GreenSky : The Billion-dollar Middleman

It seems like you need to be a college dropout in order to succeed these days. All of the wealthiest business people that I read about never matriculated through a University. Perhaps it is the power of a real-world experience that makes these people so successful. The latest one that I’m reading about in Forbes, Bloomberg and the Wall Street Journal is the CEO and founder of GreenSky .

David Zalik

Zalik started his company back in 2006. He believed in his vision so much that he took out a $10 million loan using his Atlanta-based real estate as collateral. For years, he fought the temptation to bring in outside investors in order to retain complete control of his financial tech company. It’s now made him a billionaire three times over.

 

 

Dropping Out Of School

The founder of GreenSky  found so much success in college that he dropped out. In fact, he started attending Auburn University at the age of 14 because he tested out of high school. The math genius began to build computers from found parts in order to sell them to fellow students. It was a smashing success. The company even dabbled in software before Zalik dropped out to start GreenSky .

In The Details

There are a variety of financial tech companies out there. Most of them are “revolutionizing” the way that people receive loans. But GreenSky  works a little bit differently. The financial tech services company relies on local banks to fulfill all of their loans. This is why the company is so genius.

Little To No Exposure

Financial tech companies run the risk of going belly up when customers default on their loans. But nobody will ever default on a GreenSky  loan because the financial tech services company passes all that risk onto a bank. Then the bank cuts them a little bit of money at the end of the year to share in the profits.

Contractors also send GreenSky a portion of their profits. This makes the billion-dollar company a middleman with no exposure.

https://finance.yahoo.com/q?s=GSKY