Many fintech startups are tackling problems in the financial services industry. And some of those companies are even targeting the financially savvy millennial audience. But that doesn’t mean all fintech products have to be super nerdy. In fact, some of them are quite the opposite – like a personal finance advisor for Millennials who love video games and Harry Potter. You might even call them “nerds.” NerdWallet is a fintech startup that helps users find the best places to invest their money and get the most out of their credit cards, mortgage or student loan. The company also runs a blog with tips on how young adults can manage their money responsibly. So how does NerdWallet make money? Let’s take a closer look…
What is NerdWallet?
NerdWallet is a personal finance website founded in 2009. It publishes free content related to all aspects of personal finance, including credit cards, mortgages, student loans, retirement, insurance, investing and more. NerdWallet’s main product is a free online tool that helps users find the best places to invest their money. Users can also get advice on how to lower their monthly credit card payments, find a good interest rate on a mortgage, and even research potential careers based on salary and job outlook. NerdWallet also publishes a blog with tips on how young adults can manage their money responsibly. The company’s mission is to help people make smart financial decisions and take control of their financial future. NerdWallet has attracted more than 25 million visitors to date, and 75% of those visitors are millennials. The company’s headquarters are in San Francisco, California.
How Does NerdWallet Make Money?
NerdWallet makes most of its money from the money it saves its users. The company makes money from paid reviews of financial products and credit cards and paid advertisements on its website.
Earned Income: Paid Reviews NerdWallet earns money from paid reviews of financial products, such as brokerage accounts, savings accounts, insurance policies and credit cards. If a user is looking to find the best place to put his or her money, he or she might consider reading a paid review on NerdWallet. Earned Income: Credit Card Offers Credit cards are part of most people’s livelihood, so it’s important to choose wisely. NerdWallet’s credit card comparison tool allows users to compare between different credit cards and find the best one for their financial situation. In exchange for allowing NerdWallet to display the credit card offers that appear on the site, the company receives a commission from that company. These commissions are NerdWallet’s main source of advertising income.
Advertising Income: Display Ads and Sponsored Content NerdWallet also receives advertising revenue from display ads on its website and sponsored posts written by employees of NerdWallet. Display ads are short, 15-second advertisements such as banner ads and sponsored content that bloggers on the website post. A blogger working for NerdWallet might write a sponsored post on how to get the best mortgage rate available. That post may contain links to NerdWallet partners that provide mortgages. If a reader clicks on one of those links, NerdWallet receives a commission.
Bottom Line
NerdWallet is a fintech company that helps users find the best places to invest their money and get the most out of their credit cards, mortgage or student loan. The company makes money from paid reviews of financial products, credit card offers and display ads and sponsored posts on its website. NerdWallet’s main target audience are millennials, and most of their fintech products are designed for people who don’t consider themselves to be “hugely financially savvy.” With online tools and advice from financial experts, NerdWallet helps people make smart financial decisions for the future.