The branching out of financial conglomerates into several product lines that reduces the dependence of the financial conglomerate on any single product line is known as

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Diversification is the practice of spreading the investments or operations of a business across different products, markets, or regions to reduce risk. In the context of financial conglomerates, diversification allows them to reduce their dependence on any single product line and hedge against market and economic risks. For example, a financial conglomerate that offers both banking and insurance products is less vulnerable to downturns in the banking industry because its insurance business can continue to generate revenue.

The Branching Out of Financial Conglomerates into Several Product Lines