It was a breakthrough for GreenSky, the fast-growing financial tech company when their stocks rose by 17.1% in August 2018. According to financial analyst, the growth was a result of the company’s recent partnership with American Express. Considering that American Express has a strong merchandise base, we expect that and access to such a base will give GreenSky a more extensive customer reach than what they already have.
About the company
GreenSky is a company that is known for its role as an intermediary between borrowers and lenders. They do not bear any risk during this process, and therefore, their operational model is attractive to many business partners. Considering that they have excelled in the online lending industry despite spirited competition from many quarters, there is no doubt that their growth will keep increasing. They have built strong relationships with home investors, banks, and healthcare providers to cement their position as leaders in this industry.
Getting more customers
Observers say that the bulk of their partnership with American Express will be more visible in 2019. This realization is likely to bring another critical growth dimension. GreenSky says that due to this new partnership, they will be focusing on bringing more customers on board, and using the networks that are already in place to make loans more accessible. It is a partnership that is likely to spur growth for both parties, and things are looking up.
Their recent history
Exponential growth is not a new phenomenon for GreenSky. We are looking at a company that experienced a 50% growth in the number of active merchants on their platform for the period ranging from 2015-2017. Although they have a business model that resembles that of big payment processors, they have used various tactics such as reduction of transaction fees to keep customers coming to their platform.
Based in Atlanta, Georgia, GreenSky focuses on providing the latest financial technology to banks and other financial institutions. This technology enables them to provide more effective loan options for customers in various markets including home improvement and healthcare. Owing to their new partnerships, we can only expect that the company will come up with improved ways of accessing loans for customers.