Neo Bank, a traditional commercial bank, is exploring the feasibility of offering a new insurance underwriting service. Mr. Nathan, the CEO of Neo Bank says that the offering of the new services would help diversify its income base. Explain why diversification may be good for the Bank.

Answer rating: 100% (QA)

Diversification can be good for Neo Bank for several reasons 1 Risk Reduction By diversifying its income base Neo Bank can reduce its reliance on a si... View the full answer