There are a number of financial companies that try to make a name for themselves in the business world. Now, one FinTech company is catching headlines thanks to their strong second quarter performance and surprise strategic partnership. That company, GreenSky Credit, is winning fans on Wall Street with their recent string of wins.
The popular FinTech company recently turned heads with their strong second quarter performance that prompted Forbes to pronounce the company’s stock as undervalued. This is on top of the news that the company recently announced a marketing partnership with American Express. The AmEx partnership will allow the credit card giant to market the FinTech company’s quick loan platform to American Express’s massive list of merchant customers.
GreenSky is known as the largest point-of-sale (POS) loan company in the Fintech industry. This type of loan structure allows merchants such as home contractors, medical clinics and solar panel installers get more business by offering quick loan decisions for their clients. Here is how the process works – a client gets an estimate for a big ticket kitchen renovation. The customer may reconsider because of the renovation’s high estimate. The contractor uses the GreenSky app to offer a quick loan. The customer applies for the loan and receives a reply in minutes. The customer is now much more likely to sign the estimate. The POS loan platform has become a popular revenue generator for their merchants. So far, over 13,000 merchants, as well as big retailers like Home Depot, are signed up to the platform.
Currently, the company’s annual transaction volume is about $346,000 per merchant. While this number is down from 2015, the company more than makes up for it thanks to its explosive growth. In the past four years, the company has grown by an average of about 50% per year. It is estimated that GreenSky will have 30,000 merchants, on its platform, by 2020.
Founded by its current CEO, David Zalik, GreenSky Credit currently employees 900 full time staffers. The company is currently listed on the NASDAQ under the stock symbol GSKY. Going forward, the company looks for further innovate the point of sale loan industry.