In today’s increasingly digital world, financial products have become more diverse, and their complexities have grown significantly. As a result, educating consumers about these products has become a priority for financial institutions, especially in the realm of fintech. With new technological advancements and shifting consumer expectations, traditional marketing methods are no longer as effective as they once were.
One of the most powerful tools to address this issue is explainer videos. These videos have revolutionized how financial products and services are presented to consumers, providing an accessible, engaging, and effective way to educate audiences. In the highly competitive world of fintech, explainer videos can significantly increase product comprehension, trust, and conversion rates, all while simplifying even the most complex financial concepts.
What Are Explainer Videos?
Explainer videos are short, animated, or live-action videos designed to explain a product, service, or idea in an easily digestible format. These videos usually range from 60 to 90 seconds, making them short and engaging. The goal of an explainer video is to simplify a topic or concept, offering clear, concise information that is visually appealing and easy to understand.
In the context of the fintech industry, explainer videos play a critical role. Financial products can often be difficult to understand, particularly when they involve new technologies, such as blockchain, cryptocurrencies, or mobile banking apps. Explainer videos help break down these complex topics in ways that potential customers can easily comprehend, helping them make informed decisions.
The Growing Role of Explainer Videos in Financial Education
The use of explainer videos in fintech is not just a trend—it has become a necessity. With the rise of digital banking, online lending, mobile payments, and cryptocurrencies, financial products are no longer just about savings accounts and credit cards. They involve technologies and services that can be difficult for the average consumer to grasp without proper education.
Explainer videos serve as a bridge between the complexity of financial products and the consumer’s understanding. They provide a visual representation of how financial services work, making it easier for consumers to understand what they are signing up for. The impact of this type of content is especially significant in the fintech sector, where companies rely on user trust to establish their reputation and secure customers.
Let’s break down the most notable benefits of explainer videos in financial product education:
1. Simplifying Complex Concepts
Financial products, such as insurance policies, investment opportunities, or digital wallets, often contain complex jargon that can be confusing for customers. The technical language involved can easily overwhelm a new or potential customer who isn’t familiar with the industry. Explainer videos are a perfect solution for addressing this issue.
By using simple animations, relatable scenarios, and voiceovers, explainer videos break down these complicated concepts into bite-sized pieces. For example, a fintech company offering a new mobile banking service can use an explainer video to demonstrate how users can set up an account, transfer funds, and use other key features, all clearly and straightforwardly. The result is a more informed consumer base, ready to engage with your product.
2. Building Trust and Credibility
Trust is paramount when it comes to the fintech industry. Consumers want to know that their personal and financial information is safe and that they are not being misled. Explainer videos provide an opportunity to establish trust by demonstrating the reliability and transparency of your product.
Through explainer videos, you can show customers exactly how your service works, the steps involved, and the security measures in place to protect their data. This builds credibility and reduces potential concerns, which is especially important in sectors like online lending or digital payments, where trust is essential.
3. Enhancing Customer Engagement
Did you know that people are more likely to retain information they watch in a video than information they read? This is a key reason why explainer videos are so effective in capturing and maintaining customer attention. The human brain processes visuals much faster than text, which means that video content is far more engaging and easier to retain.
The fintech space is competitive, and standing out among the multitude of available services can be challenging. Explainer videos allow you to showcase your product and its benefits in an interactive, engaging way that encourages potential customers to spend more time learning about your product.
The Power of Explainer Videos in Fintech
The fintech industry is all about innovation. However, innovation can often be a double-edged sword—it can create exciting, game-changing products but also introduce confusion and apprehension among potential customers. Explainer videos are one of the most effective ways to overcome this challenge. Let’s delve into the ways explainer videos can enhance the fintech customer journey:
1. Educating Customers on New Financial Products
As new fintech products and services are developed, they may involve innovative technology or new features that are unfamiliar to the target audience. For example, a mobile app for cryptocurrency trading might be difficult for a typical consumer to understand without proper guidance. In this scenario, an explainer video can help demystify the product, explaining how users can buy and sell crypto, manage wallets, or even understand blockchain technology.
By using explainer videos to educate your audience, you ensure that they understand the value of your product and how it works. This increases the likelihood of adoption, as customers are more inclined to try a service they fully understand.
2. Establishing Brand Trust
In the financial sector, trust is essential. Consumers want to feel confident that the financial products they use are secure, reliable, and transparent. Explainer videos allow you to demonstrate the steps taken to protect users’ data and ensure their transactions are safe.
For example, a digital bank can use an explainer video to walk customers through the security features of its platform, highlighting encryption protocols, two-factor authentication, and fraud protection measures. These videos not only show how the product works but also reinforce the company’s commitment to safeguarding customer data.
3. Reducing Customer Hesitation
With new and unfamiliar products, customers often feel hesitant to make a purchase or sign up for a service, especially if it involves money or sensitive information. Explainer videos address this hesitation by providing clear, concise information about how the product works, how it can benefit the customer, and why it’s trustworthy.
For instance, a fintech company offering a new peer-to-peer lending service might use an explainer video to demonstrate the process of borrowing and lending money through the platform. By addressing the steps involved and emphasizing the ease and security of the process, potential customers are more likely to sign up without worrying about the unfamiliarity of the service.
4. Encouraging Social Sharing
Explainer videos are one of the most shareable forms of content. People enjoy sharing videos that provide value, whether that’s entertainment, education, or problem-solving. Explainer videos, particularly those that engagingly simplify complex ideas, have a high chance of being shared on social media platforms, blogs, and websites.
In the context of fintech, this can be extremely beneficial. A well-crafted explainer video that clearly explains how a new product or feature works can be shared by customers or industry influencers, driving greater awareness and boosting the company’s reach. This social proof is invaluable for building a strong brand reputation.
5. Increasing Conversion Rates
A major benefit of explainer videos is their ability to increase conversion rates. A well-produced explainer video can reduce friction in the decision-making process by addressing any questions or concerns that potential customers may have. The more clearly you explain your product, the more likely consumers will trust your brand and make the decision to convert.
For instance, if you run a fintech company that offers an investment platform, an explainer video showcasing how the platform works, how to create an account, and the potential returns can encourage viewers to sign up and start using the service. Providing this visual guidance in a short, engaging video makes it much easier for users to take that final step.
Product Videos: A Deep Dive Into Financial Features
While explainer videos provide a general overview of your product, product videos take a more detailed approach. These videos focus on showcasing specific features of your product, providing viewers with an in-depth look at how the product works and the benefits it provides.
For example, a fintech app offering budgeting and saving tools might create a product video that demonstrates the various ways users can manage their finances, track spending, and set savings goals. These videos go beyond surface-level explanations, providing customers with a deeper understanding of how your product can solve their problems.
Educational Videos: Empowering Your Audience
In addition to explainer videos and product videos, educational videos play an important role in empowering customers to make informed financial decisions. These videos often cover broader topics related to personal finance, such as budgeting, investing, debt management, and retirement planning.
For example, a fintech company offering financial planning tools can create educational videos that explain how users can plan for retirement, understand investment risk, or manage credit card debt. Educational videos help customers gain the knowledge they need to make smart financial decisions, positioning your company as a trusted resource.
The SEO Benefits of Explainer Videos
Incorporating explainer videos into your website or marketing campaigns doesn’t just benefit customer education—it can also improve your SEO (Search Engine Optimization) rankings. Search engines like Google prioritize websites that offer video content, and pages with videos are more likely to rank higher in search results.
When people search for financial products or solutions, they often prefer to consume content in video format. Including explainer videos on your landing pages, blogs, or product pages can boost user engagement, reduce bounce rates, and improve the chances of ranking higher in search engine results.