Fifth Third Bank and fintech lender GreenSky entered into a comprehensive agreement that enables Fifth Third to originate loans through GreenSky’s existing merchant network.
Fifth Third will be able to offer GreenSky’s financing solutions to current business customers, 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 agreed to integrate GreenSky’s technology platform 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 said, “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 bank/fintech collaboration. This alliance will speed loan decisions for Fifth Third customers and bring new efficiencies and security to GreenSky’s customers.”
Atlanta-based GreenSky provides technology-enabled payment solutions. In the past five years, GreenSky partnered with 14 banks providing aggregate funding commitments in excess of $6.5 billion, to help more than 12,000 merchants provide fast financing options to more than 600,000 consumers.