Apps, business, CEO, Company, Investment, Technology Company

GreenSky Credit Drumming Up Some Serious Coin

GreenSky Credit started humbly enough. Founder David Zalik hails from Atlanta where he was a math genius in high school. His high school shipped them off to Auburn University at the age of 14 where he started his first company. He was building computers from scratch for Auburn University students when he decided to drop out of college. He was making too much money. He also had the idea for GreenSky Credit.

Respect For Zalik

This is where I gain a lot of respect for the founder of the financial tech company. He quite literally put everything on the line by taking out a $10 million loan using his family’s Georgia real estate as collateral. He’s also fought outside investors. He’s worked very hard to keep controlling interest of his company which is now one of the most valuable privately owned companies in the world.

Relationship With Banks

Of the major things that set GreenSky Credit apart from other financial tech companies is its relationship with conventional banks. In fact, GreenSky Credit Just signed a $50 billion lending deal with Fifth Third Bank out of Cincinnati, Ohio. Other financial tech companies like to fund loans on their own while David Zalik sees it more prudent to get loans through traditional banks. After all, traditional banks will take on all of the default risks while sharing some of the profit with the financial tech company.

GreenSky Credit maintains relationships with over 12 different banks. The company makes mountains of money being a loan middleman. Essentially, homeowners tap into the financial tech company’s app to secure home improvement loans. The financial tech company also gets some of the profit from the contractors that perform the home improvements.

Profiting Without Ownership

Herein lies the brilliance of GreenSky Credit. They don’t own an ounce of inventory. They don’t have tools, workers or trucks like contractors. They don’t own the loan which can default. They essentially profit billions of dollars by offering incredible convenience to both the bank and the homeowner. You can read more about this amazing company on Forbes, the Wall Street Journal and Wikipedia.

 

https://www.crunchbase.com/organization/greensky