GreenSky Credit improves its Credit Risk through transferring it to the Retail Merchants.

The technological advancements that have been initiated by GreenSky Credit have no precedence in the finance and lending industry. The technology that the organization has invented under the leadership of Zalik David has astonished a lot of industry players in the manner that it has grown popular. This technology involves a platform on the internet that has enabled successful communication between the merchants, creditors, consumers and the contractors to interact, all with a common intention of transacting business. This has been after a lot of suffering by the credit consumers in the industry, where they were subjected to tedious processes to get financial assistance from the financial institutions and other creditors. The customers were also required to fill in a series of documents with details that were unnecessary for the process of loan application.

After the foundation of GreenSky Credit back in 2006, the CEO of the company decided to make the company a lender to the small creditors and a guarantor to the contractors and the merchants. This way, the organization would be able to tap customers from all these businesses and make significant profits from assisting them most appropriately. Here is how the agreement operates: The small financial lenders and the creditors may have such a large customer base that they may face difficulties in meeting their credit requirements. Instead of turning down their loan applications, they continue vetting the applicants even without having enough capital to fund them. Once the vetting is over, and the customer is proved to be creditworthy, GreenSky Credit comes in and funds the customers on behalf of the creditors.

This engagement has been quite beneficial to many lenders and merchants as they can retain their market share even during the times of financial constraints. The customers are also at an advantage because their financial needs are fully met. The online platform by GreenSky Credit has also reduced the bulk of work that the consumers and the creditors were to do to complete the loan application process. On the other hand, GreenSky Credit benefits from a small percentage that is charged on the outstanding loan balance of every customer as commission.

https://www.cnbc.com/2017/05/25/how-greensky-billionaire-david-zalik-built-a-tech-empire-from-age-14.html