AI Search: How IMBs Can Outsmart the Mortgage Giants in 2025

Great news! AI search levels the playing field for IMBs. AI-powered search engines like ChatGPT and Google’s Gemini are reshaping how borrowers connect with lenders. Instead of traditional SEO tactics, smaller lenders can now compete by focusing on quality content and local expertise.

Here’s what you need to know:

• AI Search Trends: 58.5% of Google searches now end in zero clicks, delivering answers directly on the search page.
• Opportunities for Small Lenders: AI rewards specialized, user-focused content over big marketing budgets.
• Winning Strategies: Create content tailored to borrower needs, like “FHA loans for self-employed in Denver.”
• High-Intent Keywords: Target search terms like “Pre-qualify for FHA loan Denver” to attract ready-to-apply borrowers.

Old vs. New SEO Methods

Past SEO Methods That No Longer Work

The days of relying on traditional SEO tactics are long gone, especially with the rise of AI-driven search. Techniques like building backlinks, stuffing keywords into content, and churning out generic articles – like introductory pieces on mortgages – are becoming obsolete. Why? Because users are interacting with search engines differently, and a staggering 58.5% of Google searches now result in zero clicks ^[1].

Here’s a breakdown of outdated practices and why they’re losing relevance:

Instead of these outdated strategies, AI search rewards content that is detailed, contextually rich, and user-focused.

What AI Search Rewards

AI search algorithms have shifted focus to content that delivers real expertise and practical value. This change is a game-changer for small lenders who can now leverage their specialized knowledge and local market insights to stand out.

“The future belongs to authentic voices who bring unique perspectives. In a world where AI can generate endless generic content, being memorably human becomes your biggest competitive advantage. Focus on being genuinely quotable rather than technically optimized. This isn’t just another shift in search; it’s a return to what actually matters: saying something worth repeating.” – Britney Muller, AI educator and consultant ^[5]

To thrive in this new landscape, content needs to:

• Offer a deep understanding of specific mortgage products and local markets.
• Deliver clear, actionable answers to user questions.
• Use natural, conversational language that resonates with readers.
• Include data-backed insights and real-world examples.
• Address specific pain points and borrower scenarios.

For example, research shows that content optimized for natural language and contextual relevance keeps users engaged for 35% longer compared to pages relying solely on technical SEO ^[2].

“AI minimizes the impact of conventional ranking techniques.” – Gartner, 2025 ^[3]

Here’s how small lenders can stay competitive:

• Write content tailored to unique borrower situations, like “FHA loans for self-employed borrowers in Denver.”
• Share proprietary market data and insights that users can’t find elsewhere.
• Break down complex mortgage concepts into simple, easy-to-understand explanations.
• Provide location-specific advice that directly addresses local concerns.
• Showcase genuine expertise in niche lending areas to build trust and authority.

This shift levels the playing field, allowing smaller lenders to compete not with massive marketing budgets or technical SEO tricks, but by producing high-quality, specific, and expert-driven content.

Content Strategies for Smaller Lenders

Finding Your Market Niche

To stand out in a competitive market, small lenders need to identify borrower segments that are often overlooked. With 71% of new leads now coming through AI-powered search platforms ^[4], creating targeted content is no longer optional – it’s essential.

Here are some high-potential borrower niches and how to address them:

“The companies that get recommended the most will be those that have published content that clearly articulates who they’re best for, what they’re best at, and why they’re better than the competition.” – Benji Hyam, Grow and Convert ^[4]

Once you’ve identified your niche, the next step is tailoring your content to perform well in AI-driven search environments.

Writing for AI Search

After narrowing down your niche, it’s crucial to ensure your content is optimized for AI search engines. A great example is Security Bank & Trust Co., which revamped its content for AI platforms in early 2025. The result? An 8.56% increase in website traffic ^[8].

How to Structure Your Content

• Use clear, descriptive headers to create a logical hierarchy.
• Include concise answer boxes that directly address common borrower questions.
• Add schema markup specific to mortgage-related topics.
• Use semantic URLs that clearly reflect the page’s subject.

Context Matters

• Write in a natural, conversational tone to address specific borrower scenarios.
• Incorporate relevant market data and expert insights to build trust.
• Ensure your content fully answers user queries, leaving no gaps.

For maximum impact, consider developing content clusters around your chosen niche. For instance, if you’re targeting self-employed borrowers, create interconnected articles on topics like income verification, business documentation, debt-to-income ratios, and industry-specific lending advice.

It’s worth noting that 90% of organizations now use AI to gain a competitive edge ^[7]. By aligning your content strategy with AI search trends, you can position your business as a go-to resource in your market niche.

Getting Better Leads Through AI SEO

Specific Search Terms That Convert

In 2022, 22% of lenders turned to AI to improve lead quality ^[11]. This approach allows businesses to focus on search terms that signal strong mortgage intent. Here’s how different types of search phrases align with conversion potential:

A real-world example highlights the effectiveness of this strategy. DSLD Mortgage saw incredible results after adopting AI-driven SEO tactics. Their website traffic jumped from 1,500 to 50,000 monthly sessions, landing page conversion rates hit 17%, and blog traffic skyrocketed by 3,500% ^[12]. By focusing on these targeted keywords, businesses can guide visitors toward meaningful actions.

Moving Leads to Action

Turning visitors in the research phase into qualified leads requires thoughtful content strategies. Brett McCracken, STRATMOR Senior Advisor, explains:

“AI can compare data fields across stored database values and information pulled from static documents uploaded from borrowers and third parties to run sophisticated rules from investor guidelines and internal overlays.” ^[11]

To boost conversions, small lenders should prioritize these key strategies:

• Behavioral Analytics
  Leverage AI to study user behavior and identify visitors with high intent. This insight is essential for success in mortgage lending ^[10].
• Strategic Content Placement
  Create and optimize content that addresses specific borrower needs, such as:
  • Long-form articles (2,000+ words), which often perform better in search rankings ^[6].
  • Location-specific landing pages tailored to local searches.
  • Mobile-friendly designs, as nearly half of Google searches are local ^[6].
• Automated Lead Nurturing
  Use AI-powered tools to:
  • Segment leads by zip code and demographic information.
  • Deliver personalized content based on browsing habits.
  • Track engagement to identify prime opportunities for conversion ^[10].

Combining targeted content with automation creates a powerful formula for turning visitors into customers.

Why Your Website Traffic Is Dropping—and How to Fix It | SEO, AI Search!

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Beating Big Lenders at Local Search

Local search optimization, when combined with AI-driven content strategies, provides small lenders with a powerful way to outshine national competitors.

Local Content Groups

Small lenders can stand out by creating interconnected local content that aligns with AI search preferences. Consider this: 30% of mobile searches are location-based, and 75% of users never go beyond the first page of results ^[15].

To make the most of this, structure your website using a hub-and-spoke model. Your primary mortgage service pages should link to location-specific pages that address the unique needs of your target areas. Liz Eisworth, Founder and Lead Designer at SangFroid Web, explains:

“Location-specific topic clusters (or content clusters) are a local SEO strategy where you create a group of related content pieces on your website that all focus on a particular geographic area you serve… The idea is to show both Google and potential customers that you’re an expert in that location – not just offering services near it.” ^[16]

Here’s how you can create effective content clusters:

This approach helps establish your authority in specific markets while making your website more appealing to AI-driven search engines.

Local Market Advantage

Once your content clusters are in place, you can build on them to establish yourself as a trusted local authority. With 78% of banking customers relying on online reviews before choosing a lender ^[13], earning trust at the community level is critical.

Take North Star Bank as an example. By focusing on customer testimonials and insights tailored to their local market, they managed to outrank national competitors in local search results ^[13].

To strengthen your local market advantage, consider these tactics:

• Write guides that address unique neighborhood mortgage concerns.
• Collaborate with local real estate agents and businesses to create joint content.
• Highlight your team’s local expertise through blog posts or videos.
• Develop tools like area-specific cost calculators or loan comparison resources.

When paired with AI search optimization, these efforts can yield significant results. Aditya Swaminathan, EY Americas Consumer Lending and Mortgage Leader, emphasizes:

“Lenders can explore and invest in GenAI capabilities starting with use cases that have already shown a significant impact in other industries. Starting on a small scale allows lenders to identify immediate gains, thereby providing a valuable learning experience. This measured approach opens the door to broader GenAI applications.” ^[17]

Currently, only 7% of mortgage lenders are using GenAI ^[17]. By combining AI with hyper-local content strategies, small lenders can not only compete but surpass national brands. Focusing on the specific needs of local borrowers, understanding market conditions, and engaging with the community will build trust and improve visibility in AI-enhanced search results.

Setting Up Your AI SEO Program

Required Tools and Skills

To make the most of AI-powered SEO, you’ll need the right mix of tools and expertise. It’s no wonder 86% of AI adopters in financial services expect major changes within two years ^[18]. By investing in the right resources, small mortgage lenders can stay ahead of the curve.

Here are some essential tools to consider:

Erica Goodwin, Senior Vice President of Marketing at First Heritage Mortgage, shared how her team uses AI to enhance their operations:

“We launched bots to help with the appraisal process and document setup. We also empower loan officers with Birdeye’s AI tools to respond to reviews and streamline communications. It helps us create content better and more quickly on the marketing side. We use AI as a thought partner to create content that engages and wins over new businesses.” ^[18]

In addition to tools, certain skills are essential for successful implementation:

• Data analysis to interpret AI insights effectively.
• AI-optimized content creation for better search rankings.
• Knowledge of E‑E‑A‑T principles (Experience, Expertise, Authoritativeness, Trustworthiness).
• Mobile-first design, as 60% of mortgage searches are done on phones ^[14].

Once you’ve got the tools and skills, it’s time to decide how to deploy them effectively.

In‑House vs. Expert Help

Deciding whether to manage AI SEO internally or hire experts can significantly affect your budget and results. For instance, outsourcing SEO can save businesses up to 30% compared to maintaining an in-house team ^[19].

Here’s a quick cost breakdown:

Ericka Smith, VP of Sales and Marketing Optimization at Waterstone Mortgage, highlighted how automation has transformed their customer journey:

“When customers enter our system, they’re mapped to our CRM systems to automate responses at various intervals in their journey. This includes giving them tips and tricks, notifying them of what’s coming, and telling them what they must look forward to in the loan process.” ^[18]

For most small lenders, a balanced approach works best. Keep core functions like marketing strategy in-house while outsourcing advanced AI optimization. This allows you to:

• Retain control over key marketing activities.
• Tap into specialized expertise when needed.
• Scale resources without overburdening your team.
• Stay up-to-date with the latest AI advancements.

While AI and automation can improve efficiency, remember that personal connections with clients remain crucial in the mortgage industry.

Conclusion

AI search is reshaping the way small lenders compete in the digital space. With 88% of local searches leading to conversions ^[22], it presents an incredible opportunity for lenders to engage with their local communities in a more targeted and precise way.

The adoption of AI-powered search tools is also driving efficiency. For example, one bank reported cutting processing times by 50%, allowing small lenders to focus more on delivering personalized and efficient services.

“SEO is evolving into Generative Engine Optimization (GEO), where success is no longer just about ranking but about being contextually relevant in AI-generated search experiences.” ^[5]

This evolution brings tangible benefits. AI systems are improving fraud detection by 75% and enabling chatbots to manage 90% of customer interactions. This means small lenders can provide the kind of high-quality service typically associated with larger enterprises – all while staying rooted in their local communities ^[20][21].

To thrive in this changing landscape, small lenders need to combine AI-driven efficiency with hyper-local content strategies that resonate with their audiences. As AI educator and consultant Britney Muller explains:

“Beyond the easier tactics like optimizing for long-tail keywords and using clear formats that AI can parse, the real winners will be those who understand that your digital footprint is now measured by who’s talking about you across the web.” ^[5]

FAQs

How can small mortgage lenders use AI search to compete with larger companies?

Small mortgage lenders have a powerful tool in AI-powered search to level the playing field with larger competitors. By focusing on niche-specific, high-value content, smaller lenders can directly address the unique needs of their audience. AI search tools prioritize context and relevance, which means lenders who create content tailored to specific borrower needs – like “FHA loan options in Denver” or “tips for first-time homebuyers” – can secure higher rankings.

What’s more, AI search doesn’t just boost visibility – it also enhances lead quality. By connecting borrowers with precisely targeted content, small lenders can attract more qualified prospects. Pairing this with detailed, localized content and smart internal linking strategies allows smaller lenders to guide potential borrowers seamlessly from research to application. This approach helps them compete effectively with national players on highly specific search terms.

What strategies can small lenders use to improve their visibility in AI-driven search results?

Small lenders can stand out in AI-driven search results by honing in on localized, niche-specific content and showcasing their expertise and reliability. To connect with your audience, create content that speaks directly to your local market. For example, dive into unique real estate trends, address common mortgage challenges, or explore borrower needs specific to your area. Sharing your team’s qualifications and real customer success stories can also go a long way in building trust and credibility.

To further boost visibility, incorporate structured data into your website. This helps search engines better understand your content and can elevate your rankings. Focus on creating content that directly answers borrower questions or tackles their pain points – this type of content is more likely to drive conversions. Finally, a well-thought-out internal linking strategy can guide users through your site, keep them engaged longer, and align with what AI algorithms prioritize.

How can focusing on local expertise and niche markets help small lenders succeed with AI-enhanced search?

Leveraging Local Expertise and Niche Markets

Small lenders have a unique advantage – they can cater directly to the specific needs of their communities. By focusing on local expertise and niche markets, they can offer tailored solutions that larger competitors often miss. For example, addressing specific borrower needs like “FHA loan in Denver” or “first-time homebuyer programs in Austin” helps build trust and credibility with local audiences.

Creating content that speaks directly to these niche markets is another powerful strategy. When small lenders publish relevant, localized content, they improve their visibility in AI-driven search results. Modern search algorithms prioritize context and semantic relevance, so high-quality, targeted content can help smaller lenders rank higher for these specific searches. This not only levels the playing field with larger, national lenders but also draws in more qualified leads. The result? Higher chances of conversions and stronger, long-lasting customer relationships.