Ucb and El Banco

UCB and EL BANCO

1) Compare and contrast the Strategic Service Vision of El Banco and United Commercial Bank in terms of (a) target market, (b) service concept, (c) operating strategy, and (d) service delivery system.

UCB:

Target Market: UCB is San Francisco based bank and the bank focuses on Chinese American community. UCB pays special attention on loans to businesses owned by Chinese Americans.

Service Delivery System: UCB focuses on saving accounts and CDs on real estate loans. UCB charges lower account fees than other banks. UCB does not always refund fees.

Operating Strategy and Service Concept: UCB’s loan to value ratio is 58%. UCB’s fee income is 0.32% of assets. 90% of loans are real estate in UCB.

EL BANCO:

Target Market: El Banco’s target market is Latin Americans specially who do not feel confortable in a foreign land. Also, the bank targets undocumented individuals.

Service Delivery System: El Banco focuses on fee-based services. In El Banco, fees for check cashing starts at 1.5%. and service fees account for 50% of revenue.

Operating Strategy and Service Concept: El Banco has an informal atmosphere (Spanish language newspapers, Latin songs, etc.). El Banco’s check cashing service gains customers earlier that other banks.

2) Identify the service winners, service qualifiers, and service losers for El Banco and United Commercial Bank.

UCB’s service winners are high interest rates on saving accounts, lower account fees and trade services. El Banco’s service winners are home mortgage financing for illegal aliens and cashing services. UCB’s service qualifiers are Chinese speakers. Also, UCB is secured and safe bank in San Francisco. UCB’s service loser is lacking in insurance and investment services. El Banco’s service qualifiers are Spanish speakers, culturally advanced atmosphere such as Latin songs, Spanish newspapers. Also, El Banco has the Western Union mimic. EL Banco’s service losers are income highly based on...