David Zalik is one of the more interesting characters in the financial technology industry. A former child prodigy, Zalik got a near perfect score on the SAT test at the age of just 12 years old. This caused him to be invited to attend classes at Auburn University, allowing him to skip high school completely. But it didn’t take long for Zalik to become bored with academia. He dropped out at around the age of 15 to pursue the development of his computer-assembly business, MicroTech.
MicroTech did well. And Zalik was able to sell the firm for approximately $5 million in 1996. At the age of just 22, Zalik had become a millionaire. He invested his capital in Atlanta-area commercial real estate. This proved to be a sound investment. By the time he was 32, Zalik was worth over $10 million. It was during this time that he first became aware of the opportunity presented by generating big-ticket point-of-sale loans.
Working with another one of his companies, e-consultancy firm Outweb, Zalik had noticed that a large number of his home-remodeling customers were losing business at the point of sale. Specifically, customers with little to no experience in contracting were systematically and severely underestimating the final costs involved in home remodeling projects. Contractors who were bidding on these projects found that customers were often so far out of the ballpark of realistic cost expectations that the bridge simply could not be gapped. Contractors were losing sales.
Zalik formed GreenSky Credit as a way to provide promotional financing for customers who couldn’t immediately afford their home-improvement projects. The genius in GreenSky Credit lies in the fact that it creates strong value for literally everyone involved. GreenSky Credit allows the customers to get the home improvements that they need, creating deep satisfaction with their homes and increasing their home’s resale value.
At the same time, GreenSky Credit delivers high-quality loans to lenders while helping contractors to nail sales that would have otherwise been lost. GreenSky Credit provides loans to mostly prime borrowers, almost eliminating the risk that lenders will have to contend with defaults.