerBASE database that accompanies the report provides the granular detail behind the analysis, detailing each of over 380 affinity and partnership marketing initiatives traced by Finaccord in this sector. In the context of this report, coverage of payment cards includes examples of affinity and co-branding initiatives for debit cards and prepaid cards as well as revolving credit cards and deferred debit cards. In a similar vein, the term ' consumer finance' refers to lending products offering to individual borrowers other than mortgages and credit linked to credit cards. As such, it embraces car finance and leasing schemes in addition to both secured and unsecured personal loans. 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 payment cards and consumer finance in Germany; - gain access to research that chronicles the vast majority of affinity marketing opportunities in payment cards and consumer finance; - benchmark the competitive position of your own organisation in affinity and partnership marketing of payment cards and consumer finance and spot opportunities for displacing rivals; - gain a wider perspective from learning about recent innovations in partnership marketing of payment cards and consumer finance elsewhere in Europe; - plan your future affinity and partnership marketing strategy for payment cards and consumer finance 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 payment cards and consumer finance in Germany.

0.0 EXECUTIVE SUMMARY

Research background and structure
There is no shortage of programs for affinity and co-branded payment cards in Germany and plenty of card issuers are active in this arena an observation that can also be made in relation to the market for consumer finance and
personal loans in which Santander has been able to establish a clear leadership position
The German market for affinity and co-branded payment cards is characterised by contradictions
Supermarkets and other retailers add up to the most promising partner category for consumer
finance
German card issuers may be able to draw some inspiration from developments elsewhere in
Europe

1.0 INTRODUCTION

Rationale
- The channels used to sell financial products and services in Germany are proliferating with online affinity and partnership marketing having growing rapidly in importance of late
Finaccord
- Affinity and partnership marketing publications for Germany
- Consumer research publications for Germany
PartnerBASE"!
Definitions
Methodology

2.0 MARKET OVERVIEW

Affinities and partnerships in payment cards and consumer finance
- Finaccord' s research identifies 153 current affinity schemes for promoting payment cards with the great majority being organised in conjunction with a single, external issuer and with MasterCard and Visa exerting more or less equal influence on the market
- Consumer finance is marketed through a wide variety of partner categories with the competition for partnerships fragmenting among a variety of types of provider

3.0 NOT-FOR-PROFIT AFFINITY GROUPS

3.1 Automotive clubs
- Introduction
3.2 Charities
- Introduction
- Analysis of partnerships
- Affinity credit cards launched in partnership with charities have enjoyed mixed fortunes although there are several very large charities that have not yet introduced affinity cards
3.3 Educational institutions
- Introduction
- Analysis of partnerships
- Dresden International University is a pioneer in offering personal loans to its students
3.4 Professional associations
- Introduction
- Analysis of partnerships
- Affinity credit cards are offered by a small minority of professional associations in Germany
- Deutsche Apotheker- und Arztebank has several partners in the area of consumer lending
3.5 Sports organisations
- Introduction
- Analysis of partnerships
- A handful of sports organisations have developed an affinity payment card although several initiatives in this field have proved to be unsuccessful
3.6 Trade associations
- Introduction
- Analysis of partnerships
- Several trade associations have developed affinity payment cards on behalf of members
- The market for offering personal loans in conjunction with trade associations is fragmented
- Some trade associations are planning future involvement in this area
3.7 Trade unions
- Introduction
- Analysis of partnerships
- Deutsche Kreditbank and PSD-Bank both manage a pair of trade union affinity cards
- The dbb beamtenbund und tarifunion is an important affinity partner for DSL Bank
3.8 Lifestyle organisations
- Introduction
- Analysis of partnerships
- Two lifestyle organisations promote an affinity card to members

4.0 FINANCIAL INSTITUTIONS

4.1 Banks
- Introduction
- Analysis of partnerships
- SWK Bank has established itself as an attractive affinity partner for consumer finance
4.2 Savings and public sector banks
- Introduction
- Analysis of partnerships
- SWK Bank provides rapid online consumer lending facilities for several savings banks
- BW Bank elected to outsource its consumer finance activity to CreditPlus Bank in April 2008
- 4.3 Co-operative banks
- Introduction
- Analysis of partnerships
- TeamBank serves many co-operative banks with its easyCredit concept making it difficult for other providers of consumer finance to penetrate this sector
4.4 Insurance companies
- Introduction
- Analysis of partnerships
- Santander is the most prolific issuer of co-branded cards with insurance companies
- A number of insurance brands also offer consumer finance facilities to their customers
4.5 Online aggregators and brokers
- Introduction
- Analysis of partnerships
- ecredit possesses the most partnerships in this category for online consumer loans
4.6 Private banks
- Introduction
- Analysis of partnerships
- Bankhaus Dr. Masel collaborates with AXA for its consumer finance proposition

5.0 COMMERCIAL ENTITIES

5.1 Airlines
- Introduction
- Analysis of partnerships
- Lufthansa' s co-branded card program ranks among the most widely held in Germany
- Although it has been considered, Ryanair has yet to introduce a co-branded card
5.2 Automotive associations
- Introduction
- Analysis of partnerships
- Three of the larger automotive associations possess co-branded card programs and ADAC offers an affinity car finance product in association with Volkswagen Bank
5.3 Automotive dealership groups
- Introduction
- Analysis of partnerships
- The provision of financial services is for automotive dealers an important part of overall revenue
- Most of the dealership groups included in the survey offer finance to their customers
- Santander is the chosen partner for consumer finance for several major groups although other finance providers also lay claim to centrally negotiated contracts
5.4 Automotive manufacturers
- Introduction
- Analysis of partnerships
- A significant number of automotive manufacturer brands offer co-branded cards with several issued in association with their own captive banks
- All but a small number of niche brands have established their own finance schemes
- Santander is the leading partner among manufacturers not using captive banks and will begin collaborating with Mazda from the beginning of 2009
- Fiat Bank and GMAC Bank are both classifiable as joint venture finance companies
5.5 Estate agents
- Introduction
5.6 Football clubs
- Introduction
- Analysis of partnerships
- Payment card affinity partnerships can be found in all three top German leagues.
- VfB Stuttgart will pioneer PayPass technology in Germany in early 2009
- Deals for affinity credit cards are spread thinly between competing card issuers
- Affinity debit cards have sometimes been developed in association with local banks
- Football clubs in Germany remain reluctant to endorse specific providers of personal loans
5.7 Internet, media and telecoms entities
- Introduction
- Analysis of partnerships
- The market segments between traditional affinity cards and credit card searching facilities
- Landesbank Berlin is the leading partner for co-branded cards in the media sector although several other issuers have attempted to make headway in this arena
- Pre-paid cards are also a fairly widespread co-branding product among media partners
- Numerous entities in the Internet, media and telecoms category market personal loans with a variety of operating models and partnerships in evidence
5.8. Online price comparison providers
- Introduction
- Analysis of partnerships
- Partnership marketing activity remains limited among online price comparison providers
5.9. Retailers
- Introduction
- Analysis of partnerships
- A significant number of co-branded and private label payment cards are in evidence with Santander possessing a number of valuable partnerships with retailers although with a variety of other card issuers also competing for relationships in this sector
- Over a third of the retailers surveyed offer some form of consumer credit
- Santander is the undisputed leader in the German market for consumer finance with relationships with retailers spread quite thinly among other competitors
- A handful of retailers offer leasing options instead of or in addition to consumer loans
- Under the C&A Money brand, C&A hopes to continue launching new products
- EDEKA Bank appears to be growing in excess of the average for Germany
- The brands of Karstadt and Quelle are being leveraged with success in financial services
5.10 Travel companies
- Introduction
- Analysis of partnerships
- Several initiatives for co-branded cards exist in the travel and hotel chain category including programs introduced in recent years by both Oger Tours and Schmetterling
- Golf Tour St. Andrews has changed the issuer of its Golf Fee Card to WGZ Bank
5.11. Utilities companies
- Introduction
- Several utilities firms have made arrangements for offering finance to their customers
- Utilities offering consumer finance or personal loans through partnerships
5.12. Other commercial entities
- Introduction
- Analysis of partnerships
- Deutsche Post: effectively acting as an intermediary of Deutsche Postbank
- American Express: banking operations sold to Standard Chartered Bank in 2008
- Loyalty schemes: among the most attractive partners for co-branded cards
- Consumer technology brands: major organisations offer own-brand consumer finance
- Co-branded payment cards are issued by a very diverse range of organisations with Landesbank Berlin having been particularly imaginative in its choice of partners
- Barclaycard' s German unit has also initiated several less obvious co-branding ventures

6.0 EUROPEAN INNOVATIONS

Introduction
Key events in affinity and partnership marketing in Europe, 2006-8
- Payment cards and consumer finance
- Affinity and partnership marketing initiatives are visible across a diverse range of sectors with a number of specific trends observable amid this activity
- Some of the most successful affinity and co-branded cards are found in Spain and the UK

GRAPHICS / TABLES

The affinity and partnership marketing universe 7
Entities contacted for the research, segmented by broad category 10
Affinity and partnership marketing schemes for payment cards in Germany: penetration by type of partner 14
Affinity and partnership marketing schemes for payment cards in Germany: segmentation by operating model and competitor 15
Affinity and partnership marketing schemes for payment cards in Germany: segmentation by network 16
Affinity and partnership marketing schemes for consumer finance or personal loans in Germany: penetration by type of partner 17
Affinity and partnership marketing schemes for consumer finance or personal loans in Germany: segmentation by operating model and competitor 18
Charities offering payment cards: penetration, operating models and partner market shares 22
Ranking of top 100 professional associations in Germany by approximate number of members 25
Ranking of top 100 professional associations in Germany by approximate number of members (continued) 26
Professional associations offering payment cards: penetration, operating models and partner market shares 27
Professional associations offering consumer finance or personal loans: penetration, operating models and partner market shares 28
Sports organisations offering payment cards through partnerships 30
Ranking of top 100 trade associations in Germany by approximate number of members 32
Ranking of top 100 trade associations in Germany by approximate number of members (continued) 33
Trade associations offering payment cards: penetration, operating models and partner market shares 34
Trade associations offering consumer finance or personal loans: penetration, operating models and partner market shares 36
Trade unions offering payment cards and / or consumer finance or personal loans through partnerships 39
Lifestyle organisations offering payment cards through partnerships 40
Banks offering consumer finance or personal loans through partnerships 43
Savings and public sector banks offering payment cards and / or consumer finance or personal loans through partnerships 46
Co-operative banks offering consumer finance or personal loans through partnerships 48
Insurance companies offering payment cards and / or consumer finance or personal loans through partnerships 51
Online aggregators and brokers offering consumer finance or personal loans through partnerships 54
Airlines offering credit cards: penetration, operating models and partner market shares 58
Automotive associations offering payment cards and / or consumer finance or personal loans through partnerships 60
Automotive dealership groups offering consumer finance or personal loans: penetration, operating models and partner market shares 63
Automotive manufacturers offering payment cards: penetration, operating models and partner market shares 65
Automotive manufacturers offering consumer finance or personal loans: penetration, operating models and partner market shares 67
Football clubs offering payment cards through partnerships 71
Internet, media and telecom entities offering payment cards: penetration, operating models and partner market shares 74
Internet, media and telecoms entities offering consumer finance or personal loans: penetration, operating models and partner market shares 76
Online price comparison providers offering payment cards and / or consumer finance or personal loans through partnerships 78
Retailers offering payment cards: penetration, operating models and partner market shares 80
Retailers offering consumer finance or personal loans: penetration, operating models and partner market shares 82
Travel companies offering payment cards through partnerships 85
Utilities offering consumer finance or personal loans through partnerships 87
Other commercial entities offering payment cards and / or consumer finance or personal loans through partnerships 91
Key events in affinity and partnership marketing in payment cards and consumer finance in Europe, 2006 95
Key events in affinity and partnership marketing in payment cards and consumer finance in Europe, 2006 (continued) 96
Key events in affinity and partnership marketing in payment cards and consumer finance in Europe, 2007 97
Key events in affinity and partnership marketing in payment cards and consumer finance in Europe, 2008 98
Key events in affinity and partnership marketing in payment cards and consumer finance in Europe, 2008 (continued) 99