In the battered fintech sector, one company has weathered the industry’s perennial challenges and come out on top. GreenSky Credit is one of the only remaining fintech companies that has proven to have a truly profitably business model that has made money year in and year out.
The company was founded in 2006 by polymathic entrepreneur David Zalik. Zalik had been tossing the idea for GreenSky Credit around for a couple of years. As a principal in e-consulting firm Outweb, he had worked extensively with some of the biggest players in the home-improvement business. He realized that there was a huge opportunity for someone who could help contractors to overcome the sticker shock that many customers were experiencing as job bids came in wildly above what they had expected.
What Zalik realized is that the home-improvement game was an area where everyone involved could consistently profit with near certainty. The homeowners themselves could proceed with projects that would have otherwise certainly fallen outside of their budgets. This would allow homeowners to create the living environments they desired as well as helping them to increase the value of their homes.
At the same time, the GreenSky Credit platform has been a godsend for contractors. Before, contractors had no way of providing bridge financing to customers. While bridge financing is a critical part of larger real estate development and improvement projects, with major real estate developers having access to sophisticated credit lines that allow them to stay nimble as investors, few, if any, average Americans have access to the kind of 5- and 6-figure revolving credit that is often needed to complete major home renovation projects. Now, GreenSky Credit had provided these customers with the functional equivalent of bridge financing for individual homeowners.
Finally, because the average GreenSky Credit borrower has a FICO score of 760, the lenders themselves were able to benefit from their relationship with GreenSky by padding their books with top-quality loans. GreenSky currently works with 14 of the top lenders in the United States, including Fifth Third Bancorp, Sun Trust and Region’s Bank. The company is positioned soundly for continued growth.