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Since 2006, GreenSky has been operating as a financial technology company. This year, the company went public after receiving investment capital to the tune of over $500 million.
Improving Home Improvement
The impressive amount of investment funds is a measure of GreenSky ‘s growth over the past decade and success at serving an underserved market. With a focus on financing home improvement projects, the company has made successful partnerships with companies like Home Depot.
According to Forbes, GreenSky got its start lending up to $65,000 to home improvement projects like remodeling or updating. Now, the company boasts a customer base over 1.7 million.
The Perfect Middleman Position
Where GreenSky separates itself from other lenders is that it does not fund the loans itself. Instead, the company brings the loans to banks like SunTrust, who then finance the loans. In return, the company gets a kickback from the bank, and as such, has a no risk position.
Working with and training contractors helps GreenSky procure customers. Trained contractors input relevant customer information, GreenSky analyzes income and credit score information, and a decision is quickly made as to whether the customer qualifies. If so, the contractor can receive the funds in as little as 24 hours.
Beyond Home Improvement
In 2016, the company started looking for additional markets to service. Furniture and large online purchases did not prove to be that viable, though the healthcare industry appears more promising. The fintech company has partnered with healthcare providers to help finance procedures like Lasik and orthodontics.
A Bright Future
GreenSky ‘s move into the public space is a good indicator that the company is moving in the direction of continued success. The company’s ticker on Nasdaq is GSKY. The company’s CEO, David Zalik, plans to remain CEO of the now-public company and has retained 50% voting power.