How Explainer Videos Boost FinTech User Acquisition 

1. Leveraging Explainer Videos for Active & Long-term User Acquisition 

Explainer videos have become a staple for fintech companies aiming to effectively explain their complex services and products. For fintech startups or established companies, these videos are crucial tools in simplifying complicated financial processes for a broad audience. 

One of the primary ways explainer videos contribute to user acquisition is by making information more digestible. Unlike a lengthy article or dense whitepaper, explainer videos offer an engaging, concise, and easy-to-understand way of communicating the key benefits of a fintech service. For example, a platform offering peer-to-peer lending can use an explainer video to clearly outline the process, the benefits for borrowers and lenders, and how the platform ensures security. This immediate understanding builds trust, which is essential for user acquisition in the financial space. 

Benefits of Explainer Videos for User Acquisition: 

• Quick Comprehension: Explainer videos communicate your fintech service’s value proposition quickly, helping users immediately understand the benefit. 

• Engagement: A well-produced video holds viewers’ attention far better than traditional text-based content. This engagement significantly reduces the chances of user abandonment. 

• High Conversion Rates: Studies have shown that explainer videos increase conversion rates by as much as 80%. With the right call to action and clear messaging, explainer videos can convert curious visitors into active users. 

• Building Long-Term Relationships: An explainer video also introduces users to your brand’s personality, helping to humanize your fintech service and foster long-term relationships. When users feel comfortable with your service, they are more likely to return and engage with the brand over time. 

By addressing the pain points of your target audience and offering them solutions in a compelling way, explainer videos can directly drive the growth of your user base. 

2. Key FinTech Industry Statistics for 2023 

The fintech industry has been evolving at an unprecedented pace, and 2023 has proven to be another year of rapid growth. According to recent reports, global investment in fintech companies has soared, with funding reaching nearly $30 billion in the first quarter alone. 

Here are some vital statistics that show the growing relevance of explainer videos in the fintech marketing landscape: 

• FinTech Market Growth: The global fintech market is forecasted to grow from $179.74 billion in 2020 to $433.17 billion by 2028, at a CAGR of 12.1%. 

• User Growth in Digital Payments: In 2023, digital payment platforms saw an increase in usage, with over 60% of U.S. adults using mobile wallets and digital payments. This trend is only expected to continue as users demand faster and more secure transaction options. 

• Cryptocurrency Adoption: Cryptocurrency is becoming a mainstream investment, with nearly 15% of adults in the U.S. investing in some form of digital asset in 2023. This growing market signals a massive opportunity for fintech companies specializing in blockchain and cryptocurrency to engage users through effective explainer videos. 

• Online Lending and Peer-to-Peer Lending Growth: The online lending market is expected to reach $620 billion by 2026. Explainer videos play a crucial role in simplifying how these lending platforms work, allowing users to easily understand the process and take part. 

Given these statistics, it’s clear that fintech services are becoming an integral part of daily life for millions of users. To stand out in this highly competitive space, fintech companies must leverage the power of explainer videos to effectively communicate their value proposition. 

3. The Growing Importance of Video Marketing for FinTech Startups 

Fintech startups are continuously looking for new ways to stand out and differentiate themselves from the competition. Video marketing offers a unique opportunity for these startups to achieve that goal. Explainer videos, in particular, allow fintech companies to break down complex financial concepts into easy-to-understand, bite-sized content. 

Here are some additional reasons why video marketing is crucial for fintech startups: 

• Visual Appeal: Video content is visually stimulating and easy to consume. Fintech products like mobile wallets, investment platforms, or credit score tools are often intricate and complex. A video can demonstrate how the product works in a way that static text cannot. This is especially useful for fintech startups that need to simplify complicated financial services for a non-expert audience. 

• User Preference for Video Content: Studies show that video content generates 1200% more shares than text and images combined on social media platforms. Given the increased mobile video consumption, explainer videos are a highly effective way to increase your fintech brand’s visibility. 

• Content Versatility: Fintech startups can use explainer videos in various places, including their websites, email campaigns, social media, and even paid advertising. Video content is versatile and can be repurposed for multiple touchpoints across the user journey. 

• Higher Engagement Rates: According to HubSpot, video content produces 41% more engagement than static images or written content. Fintech companies can leverage explainer videos to boost engagement and turn prospects into paying customers. 

Video marketing provides fintech startups with the tools they need to build strong brand awareness and foster meaningful connections with their audience, which can be the difference between gaining loyal customers and losing them to competitors. 

4. Why Explainer Videos Are So Effective for FinTech Brands 

There are several key reasons why explainer videos are highly effective in the fintech sector. Let’s break down some of the core benefits: 

• Instant Clarity: One of the primary benefits of explainer videos is that they simplify complex concepts, making them easier to understand. Fintech services often involve intricate steps, such as cryptocurrency transactions, financial forecasting, or investment algorithms. Videos break down these steps visually, helping users understand the process without feeling overwhelmed. 

• Improved User Trust: Financial services inherently require a significant amount of trust from users, especially when dealing with sensitive information. Explainer videos help fintech companies establish credibility by explaining their offerings clearly and showing users how their service works in real-time. 

• Better Conversion Rates: Research by Wyzowl shows that explainer videos boost conversions by 80%. For fintech companies that rely on user sign-ups or app downloads, this is a crucial metric. The clarity, engagement, and persuasive nature of explainer videos make them an indispensable tool for turning leads into paying customers. 

• Increased Brand Visibility: A good explainer video doesn’t just showcase your product; it also communicates your brand’s personality. It’s an opportunity to connect with your audience on an emotional level. Fintech companies, which are often perceived as impersonal or technical, can use explainer videos to humanize their brand and make their services more relatable. 

5. What Do FinTech Companies Offer? 

Fintech companies provide a variety of innovative financial products and services designed to simplify financial transactions and empower users to take control of their financial futures. Here’s a closer look at the services fintech companies provide and how explainer videos can play a role in helping users understand these offerings: 

• Digital Payments: Fintech companies like PayPal, Venmo, and Stripe make digital transactions easy and secure. Explainer videos for these services show users how to send money, make payments, or transfer funds globally with ease. 

• Personal Finance Management: Fintech companies like Mint and YNAB (You Need A Budget) help users manage their finances by offering budgeting tools, financial planning, and debt management. Explainer videos can show users how these apps work, helping them organize their spending and save for the future. 

• Lending and Borrowing: Peer-to-peer lending platforms like LendingClub and Prosper offer alternative lending options. Explainer videos on these platforms show how users can borrow money, invest in loans, or even become lenders themselves. 

• Cryptocurrency: Services like Coinbase or Binance simplify the world of cryptocurrency. Explainer videos can demystify crypto transactions, explain how to buy and sell digital assets, or even provide insight into blockchain technology. 

• Investment Platforms: Robo-advisors such as Betterment and Wealthfront have made investing more accessible. Explainer videos help users understand how these platforms build portfolios, automate investments, and provide financial advice. 

6. Explainer Video Statistics: How They Impact Marketing Success 

When it comes to marketing strategies, explainer videos have proven time and time again to produce tangible results. Here are some impressive statistics regarding explainer videos: 

• Higher Retention: Video content can increase information retention by 95%. People are more likely to remember a message delivered through video compared to one delivered through text or static images. 

• Increased Engagement: According to a report from Animoto, 64% of consumers purchase after watching a branded video. Explainer videos create a compelling reason for users to act on the information provided. 

• Improved Social Media Reach: Explainer videos are 1200% more likely to be shared than text and images combined. This makes them an essential part of any fintech company’s social media strategy to extend their reach and visibility. 

7. How to Create an Effective Explainer Video for Your FinTech Business 

Creating an effective explainer video is not just about producing high-quality visuals. It’s also about crafting a clear message and ensuring that the video aligns with your brand’s identity. Here are the essential steps to creating a successful explainer video for your fintech business: 

• Define the Purpose: Before producing the video, clearly define its goal. Is it to educate users on how your product works? Or is it to demonstrate the value proposition of your service? 

• Keep it Short and Sweet: Ideally, explainer videos should be between 60 and 90 seconds long. Attention spans are short, and your video should get straight to the point. 

• Craft a Compelling Script: The script is the foundation of the video. Make sure it speaks directly to your target audience’s pain points and provides a clear solution to their needs. 

• Use Professional Animation and Visuals: The visual appeal of your explainer video is crucial. Consider working with a professional animation studio or design team to create high-quality visuals that are both engaging and informative. 

• Include a Clear Call to Action (CTA): Every explainer video should end with a strong call to action, encouraging users to sign up, contact you, or explore your service further. 

Conclusion: Unlocking the Potential of Explainer Videos for FinTech User Acquisition 

Explainer videos are an essential tool for fintech companies looking to drive user acquisition and engagement. They simplify complex financial concepts, build trust with potential customers, and improve conversion rates. In 2023, with the fintech sector becoming increasingly competitive, explainer videos help businesses stand out by providing valuable, digestible content that resonates with users. 

As fintech continues to innovate and expand, incorporating explainer videos into your marketing strategy is more critical than ever. By providing clear, engaging content, fintech companies can boost user acquisition, retain long-term customers, and improve overall business performance.