Buy Existing Paper - GreenSky uses the GreenSky mobile

Description

GreenSky uses the GreenSky mobile application to help lenders and subcontractors to save on cost of doing business. The app is effective in helping the lenders save the money and other resources needed to conduct a successful business in the world of business lending. The innovative app does not need one to do much to decide if an individual should be awarded a loan. Through the app, lenders are given clients who are less risky and thus are able to pay their loan. The app assess how much loan should a client be advanced based in his or her score. From the results obtained GreenSky is able to produce a list of loan deserving clients. If the GreenSky app was not available, deciding in who the lenders should advance loan to would be a long process which will also cost more. For example, more people would need to be employed to do the work that the app does. Subcontractors are also saved on cost of doing business in that they do not look for clients on their own. GreenSky gets the clients for subcontractors and all the subcontractors have to do is serve the clients as per the requirements or agreement.

  1. GreenSky facilitates enhanced differentiation for lenders, banks, through charging clients a loan processing fee of 37 dollars which goes to the bank. Therefore, even if the clients pay all the loan within the promotional period they have already paid 37 dollars which can act as the profit for the bank. However, there are those clients who do not pay all their loan within the promotional period and end up paying 17% to 23% deferred interest rates. Others opt to have the loan advanced at a lower fixes rate of between 5% and 7%. The subcontractors on their side have access to the loan once advanced within  24 hours. The subcontractors offer their service at a profit and they will always charge more above the cost of doing the work. Additionally, the subcontractors at times receive up to 60% of the loan upfront. This makes doing business easy for them since they do not need to borrow money to do their work. They can easily use the money paid upfront to buy things they need to carry out home renovations.
  2. GreenSky has made use if ‘ blue ocean’ strategy in order to be where it is now. For instance, the Dennis Kelly saw the need to eliminated credit cards for paying selective procedures in hospitals. People just want to have money to pay for a given episode of healthcare. GreenSky also sees the need to improve online purchases. The company’ leadership sees the need to be more competitive in financing online purchases even though it will be competing against companies such as Paypal. It has tried this option in the furniture section but it has not taken off. This calls for the need to be improve on the services it offers in this segment.  Zalik, the company’s president also sees the need to have healthcare loans. This will deviate from what is already offered in the market which is credit card that caters for healthcare costs. By identifying new markets such as the planned venture into pet market, GreenSky is able to continue growing and generating mote profits.GreenSky uses the GreenSky mobile