ATLANTA, Sept. 14, 2016 /PRNewswire/ -- GreenSky, LLC, today announced a groundbreaking partnership with Fifth Third Bancorp (Nasdaq: FITB) 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 Fifth Third 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 anticipates financing $2 billion in loans originated through GreenSky’s system over time, subject to an agreed upon on-boarding schedule. 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 market-leading 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 an important expansion to the nature of GreenSky’s historic bank funding arrangements, with the Fifth Third alliance including both the provision of proprietary technology and merchant cross-sale activities. 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."
Financial Technology Partners served as exclusive financial advisor to GreenSky in connection with this Transaction; Troutman Sanders LLP served as GreenSky’s legal counsel.
No specific dates have been announced for the launch of individual programs.
GreenSky, LLC, one of the leading financial technology companies in the country, provides technology-enabled payment solutions that power partners to close more deals and create loyal customers. Over 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. Based in Atlanta, Georgia, more information can be found at GreenSky.com.
ABOUT FIFTH THIRD
Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. The Company has $144 billion in assets and operates 1,191 full-service Banking Centers, including 94 Bank Mart® locations, most open seven days a week, inside select grocery stores and 2,541 ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia and North Carolina. Fifth Third operates four main businesses: Commercial Banking, Branch Banking, Consumer Lending, and Wealth and Asset Management. Fifth Third also has an 18.3% interest in Vantiv Holding, LLC. Fifth Third is among the largest money managers in the Midwest and, as of June 30, 2016, had $305 billion in assets under care, of which it managed $26 billion for individuals, corporations and not-for-profit organizations. Investor information and press releases can be viewed at www.53.com. Fifth Third's common stock is traded on the Nasdaq® Global Select Market under the symbol "FITB." Fifth Third Bank was established in 1858. Member FDIC, Equal Housing Lender
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SOURCE GreenSky, LLC