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.