GreenSky is a financial technology company that was founded more than a decade ago in Atlanta, Georgia. David Zelik is the Chie Executive Officer and co-founder.
The company collaborates with financial institutions such as banks and merchants to offer loans to consumers for specific purposes such as healthcare, solar, home improvement among other needs. It has so far partnered with several financial institutions and continues to attract more.
GreenSky funds its programs mainly through federal insurance and state-chartered financial institutions. The company lent approximately $5 billion to various institutions between 2012 and 2016 and that figure has continued to rise.
Why GreenSky has remained low key
One of the reasons as to why GreenSky is not popular in the fintech industry is because it doesn’t make loans from its own capital as is the case with other competitors.
The company instead partners with banks across the country to reach its goals.
Currently, GreenSky is in Partnership with more than 14 banks including Sun Trust Banks according to Wikipedia.
GreenSky ’s business model
According to its CEO David Zelik, GreenSky should be viewed as a bank competitor. He says that the purpose of the company is not to lend money. “We are a technology company and our main purpose is to integrate technology with financial solutions by partnering with banks and other financial institutions,” said Zelik.
Capitalization and Valuation
In late 2016, GreenSky raised capital worth $50 million. It then launched a $2 billion lending fund in cooperation with Fifth Third Bancorp in Ohio. Its valuation at that time stood at $3.6billion, two times more in the previous two years.
The company’s valuation in 2016 made it one of the few highly valued financial technology startups in the country according to the Wall Street Journal. Other major investors at GreenSky include Wellington Management, Iconiq Capital, QED Investors, DST Global, and TPG.
David Zalik has been the CEO of the company since 2006 and is also the co-founder. Gerry Benjamin is the Vice Chairman while Tim Kaliban is the President and head of Risks.