Final answer:
United One Bank employs a differentiated marketing strategy, offering customized loans to various demographic groups. They mitigate loan default risks by diversifying their loan portfolio and applying other risk management strategies.
Step-by-step explanation:
United One Bank has adopted a differentiated marketing strategy by designing various loan schemes tailored to the needs of distinct groups such as students, differently-abled persons, single parents, and retirees. This approach allows them to address the specific needs and preferences of each segment efficiently.
To protect against a high rate of loan defaults and asset-liability time mismatch, banks like United One Bank can diversify their loans. This means they can extend credit to a range of customers across different industries, which can help balance the risk of defaults. During widespread economic challenges, however, such as a recession, diversification alone may not be enough. Banks must employ additional strategies like selling loans in the secondary market, increasing their reserves, or holding a larger share of government bonds.