GreenSky is a fintech that offers point-of-sale loan services to consumers. It has partnered with regional banks to provide loan services to as many people as possible. They have simplified the loan application process, by handling the paperwork needed from the consumer and the bank. They offer quick solutions to the needs of consumers who are in need of crucial services but have no cash to pay. If you are a homeowner and you need some home maintenance work to be done but you lack the money to pay, worry no more because GreenSky will facilitate instant financing of the project through the merchant.
The merchant will apply for a loan with the amount he will charge for the service. They will send relevant loan processing information to the fintech, which will on its part link the borrower with a lender willing to offer the loan. Once a lender is found, the loan is processed instantly. GreenSky has mainly been working with four regional banks namely Sun Trust, Synovus, Fifth Third, and Regions Financial
Regional banks are interested in consumer lending since it attracts high yields, but two obstacles hinder progress in this field. The cost involved in getting customers is too high and the servicing the loan can also be a nightmare. Through GreenSky, regional banks are getting better full benefits of consumer lending. The fintech brings the customers to them and it even facilities servicing of the loan. The role of the bank in the whole process is to offer the money to lend.
GreenSky does not offer interest on the loans as is the case with traditional banking. Customers who will pay back the loan in the agreed timeframe will get the benefit of not repaying even a single cent on top of the principal amount. It is GreenSky who take up the role of repaying the loan during the zero percent APR period. There are huge hopes on this company that it will perform very well in long-term. In the period that they have been in the industry, there has been consistent growth trend. In 2017, they recorded a 30 percent increase from the previous year.