The Rise of GreenSky Credit

GreenSky credit is a fintech company that uses its online platform to offer consumer loan brokerage services. The company is thus a third party service provider. It also acts as a program administrator for banks chartered by both the federal and state government to offer consumer loans. The bank targets home improvement merchants, elective medical providers, and furniture retailers. In addition, it offers them credit programs and installment loans. This is done all by the use of a simple-to-use mobile app.

GreenSky credit’s co-founder and CEO, David Zalik was born in Israel to an Argentinean father and a Russian mother. When he was 4 years old, his family moved to Alabama, in the United States. He started a computer assembly business while still young. By the year 1996, the business had grown to a company called MicroTech that had 20 employees. He later sold the company for a few millions and moved to Atlanta.

While in Atlanta, in the year 2006, David Zalik and Robert Sheft started GreenSky credit. At that point the company was selling custom-made financial services to client like Stanley Black, Benjamin Moore, and Home Depot. The business was not profitable; something that was attributed to the 2008 financial crisis.

In 2010, David Zalik found out that offering instant loans to his customers would make a profitable business. This was just after the stepping down of Robert Sheft from GreenSky credit. He combined this, his tech knowledge, and connections as well as creating an online platform that could be used to offer instant loans to customers.

David Zalik needed additional investments in order to exploit the business’s potential to the fullest. He faced numerous frustrations in the pursuit for investors. For example in 2013, an undisclosed private firm had promised to purchase 20 percent of the company at $200 million but bailed 48 hours before the expected time of the deal’s closure.

In the beginning of 2014, a couple of investors brought their money into the company. Towards the end of the year, DST Global, Wellington Management, Iconic TPG among others bought 17 percent of the company at $ 1.8 billion. This was the beginning of the success of GreenSky credit. Today, it is the third most valuable fintech company in America.