GreenSky entered into a partnership with Fifth Third Bank designed to add significant strategic value to both organizations and their customers.
The comprehensive agreement enables Fifth Third to originate loans through GreenSky’s existing merchant network and will be able to offer GreenSky’s financing solutions to merchants with whom it does business today, improving credit access to those merchants’ customers.
Fifth Third has committed to provide phased quarterly financing for up to $500 million in loans originated through GreenSky’s system and has an option to increase that commitment up to $2 billion. The arrangements also include a $50 million investment from Fifth Third in the financial technology company.
Fifth Third Bank has also signed a separate letter of intent to license GreenSky’s technology platform and integrate it into its online and mobile banking channels and in its approximately 1,200 financial centers, improving speed of response on loan decisions and increasing overall loan originations with improved credit metrics. Near-instant loan decisions will become available to Fifth Third’s existing 2.2 million customer base.
“GreenSky maintains funding commitments with a number of outstanding banks,” said David Zalik, CEO of GreenSky. “This announcement, however, reflects more than solely a funding commitment. This is a multifaceted alliance that will not only benefit all parties today, but that also will continue to drive customer-centric innovation in the years ahead.”
Greg D. Carmichael, president and CEO of Fifth Third Bancorp, provided additional context in saying: “As Fifth Third begins this relationship with GreenSky, we believe that the best outcomes for consumers and business customers are likely to come from this unique BankFinTech collaboration. This alliance will speed loan decisions for Fifth Third customers and bring new efficiencies and security to GreenSky’s customers.”
“Throughout our discussions, we were impressed by the degree to which GreenSky both innovates and shares Fifth Third’s customer centric approach,” Carmichael said. “That philosophy has driven GreenSky’s success to date, and it’s the same lens through which we make decisions at Fifth Third. It was an important driver why we made this equity investment as it creates an opportunity for us to improve our customers’ experience.”
Zalik said, “This alliance represents a win for all parties – consumers, business customers and the Fifth Third and GreenSky organizations. We are excited about a collaboration with one of America’s premier superregional banks, and gratified that Fifth Third Bank believed that an equity stake was warranted. We look forward to installing all of the identified programs and to achieving our planned business outcomes.”
Atlanta, GA-based GreenSky provides technology-enabled payment solutions that power partners to close more deals and create loyal customers. In the past five years, GreenSky has exploded into a multi-billion dollar enterprise, partnering with 14 banks providing aggregate funding commitments in excess of $6.5 billion, to help more than 12,000 merchants provide fast, frictionless and easy financing options to more than 600,000 consumers.
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