Category: TechCompany

GreenSky: A solution for instant loans

GreenSky is without a doubt one of the best fintechs we have in the world today. Earlier this years, the company was listed as a publicly traded company after fronting its Initial Public Offering (IPO). GreenSky is a financial service provider. They offer point-of-sale services to consumers. Their main role is offering technology that connects the consumer to the regional banks that can avail the funds for various services that the consumer might be interested in. The company works on a fee-based model which enables it to maintain consistent growth. It does not suffer from the challenges that face traditional banks. It is projected that the company might see double-digit growth for the next few decades consistently if the recent trend is anything to go by. In 2017, the firm managed to drive over $3.8 billion to their partnering banks, a record increase of 30 percent from 2016.

How GreenSky Works

The main role of this firm is to connect the borrower and the lender at the point-of-sale. In the process of linking the two parties, it gets paid through the fees charged in facilitating the transactions. In the setup are four parties that form the complete transaction path. There is the customer, the merchant, GreenSky and the bank. It is the merchants who provide services to customers who initiate the process of getting a loan. Mainly, the merchants involved in these transactions are in the healthcare and home improvement fields.

If the homeowner is interested in home maintenance services but lacks sufficient finances at the time to pay for the services, he or she can opt for the option provided by this fintech. It will allow them to get instant access to a loan that will be obtained by the customer. The merchant will initiate the process by taking the details of the customer and sending them digitally to GreenSky system. The fintech will receive the loan details and then talk to a partnering regional bank that is ready to provide the loan. In a short time, the loan will be processed and deposited to the customer who will, in turn, pay the merchant for the services provided.

https://www.forbes.com/sites/greatspeculations/2018/09/05/greensky-now-looks-undervalued-given-strong-q2-performance-alliance-with-amex/#5d78658d5eda

GreenSky Credit

GreenSky Credit, a financial company based in Atlanta, provides technology-driven lending solutions to banks, firms and consumers for home improvement, infrastructure, health-care and other purposes. Over 1.7 million consumers and over 12,000 companies are benefiting from GreenSky Credit.

GreenSky Credit is considered a highly innovative firm in the so-called “Fintech” space. Finteck, a shorthand for “Financial Tecnology” refers to those companies such as GreenSky Credit that utilize techological innovation in their lending businesses.

A recent Motley Fool article describes how GreenSky manages and grows its business by acting as a “Middleman that connects consumer borrowers with banks” by offering “Point-of-sale solutions” to individual lending situations. According to Seeking Alpha, in many cases a customer can apply for a loan and be approved in less than 60 seconds. The company has seen a steady growth in revenue, with transaction fees rising to an aggregate of $279 million in 2017, according to the Motley Fool source. Much of this innovation is directly related to the skill and leadership of its CEO and management.

CEO and Management Team

GreenSky Credit is run under the leadership of CEO Mr. David Zalik. He is assisted by Mr. Gerry Benjamin, Vice Chairman and Mr. Tim Kaliban, President and Chief Risk Officer.

CEO David Zalik has been highlighted in a number of articles, including ones appearing in Forbes and Bloomberg. David Zalik, originally from Israel, moved to Alabama at age 4 and has become an American business success story. Zalik was 12 years of age when, after he achieved an exceptionally high score on a special test, Auburn University invited him to take classes. He rode his bike to the Auburn campus after regular school for 2 years, until he enrolled at Auburn as a full-time student.

The main edge that Mt. Zaric has honed with GreenSky is that of business model that transfers much of the risks and the work to others. Another aspect that makes his company so successful is that they typically don’t work with distressed borrowers. He prefers a business model that appeals to customers who take out loans for convenience rather than necessity. In the words of Forbes, he has made the company into a “Classic digital-era middleman, in the great tradition of eBay and Airbnb, to the tune of $9 billion in unsecured loans” since 2012.

https://www.glassdoor.com/Reviews/Greensky-Reviews-E937061.htm