The biggest company you’ve probably never heard of:
GreenSky is a fintech company that’s brought a lot of joy to consumers, banks, and especially contractors. You’re probably wondering what on earth fintech even means. Fintech is simply a company that finances technology purchases. For example, if you go into a store and want a new computer but don’t have the cash, a fintech company would finance the technology for you. The company acts as a middleman in the process. Getting in the middle has proven to be a very profitable venture in recent years as the company has nearly doubled its transaction fee revenue in just two short years.
How GreenSky makes its money:
As previously mentioned, GreenSky acts as a middleman. They do this by offering their services through the point of sale systems at retailers and even through iPads that a home remodeling contractor or other small business might use. The company matches the request with a lender that would approve and fund the credit request. GreenSky typically does end up servicing the loan. The primary source of income is the transaction fees that GreenSky collects from the merchants that use its service. Some companies pay upwards of seven percent per transaction in order to offer the service. Also, the company will often offer a greater amount than is required for the purchase, creating more sales and revenue for everyone involved.
A bit about the company:
GreenSky was founded in 2006. The company’s current CEO is David Zalik. The company employs approximately 900 employees. The company currently partners with over 14 banks and has steadily grown in recent years. They’ve also been attributed to creating job growth in the Atlanta area, which is where they’re currently headquartered. The company has also begun to offer its services to more health care providers in recent years. The company states that it has serviced over $13 billion in loans and has over 13,000 active merchants. The company has also connected nearly two million customers with the financing they needed to complete their purchases. The company has recently become public and trades on the NASDAQ stock exchange.