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United Commercial Bank & El Banco

United Commercial Bank and El Banco both target ethnic communities for their customer base. [1] United Commercial Bank targets the Chinese-American community, focusing on financial stability and offering savings accounts, CDs, and business loans. [2] El Banco targets the Hispanic community, relying on bank fees as a source of revenue and using a franchise model with informal storefronts. [3] The banks differ in their operating strategies, service concepts, and delivery systems to meet the unique needs of their target market segments.

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422 views8 pages

United Commercial Bank & El Banco

United Commercial Bank and El Banco both target ethnic communities for their customer base. [1] United Commercial Bank targets the Chinese-American community, focusing on financial stability and offering savings accounts, CDs, and business loans. [2] El Banco targets the Hispanic community, relying on bank fees as a source of revenue and using a franchise model with informal storefronts. [3] The banks differ in their operating strategies, service concepts, and delivery systems to meet the unique needs of their target market segments.

Uploaded by

PULKIT CHAUHAN
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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United Commercial Bank & El Banco

GROUP 6
Introduction to the Case
● The strategic service vision entails four pillars, which consist of target
market segment, service concept, operating strategy, and service
delivery system.
● In essence, the pillars are utilized to improve or modify current services.
● The first pillar, target market segment is essentially the discovery stage.
● The point of this stage is to determine whom the company is serving
and to whose needs their product needs to be tailored.
● Some contributing factors in determining the target include
demographics, psychographics, and other important characteristics.
Introduction to the Case
● In the case of United Commercial Bank, their main target market is clear, the
Chinese American community, which is focused on financial stability and soundness.
● The bank’s mission statement even attempts to attract customers by stating that the
company’s ultimate goal is to aid families and businesses in achieving their
American Dream.
● On the other hand, El Banco de Nuestra Comunidad focuses on luring in Hispanic
clients.
● Some competitors that UCB faces in the Asian community are East West Bancorp,
Nara Bancorp, Cathay General Bancorp, and Wilshire Bancorp.
Introduction to the Case
● As previously mentioned, the Chinese American community is very focused on
financial stability.
● In order to defeat their competition, the UCB attempts to meet their standards by
offering savings accounts and CDs with high rates, attractive business loans for real
estate transactions, and features to facilitate import and export businesses, which are
common among Asian Americans, and low and sometimes refundable bank fee that
keep the customers coming back.
● On the contrary, El Banco relies on bank transaction fees as a source of revenue.
● The third pillar is the operating strategy. This factor focuses on the structure and order
of the company.
Compare and contrast the strategic vision of El Banco
and United Commercial Bank.
Service Delivery Operating Strategy Service Target Market
System Concept Segments

El Banco Spanish spoken, Franchise, Low cost Fee based Latinos


Hispanic physical informal store fronts services,
setting Attract first time
bank
customers

United Chinese spoken, Branches in Chinese- Loans to Chinese -Americans


Commercial Bank Conservative, American businesses,
Import-export communities, Offices High interest,
services in China, Taiwan, CDs Low fees
Hong Kong
Identify the service winners, qualifiers, and service losers
for El Banco and United Commercial Bank.

Service Winners Qualifiers Service Losers

El Banco Check cashing, Spanish spoken, Lack of sophisticated


Money transfers Informal location services

United Commercial Low fees, Import- Chinese spoken, Lowering interest rate
Bank export services Soundness and on CDs
safety
What are the differentiating features of banks that target
ethnic communities?

● Products that match unique customer needs (trade finance, check


cashing)
● Well articulated cultural focus on target community (language, physical
setting)
● Convenient location accessible to community (ethnic population centers,
places frequently visited by community members)
THANK YOU

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