United Commercial Bank and El Banco

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Question 1: Compare and contrast the strategic service vision of United Commercial Bank and El Banco.
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. 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 Communidad focuses on luring in Hispanic clients. As stated by the company CEO, Drew Edwards, everything in the bank is designed to attract Hispanic people, from the bright colors, to the Spanish music, and comfortable ambiance.

The second pillar of the service vision is the service concept, which mainly focuses on the reasons why customers would choose one product over their competition. Some competitors that UCB faces in the Asian community are East West Bancorp. Nara Bancorp, Cathay General Bancorp, and Wilshire Bancorp. 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...
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