NerdWallet Reports Decline in Small Business Loans as AI Drives New Referrals
NerdWallet saw a drop in small business loan originations in Q1 due to tight underwriting and trade policy uncertainty. However, the company highlights a shift in traffic sources as AI agents begin referring business their way.
NerdWallet reported a decline in small business loan originations in Q1 2025, attributing the trend to tight underwriting standards and trade policy uncertainty. This aligns with the company's earlier statements, as noted in a previous report.
Key Takeaways:
- AI-Driven Traffic Shift: NerdWallet, historically reliant on Google search rankings, is adapting to the rise of AI-powered answer engines. CEO Tim Chen noted that AI agents are now referring business to NerdWallet, with the company receiving a higher share of referral traffic from AI sources compared to competitors.
- CEO Insights: Chen emphasized that AI’s ability to provide quick, spam-free answers aligns well with NerdWallet’s offerings. "AI, at its best, helps you find a great answer quickly without a bunch of effort or spam," he said.
- AI Agent Test: deBanked tested AI recommendations for small business loans, with both Grok-3 and ChatGPT-4o listing Fundera (acquired by NerdWallet in 2020) among top choices. Results may vary due to AI personalization.
- Search Ranking Impact: Chen acknowledged a decline in traditional search rankings, partly due to search engines prioritizing AI-generated answers.
- AI’s Growing Role: The earnings call transcript itself was AI-generated, underscoring the technology’s pervasive influence.
Last modified: May 7, 2025
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About the Author
David Chen
AI Startup Analyst
Senior analyst focusing on AI startup ecosystem with 11 years of venture capital and startup analysis experience. Former member of Sequoia Capital AI investment team, now independent analyst writing AI startup and investment analysis articles for Forbes, Harvard Business Review and other publications.