United Commercial Bank and el

banco

By group B7

United Commercial Bank

UCB

Serves the Chinese American Community.

UCB has $6.32 billion in assets.
Market Capitalization of approx. $ 1.4 billion.
46 branches in CA
Branches were in Taiwan China and Hong Kong.

Target Market

San Francisco based banks that focuses on Chinese American community.

focuses on loans to businesses owned by the Chinese-American community.

Service Delivery System

Main Focus was on savings accounts and CDs with highly conservative lending strategy
on real estate loans.
Lower fees than other banks.
Fees refundable system
Full featured trade finance department.
Often distribute gifts like tea sets/e-cards, Chinese speakers.

Operating Strategy and Service Concepts

90% of loans are for real estate. although they follow a highly conservative lending
strategy on real estate loans.
provide high interest on SBs and CDs, hence interest expense lies at 71st %ile.
Loans to value ratio: 58%( most banks is 80%)
charges much lower account fees, fee income 0.32% of assets (while most of the banks is
1.7%)
UCB is 5th percentile for non interest income for banks overall.
rarely charging fees and often refunding fees previously charged.
a trade finance department to facilitate import-export businesses

El Banco de Nuestra Comunidad

 Financial services to Hispanic customers

offer a range of retail financial services including bank accounts, check
cashing, and mortgage lending.
runs on a fee-based service.
cash third party checks, a service not provided by many.
also offers home loans for undocumented individuals, provide ITIN
mortgage 8-9.5%, industry average of 4.86%.
attract customers through check cashing service, post which they seek
additional banking services.
Service fees account for 50% of El Bancos revenue.

El Banco

Service Delivery
System

Operational
Strategy

Service Concept

Target Market

Spanish speaking
employees, Physical
setting (Spanish
newspapers, lively
Latin music)

Latin-American

ChineseAmerican

United Commercial Chinese speaking

Bank
employees,
conservative home
loan, import-export
services, low fees,
souvenir.

Franchise
Low cost
informal store
fronts

China, Taiwan,
Hong-Kong
presence

Fee based
services

New customer

Business loans,
high interest
and Low Fees

To provide the
best in class
service with
low risk and
high return

Undocumented
individuals

Service winners: the competitive dimension that is used to make the final choice
among competitors. eg. Price

Service qualifiers: A certain level must be attained on the competitive dimension as

defined by other market players. eg. Cleanliness for a fast food restaurant.

Service losers: defined by failure to deliver at or above the expected level for a
competitive dimension. Eg. PSUs

El Banco

UCB

Service winner

Service Qualifiers

Service Losers

Spanish speaking
employees

High cost services

Informal location

Non availability of
other financial
instruments.

Check cash & money

transfer

Low fees

High interest rates on

savings

Import-export
service

Chinese speaking
employees

Banks for Ethnic Origin vs Conventional Banks

Products addressing the needs of the particular ethnicity.

Located in ethnic group establishments.
Service customized as per the likes of customers
Profit making through community service.