Truist, set to buy consumer lender, is cutting ties with GreenSky

Truist, set to buy consumer lender, is cutting ties with GreenSky

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Truist, set to buy consumer lender, is cutting ties with GreenSky

Truist Financial is ending its partnership with the fintech GreenSky shortly after announcing a deal to buy another company that also specializes in point-of-sale lending.

Atlanta-based GreenSky disclosed the partnership’s demise on Wednesday, one day after Truist said it will pay $ 2 billion to acquire a Florida-based consumer lender. GreenSky said in a securities filing that it does not expect Truist’s decision to have a material impact on its profits.

“Demand for GreenSky program consumer loans from multiple funding sources remains high, cost of funds across funding sources remain low, and GreenSky continues to be poised for strong profitability,” the company said.

Loans for home improvement projects have been a focus for both GreenSky and Service Finance Co. Truist Financial has agreed to pay $ 2 billion to acquire the latter company and is ending its partnership with the former.

Bloomberg

GreenSky offers technology that merchants such as home contractors can use to offer installment loans to consumers. Those loans are often funded by GreenSky’s financial institution partners.