Tag: self-financed startup

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