GreenSky Credit has become one of the most celebrated companies in the fintech sector. Whereas some of its competitors, like OnDeck and Lending Club, have crashed and burned under poor leadership and hairbrained business models, GreenSky Credit has done nothing but grow since its inception. The company has been less focused on dazzling investor PR and more focused on eliminating serious inefficiencies in the U.S. retail lending market. Today, the company that seems like it actually paid attention in economics class is doing more business than any of its utopian fantasist competitors. And it may be nearing the point of finally going public, a deal that could value the company at upwards of $10 billion.
GreenSky Credit always makes money for its partners
One by one, all of GreenSky Credit’s old friends in the fintech industry are gone. The aforementioned once-giants of fintech, OnDeck and Lending Club, never made money for anyone involved. This was largely due to the fact that those firms insisted on ignoring the basics of economics. NINJA loans and microlending might work in leftist economic fairy tales. But in the real world, they end up ineluctably in default, with investors holding the very foul bag.
GreenSky Credit, on the other hand, has focused on prime borrowers who were interested in completing value-additive projects. Because these borrowers often have FICO scores in the 800 range and even higher, the company’s major lending partners, including Region’s Bank, Fifth Third Bancorp and Sun Trust, are more than happy to extend loans on excellent terms. And the contractors who serve as in-field sales agents for the firm are able to complete many big-ticket projects that they otherwise would not have gotten. But the real kicker is that the homeowners themselves often end up completing projects that add far more to the value of their homes than the overall cost of the project itself. This means that literally everyone walks away a winner. GreenSky Credit makes money for all its partners, on every deal.
It’s no wonder, then, that the company has continued to experience massive year-over-year growth. When everyone walks away happy, one’s reputation can only be enhanced.