Greensky Credit co-founder and CEO David Zalik prides himself on running his company differently than other financial technology start-ups. Zalik avoids speaking at conferences as much as he can. He did not raise a single cent from fundraisers for approximately ten years. Zalik does not treat his employees to a free meal.
Now, Zalik is opened up to the idea of raising capital. He is challenging the idea that companies should remain private for as long as possible. GreenSky has requested an IPO and could raise $1 billion. With that said, the company can still decide to decline the funding after the paperwork has been filed.
GreenSky Credit is putting most of the risk on banks. Large banks such as SunTrust, Regions and Fifth Third, are the ones keeping tabs on the loan balance. GreenSky Credit itself is not on the hook for defaults.
Zalik is not fond of individuals using their smartphone to acquire a loan in a few minutes. Never in his life has he seen a process to raise money come so easy.
Since the creation of GreenSky in 2006, Zalik, 44, has silently raised one of the major players in the financial technology industry. What is his secret? While other businesses are arguing with banks over loan terms, Zalik believes that GreenSky working with banks can lead to a mutually beneficial relationship. Some financial technology start-ups claim that they are a better alternative to banks.
GreenSky Credit, a financial technology company founded in 2006, creates hardware for banks and merchants to help consumers get loans for their home improvement needs. The company is not as well known as other fintech giants such as Social Finance Inc. or Lending Club Corp partly because they do not use their capital to make loans.
GreenSky’s network of banks approves online loans to 10,000-plus customers who shop at physical retail store locations.
There are more than 900 employees working for GreenSky Credit.