The Disruption of the Credit Market by GreenSky

The abrupt emergence of GreenSky  in the finance industry has brought a lot of disruption, especially in the credit market. This is because of the new techniques and methodologies that the company has brought to the industry, under the leadership of its principal, David Zalik. At first, people thought that the company had brought competition to the other banking organizations in the industry. However, it has come to be proven that the operations of GreenSky  are at a unique level. First, the company does not operate as an ordinary lender; it functions as a lending partner. Its role in the credit market is to link lending facilities using technology and to provide them with the right logistics to serve their customers.

Some of the partners with which GreenSky  has engaged in business include the merchants, small lenders, and contractors. For the contractors, you find that sometimes their clients needed to access their services but lacked enough funds to get the services that they needed. Through the partnership with GreenSky, the partners can offer the services to the clients on credit without worrying about their financial stability because GreenSky is on their support. In the same way, the merchants also offer their products on credit to their customers with more confidence because they have GreenSky as their backup.

For the small lenders, the partnership runs on a different concept. Many times you find that the firms have plenty of customers who require financing through loans and mortgages such that their demand surpasses the supply of these companies. In such circumstances, GreenSky  acts as a secondary lender by offering financial support to the lending firms. This would benefit the firm because they can maintain their customers despite the capital inadequacy. In return, GreenSky charges a small commission on any outstanding loan balances on the customers, making the partnership mutual.

As a result, the clients in the financial credit market have become very satisfied with the services that they get from the combined efforts of these partners. They are always assured of getting financial assistance any time they require because the funds are ever made available by GreenSky 

Sources:

Wikipedia

https://www.dailyforexreport.com/greensky-credit-files-100m-ipo/

https://www.crunchbase.com/organization/greensky