The investment bank Goldman Sachs Group (NYSE: GS) launched a consumer banking division in 2016, which included its digital deposit platform Marcus, several credit card partnerships, and the acquisition of the buy now, pay later company GreenSky.

The goal was to diversify Goldman's earnings stream away from the more volatile investment banking and trading businesses. Steadier earnings were supposed to translate into a higher valuation.

But roughly six years later, Goldman is pivoting away from the consumer business after the unit racked up billions in losses. That means the company will need to pursue a different path to achieve a higher valuation, and that path will most certainly lie in continuing to build out its asset and wealth management (AWM) unit.

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Source Fool.com