As technology has seeped its way into the depths of the financial system, banks large and small have realized that they will have to embrace technology and incorporate it into their business models if they want to achieve strong, sustainable long-term profits. A bank building a fintech has a lot of advantages over a start-up because the bank is likely profitable to begin with, has much more scale, and can offer deposits insured by the Federal Deposit Insurance Corp. (FDIC).

Still, most consumer-facing fintech companies have long struggled to achieve profitability and often come up short of expectations. This storied Wall Street bank is starting to learn just how difficult it can be to build a successful and profitable fintech company, even when you have the resources.

Goldman Sachs (NYSE: GS) is one of the largest, most highly coveted banks on Wall Street and has long been known as an investment banking powerhouse. But investors have not been the biggest fans of pure investment banks in recent years because their earnings can be volatile and hard to predict.

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Source Fool.com