GreenSky Credit has become one of the most successful companies in the fintech industry. The company that couldn’t even find loan backing for its launch back in 2006 has gone on to eclipse virtually every other player in the industry. And its growth and continued success has been the product of its founder, David Zalik, and his unique strategic vision to create the best fintech business in the world.
Only the strong survive
One of the key factors in the success of GreenSky has been Zalik’s realism. While competitors like OnDeck and Lending Club were going after the dregs of the lending market, attempting to magically turn natural weakness into strength by extending loans to people who had no way of paying them back, GreenSky went with the philosophy that strength begets more strength.
Zalik only sought to deal with the best borrowers. In making this strategic decision, he made it possible to quickly bring on board some of the top lenders in the country, including names like Fifth-Third Bancorp, Sun Trust and Region’s Bank. These lenders wanted to pair with GreenSky precisely because the company was doing business with borrowers who, on average, had FICO scores above 760. At the same time, the fact that these borrowers were squarely in the prime category meant that the lenders with which GreenSky partnered were willing to not only issue loans instantly but also on some of the best terms that the industry had ever seen.
The typical GreenSky loan entails no interest or payments for the first full year. After that, higher rates kick in. But the vast majority of the company’s borrowers end up paying their loans back, in full, before the higher interest rates take effect.
And what is perhaps the most spectacular part of the company’s business model is that sheer numbers involved. The firm makes mostly big-ticket loans, usually in the five- or even six-figure range. This has enabled the company to do more than $5 billion in loans each year. And the firm is able to make money both from its retail partners as well as a 1 percent annual carrying fee from its lenders.
Richard Liu Qiangdong was recently interviewed by David Rubenstein for Weforum.org titled; “An Insight, an Idea with Richard Liu”. There are a lot of businessmen that want to hear from Richard Liu, as he is often called, because he managed to grow one of the most lucrative businesses in China. Many people have compared his business to other brands such as Amazon and Walmart. Richard Liu Qiangdong believes that in a lot of ways JD.com is better because they offer more product options and better quality items. At the end of the interview he even hence that they will be willing to take on these retail giants on the international stage in the very near future.
One of the things that Richard Liu is most proud of is his ability to keep JD.com competitive. Early on in his career, he learned how important it was to remain invested in his business. Many people know of the success that he has experience with JD.com but they are not aware of his once failed restaurant attempt. While this was very long ago and when Richard Liu was in college, he still uses it as a lesson for his future business decisions. He tells David Rubenstein that he wants to always remain invested in his business. David Rubenstein asked him where JD.com came from. Initially, JD.com was Jingdong Mall. Jingdong Mall was Richard Liu Qiangdong’s second attempt to start a business. With this business, he took everything that he learned from his restaurant and applied it. Jingdong Mall did much better. He eventually moved the business to the web when SARS became a major issue for Chinese citizens.
Today, there is a lot for Richard Liu Qiangdong to remain thankful for. He has expanded his business to heights that he could once only dream of. This has enabled him to adequately care for his family and the Chinese community. In fact, he tells a David Rubenstein that half of all the earnings that he personally makes from his venture with JD.com is ultimately donated to charities. It seems that the rise of JD.com has been to the benefit of many Chinese citizens and hopefully soon the world. See This Page for additional information.
Visit Richard on https://www.crunchbase.com/person/richard-liu-e9b4