After being added to Forbes’ top 50 FinTech companies, it is no wonder that the Atlanta-based lending innovator, GreenSky is being recognized as an industry leader. The company is still young and growing. A successful IPO this year means that the sky is truly the limit for GreenSky.
GreenSky recently went public in which they raised $824 million in capital to do so. The company’s hard work of the last 12 years since inception is finally starting to pay off in big ways. Much of the original team is still involved as primary owners of the firm.
The company has quickly moved to the forefront as one of the juggernauts of the FinTech industry. The company has also become one of the most profitable financial technology startups in the nation. GreenSky acts as a middleman for pitching loans to banks so it differentiates itself from the old industry leaders like Lending Club.
Not just a typical loan organization, GreenSky transfers much of the risk for everyday people taking on loans to its capital-saturated bank partners, like SunTrust, Regions and Fifth Third, who fund these loans. GreenSky is not responsible for any defaults. However, this is how the company makes profits; the banks pay the firm about 1 % each year for managing the loans.
The company’s business strategy is much like a payment industry company’s such as Visa or Mastercard’s business model. All of these companies act as intermediaries or as a lender although in a credit card situation it is a little different than from an outright loan. This industry is expected to grow into 2019 as people accept new options for taking on loans as opposed to credit.
The future is bright for the young company because it is now evolving into different markets. They now offer loans for healthcare solutions which is a highly sought after monetary loan purpose. Many people find themselves in a pickle when paying for ever-rising healthcare costs, but the loan company makes it easy on everyone to access payments for their necessary healthcare expenses.