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Affinity or co-branded cards

A partnership between a bank card issuer and a non-profit, social or lifestyle association is what results in an affinity card. This is designed basically to provide financial rewards to the group or association. eg- each time the Citibank WWF Visa card is used, the bank will automatically donate a percentage of that retail transaction to the World Wildlife Fund for its environmental conservation activities. This card has no monetary value to the cardholder though it helps to ease his conscience.

A sample of current affinity cards are: Citibank WWF card (Citibank and World Wild Life Fund), Diners Club Modernite (Diners and Modern School Old Students Association), Citibank Women's card (Citibank and Society for Promotion of Area Resource centers: SPARC and Friends of Women's World Banking: FWWB), Cricket Card (Stanchart and BCCI).

A partnership between a bank card issuer and a commercial partner results in a co-branded card, which makes more economic sense for a cardholder. The advantage in using such cards is that you stand to win prizes, freebies or discounts on co-branded products for clocking up points in spending. Co-branding makes use of the brand strength of both partners. It is based on the logic that if a customer is loyal to one brand, he will want to purchase the other. Each co-branded partner gets access to a database of customers of a typical demographic profile.

Current co-branded deals exist between HSBC and Shoppers Stop, Bank of India and Bharat Petroleum, Citibank and Indian Oil Corporation, Citibank and Philips, Citibank and Maruti Udyog Diners and Bristish Airways, Stanchart and Mahindra & Mahindra, Stanchart and Aviance, Bank of India and Taj Group of Hotels.

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