Alliance With Amex And Strong Second Quarter Performance Makes GreenSky Look Undervalued

GreenSky recently partnered with American Express. This new move gives the company access to their strong merchant base and will help to give a big boost to their platform in the coming months. The company is hoping to grow their revenue while only creating a small impact on their operating costs.

GreenSky’s Role

The company’s role in business is as an intermediary between potential borrowers and lenders who have strong credit scores and low risks. For the foreseeable future, their relationships with healthcare providers, banks and home improvement companies will continue to remain a key component to their growth.

The Impact This Deal Will Have

GreenSky has seven different core value drivers. The deal they have made with American Express will directly impact each of them. Below are the top ways the new partnership will impact the company.

  • Transaction Volume- While their transaction volume for each merchant has steadily declined and is anticipated to continue, the volume that Amex’s merchants bring in will help to reduce the rate of decline.
  • New Transaction Fee Volume- The new partnership will allow a portion of the transaction fees to be split between the two companies and should slow the rate of decline for GreenSky’s transaction fees.
  • More Customer Accounts- The new deal with Amex will have a positive impact on the growth of customer accounts as they will be curious to explore their services.
  • Average Loan Amount Per Customer Account- From 2015 to 2017, the average loan amount for each customer on GreenSky’s platform steadily declined. The deal the company made with American Express is not expected to slow this decline in the coming years. There is also no expected changes to the amount in service fees to be charged forthcoming.

GreenSky’s Beginnings

Based out of Atlanta, this financial tech company was founded in 2006. They offer technology to merchants and banks so they can offer loans to customers for solar, healthcare and home improvement projects. Their credit programs are offered and provided by state and federal financial institutions.

http://greenskycredit.atsondemand.com/

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