GreenSky uses relatively simple business model to great effect

GreenSky Credit has turned out to be one of the most successful ventures that the fintech space has seen over the last few years. Founded in 2006, the company is the brainchild of serial entrepreneur and former child prodigy David Zalik. But unlike some of his Silicon Valley competitors, Zalik’s genius is the real deal. GreenSky is now estimated to be worth upwards of $10 billion, and the company continues to grow at breakneck speed.

Simple as possible

GreenSky has one of the greatest marks of sure genius: surprising simplicity. Zalik was able to create a company that does a transformative thing. But he was able to integrate it into the existing banking framework so seamlessly that it has been called the most frictionless lending platform in the world by a number of banking industry luminaries.

Zalik was able to find a number of transaction classes that benefit enormously from instantly approved loans, particularly in the retail sector. The main source of GreenSky Credit’s business has traditionally come from the home improvement sector where the company has been able to help grease the wheels on billions of dollars in transactions each year. Home improvement customers who were previously unable to complete expensive renovations due to liquidity shortfalls now have the option to complete those projects with instant loans from GreenSky Credit. And most of those loans are made on the spot, at the point of sale.

The company has now expanded to have its services pitched by more than 17,000 retailers across the nation. It has expanded into other industries as well, including some medical procedures, dentists and siding and roofing. All told, the company is doing more than $5 billion per year in new loans and hopes to be doing four times that amount by 2020.

All this comes at a moment when it has been rumored that the firm may be filing the early paperwork on an eventual initial public offering. Although Zalik is coy about the prospect, he says that his company has a completely mature business model and, at this point, is essentially a turnkey operation. GreenSky is definitely a company to watch over the next few years.

https://www.nasdaq.com/markets/ipos/company/greensky-inc-1052127-86689?tab=financials