GreenSky is a fintech with a difference from others. It is being run on a model that has proved profitable in the long-run. Many fintechs have failed in the past because they are run on a model that is not sustainable. This fintech has provided a solution that is fee-based and one that resolves the challenges associated with traditional banking. Borrowers no longer need to spend days doing paperwork in long banking queues when they can get an easy solution through this fintech. The technology employed here is supposed to link the borrower with the bank. The fintech offers no financial support to the lenders. In short, it acts as a middleman in a deal between the borrower and the lender.
How do you get a loan?
GreenSky works directly with merchants and contractors. The model of getting a loan is that the loan is applied at the point-of-sale. If the customer is interested in services offered by the merchant but has no money to pay for the funds, they can apply for a loan through the fintech which will cover the expenses of the services provided. The contractor makes the loan application on behalf of the customer. The loans details are sent To GreenSky who in turn link the borrower with an appropriate bank.
What does Nigel Morris think?
In this kind of business model, there is no one who loses in the whole deal. Everyone’s a winner. All the parties in the deal get what they wanted. According to one of the investors in the company, Nigel Morris, the co-founder of Capital One Financial, GreenSky offer the consumer, merchant and the bank benefits. Morris is one of the successful investors in the world today after creating a leading credit card issuer. He is banking on the share value of GreenSky to get better in future since the model used to run the business guarantees prolonged profits.
Merchants are getting an opportunity to convert a potential customer into actual customers because of the affordable payment plan which does not attract interest. Consumers benefit from the flexibility of repaying method, and the banks increase their loan volume.