The fintech industry has been battered by scandals and spectacular failures of some of the space’s top companies. Firms like OnDeck and Lending Club, which once were among the most highly touted companies on Wall Street, have proven to be sputtering duds. But there has been one company that has stood out above them all, GreenSky Credit.
A completely mature and viable business model
Behind all of the dazzling public relations and corporate sales pitches, the fundamental problem that so many companies in the fintech sector have suffered from has been a failure to develop any kind of viable business model. This is where GreenSky has excelled. The company was founded in 2006. And it quickly became apparent that the GreenSky model was not just viable but that it could also propel the company to ever greater sales through continuous growth.
Now, 13 years later, the company’s business model has roundly proven itself. And GreenSky Credit’s operations are now in a phase of deep maturity. This has been a critical factor in the willingness of David Zalik, the company’s multi-talented founder, to consider going public.
It was recently announced, for the first time, that GreenSky had quietly filed the necessary paperwork to begin the early stages of the IPO process. While some analysts have expressed doubts about the prospects for a fintech company going public in today’s tough market climate for that sector, Zalik has said that the company won’t be facing many of the serious problems that often come with startups that go public too soon. He says that the GreenSky model is completely mature and that the business virtually runs itself at this point. According to Zalik’s estimation, the strong pressures for quarterly performance won’t hinder the company’s future because it is essentially a turnkey operation.
However, if the fintech sector as a whole continues to poorly perform, it could mean trouble for any IPO for the firm. The initial public offerings of companies are often highly sensitive to market conditions, and the poorest conditions can easily prevent an IPO from ever happening. But if the company continues performing as strongly as it has, even macroeconomic trends may not prevent its IPO.
Weforum.org recently conducted an interview with Richard Liu Qiangdong through David M Rubenstein. Mr. Rubenstein wanted to understand some of the work that Richard Liu has done with the company and his motivators for success. One of the major things that Liu Qiangdong talks about is the early lesson that he learned in his career. While he was still enrolled in college he decided that he wanted to open a restaurant. To do this he secured a family loan and added in his own money. The problem came when he related that he did not have enough time to make sure that the business function properly. Instead, the business floundered. He learned a great lesson from this. He would need to pour everything that he had into a future business in order to make it work. Go To This Page to learn more.
A few years later he got that opportunity when he opened Jingdong Mall. This would be a small tech business that sold mostly computer parts. It expanded a little bit to include other technology devices but they had developed a loyal customer base. Eventually, that base necessitated the development of more locations. Richard Liu discovered that when he put in the hard work his businesses would grow. In 2003 something happened that would be beyond his control. SARS started sweeping the Chinese nation. It was a frightening time and people stopped leaving their houses to go on retail trips. This was when Richard Liu Qiangdong decided to move Jingdong Mall onto cyberspace.
While some people would believe that this signified that the company was not doing well, Richard Liu knew that it was an opportunity to build his brand in another way. He set Jingdong Mall up as JD.com. In 2004 they sold their first products to their first customers. Customers were immediately astounded at the quality of their products. Unfortunately, the Chinese landscape for e-commerce had taught them that forgeries and shoddy craftsmanship were on the rise. Today, Richard Liu Quiangdong has developed JD.com into an extensive business empire. He even hinted to Mr. Rubenstein that the company is looking into global distribution in the future.
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