GreenSky Credit is one of the most successful companies currently in the fintech sector. The company’s growth has been almost preternatural. GreenSky started as a self-financed venture back in 2006 when founder David Zalik liquidated his real estate holdings in order to raise the required capital for the firm’s launch. Today, the company is worth between $5 and $10 billion and is currently mulling its prospects for an IPO.
Smart choices and big payoffs
Zalik has always had a knack for knowing where he should go to find big returns. At the age of 14, he founded a computer company that he would go on to sell for $5 million. He was then able to parlay that fortune into $12 million in commercial real estate holdings. It was those holdings that he eventually ended up liquidating in order to start GreenSky.
Zalik’s entrepreneurial instincts hadn’t diminished an inch. He found his way to the $410 billion home improvement industry where he was able to find a number of opportunities that either no one had previously spotted or that they had not devised an effective business model to address. One of those was the retail home improvement space. Zalik saw billions of dollars each year being lost when customers who were looking to complete home improvement projects were rebuffed by the high costs of completing their renovations. Zalik saw that most of these customers had prime credit scores. And he quickly realized that this was a great opportunity to create an instant-loan technology that would allow these customers to complete their projects, which almost always created net value for their homes even after the cost of the projects was taken into account.
This marked the beginning of GreenSky Credit. Zalik quickly created a frictionless app that allowed retailers and home improvement contractors to instantly approve customers for up to six-figure loan amounts. And the lenders with which GreenSky partnered were all to happy to have these customers taking loans from them, with the average GreenSky customer having a FICO score of 760.
This genius for spotting opportunities and devising clean and frictionless solutions is why the company is all but guaranteed to continue enjoying success into the future.