Greensky has established itself as a strong competitor in the diverse Fintech market, and it’s recent partnership and 2nd Quarter performance present the message that this company is just getting started with its growth and integration into the financial pulse of American society.
Greensky is an intermediary between lenders and merchants offering services to customers, and the number of merchants using it have been growing by more than 50 percent each year from 2015-2017. This is due in part to Greensky cutting their transaction fees from 7.9 in 2016 to 7.4 percent per transaction in 2017. While the number of transactions per customer has declined over recent years, Greensky has now announced a partnership with American Express, which is expected to boost total transactions.
The announcement of this partnership comes on the heels of a strong reporting of second quarter earnings. The report announced that 2nd quarter revenue for Greensky increased by 28.3 percent over 2nd quarter revenue from 2017. David Zalik, President and CEO of Greensky said that the company will “continue to expand our ecosystem of merchants, consumers, and bank partners” and pointed to a 36 percent increase in transaction volume among home improvement merchants.
As the company continues to expand and offer new borrowing options to its line of merchants and lenders, the future is looking very bright for this financial intermediary. As a connector of strong financial institutions with individuals with strong credit, the risk born by this company is very minimal, which helps it to achieve such high financial returns and establish itself as a safe foundation for credit transactions. The addition of American express will increase the range of options that they can provide for their retail partners, and their strong financial results points to an efficient leverage of that opportunity for even stronger reporting in the future.