David Zalik grows GreenSky into one of largest fintech firms

Over the last 20 years, the trend among financial tech startups has been to vilify and denounce the traditional banking model. Companies like Lending Club and and OnDeck have explicitly rejected the traditional lending role, instead trying to create parallel systems that are able to better meet the needs of both lenders and borrowers.

But of those companies have struggled to stay afloat. David Zalik, the founder and CEO of GreenSky, had a very different idea about how to create value within the fintech sector. Rather than trying to burn the banking system to the ground through disruptive technology, Zalik embraced the world of traditional banking, using technology to eliminate frictions and create value for banks, merchants and customers by facilitating deals that would have otherwise fallen through.

This model has proven to be enormously successful. Within just 12 years, Zalik has been able to grow GreenSky from a startup that he funded by taking out a reverse mortgage to a company worth more than $4.5 billion. GreenSky is now poised to make its initial public offering, a move that analysts say could make it one of the best opportunities for IPO investors this year.

GreenSky has an incredibly simple yet hugely effective business model. The company started by helping home remodeling contractors extend credit with generous terms to customers, helping to facilitate many deals that would have otherwise fallen through due to the customer underestimating the true cost of the project that they wanted to complete.

Zalik quickly saw that this model could be replicated across many different sellers of big-ticket items. Today, GreenSky has over 17,000 merchants who are able to connect with 12 of the largest lenders in the country, including Region’s Bank, Fifth Third and Sun Trust. These merchants are able to offer customers truly amazing loan terms at the point of sale, often involving no payments and no interest for 12 months. Because the majority of the customers have extremely strong FICO scores, almost all of these loans are paid back before the higher rates kick in. And the banks who make the GreenSky-facilitated loans almost never contend with delinquencies.

https://www.fool.com/investing/2018/08/06/why-greensky-inc-stock-is-soaring-today.aspx

Greensky Credit’s Staff

Greensky Credit was established several years ago. It was founded in the year 2006. David Zalik developed the company. The corporate is among the leading companies in the United States of America. The corporate’s headquarters are located in Atlanta, Georgia. However, it has another call center located in Covington, Kentucky. The company is backed by the most influential investors in the world. Some of them include Fifth Bancorp that is situated in Cincinnati, Ohio.

According to a journal in the US, the company is valued at $3.6 billion. The company’s value had elevated compared to a fund-raising that was conducted ranging at around $300 million. Additionally the corporate is backed up by other investors like Wellington management, DST global, Iconiq Capital and TPG.

According to a 2016 valuation that was conducted on various companies, Greensky Credit was awarded the prize of the most valuable growing, privately-owned company. However, there were no financial details that were disclosed. A private organization is not required to disclose its financial information to anyone. They don’t share information with the public.

Greensky Credit corporate is not that familiar with most of the consumers like other financial technology companies. The reason behind this is because the company doesn’t make out loans from its capital. The company’s staff signs up retailers and merchants from all over the country. These merchants primarily sell home improvements staff like aluminum siding, window replacement products and furniture.

Greensky Credit’s employees have been very hardworking and at the forefront to see that all critical services have been delivered. They provide solutions to all consumers. This way the lives of most consumers have improved. Subsequently, the lives of their families have been made better.

Additionally, most small businesses have expanded. Greensky Credit has been able to elevate small businesses into medium-sized corporates. Greensky staff is a dedicated team of employees that are ready to see the organization propel. The organization has over 670 employees. The company has had plans to increase the number of employees as it grows. Also, the CEO confirmed that they would soon extend their services so that they get to accommodate medical personnel like doctors and nurses into their services.

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