While other financial technology companies, like Lending Club and OnDeck, had the idea of burning the traditional banking industry to the ground, GreenSky Credit decided to embrace the old regime and allow it to function with less friction. GreenSky Credit now appears to be the model that is taking hold across the financial tech industry. With OnDeck and Lending Club both experiencing stock price declines of more than 85 percent, it seems that the GreenSky Credit model of pairing existing lenders with merchants who are looking to make additional sales may be the definitive way forward for the fintech industry.
GreenSky Credit founder David Zalik is one of the most reclusive CEOs of a major corporation. The former child prodigy scored so high on the SAT test that he was invited to begin attending classes at Auburn University when he was just 12 years old, completely skipping high school in the process. But Zalik quickly grew bored with academia. A couple years into his studies, he dropped out to form computer assembly company MicroTech. The company proved to be a success, and Zalik sold it for around $5 million a in 1996.
By 2006, at the age of 32, Zalik had made some good investments in commercial real estate and was ready to try founding another company. He had gotten the idea for GreenSky Credit while working on another one of his firms, Outweb, an e-consultancy company. He knew that many businesses in the home-remodeling space struggled to close point-of-sale purchases with customers who had often badly underestimated the true cost of home renovation projects.
GreenSky was able to step in with promotional financing terms that were too good for most customers to turn down. At the same time, Zalik was able to sell GreenSky Credit loans to lenders as a way to bring in far more business from the most sought-after loan customers: prime borrowers. Because the average FICO score of a GreenSky borrower is 760, lenders can rest assured that they will not have to deal with many delinquencies or defaults.
The pairing of traditional lenders with over 17,000 merchants has proven to be a winning formula.
ClassDojo has been widely accepted by both teachers and parents in the United States, with 2 in 3 schools using the app. Its impressive reach has encouraged the company to begin monetizing the communication platform. The primary process involves charging both parents and teachers for extra contents.
The app has been able to trounce its competitors to become the favorite application among educators and parents. ClassDojo has established a strong connection between teachers, parents, and students. It has also empowered each of these parties. Mrs. Rhodes, for instance, uses the platform to share class pictures with parents. She adds that many parents like the pictures, especially those from early days of the school and art projects. Mrs. Rhodes is also pleased with the app’s ability to inform her if the parents watch a video or open a class photo. She is a teacher at Bel Aire School in Tiburon, California.
Sam Chaudhary, Class Dojo co-founder and CEO, is pleased with the success of the application. He points out that the app has enabled parents to interact with their children. Parents are able to learn what happens in schools, which is a plus in the education system. The constant communication between parents and teachers has also improved the relationship between the teachers and parents besides helping with children’s growth.
After successfully connecting teachers and parents, ClassDojo is now entering the monetization stage. Unlike other free applications that make money from selling advertisements, the company will focus on marketing educational content through the app. With its widespread reach, the app forms the best platform to sell educational videos to teachers and parents. The videos will also focus on helping the community created by the application to bring ground-up change in the education sector. The monetization will enable the company to generate revenues. This information was originally mentioned on Inc.com as explicated in this link http://www.inc.com/salvador-rodriguez/classdojo-monetization-slack-classrooms.html
ClassDojo is a communication platform, which is designed to be used in the classroom. The application connects teachers and parents through shared photos, videos, and even private messages. This interaction serves to bring a positive culture in the classroom. It has also enhanced the relationship subsisting between students and teachers.
Currently, the application is used in over 90 percent of K-8 schools in the United States. At least over 180 countries across the globe are using the platform. ClassDojo is available in over 35 languages. The app is free and can be downloaded from either Apple Store or Google play. It was named in the list of 35 Most Innovative Apps of the Year 2016.