How Animated Explainer Videos for Fintech Help Improve User Acquisition

Aug 22, 2023

Did you know that 64% of consumers find it difficult to understand the intricacies of fintech products and services? 

As the fintech industry continues to disrupt traditional financial practices, effectively communicating the value and benefits of these innovative solutions becomes paramount for user acquisition. That's where animated explainer videos come into play. With their captivating visuals and simplified explanations, these videos have become a powerful tool for fintech companies to bridge the gap between complex financial technologies and their target audience.

Animated explainer videos are concise, engaging, and visually appealing presentations that simplify complex concepts and processes. They use storytelling and animation to break down intricate financial terminologies and services into easily digestible and relatable narratives. In the context of fintech, explainer videos serve as a bridge between the technicalities of the industry and the understanding of the target audience.

  • The main objective of fintech explainer videos is to improve user acquisition by effectively communicating the value proposition of the product or service. 
  • They serve as a persuasive medium to capture the attention of potential users, educate them about the benefits of the fintech offering, and ultimately drive conversions. 
  • These videos help fintech companies overcome communication barriers and build trust and credibility with their audience.

In this blog, we will delve into the reasons why fintech companies need explainer videos and explore the benefits they offer. By understanding the significance of animated explainer videos in fintech marketing, companies can enhance their user acquisition strategies and effectively engage with their target audience. 

Why Fintech Needs Explainer Videos

1. The Complex Nature

The world of fintech is filled with intricate technologies, complex financial processes, and sophisticated algorithms. Communicating these complexities to potential users can be a daunting task. Explainer videos provide a visual and simplified way to convey the intricacies of fintech products and services. By breaking down complex concepts into easy-to-understand visuals and narratives, these videos make it easier for users to grasp the value and functionality of fintech solutions.

2. Simplifying Complex Concepts

Fintech often involves concepts and processes that are unfamiliar to the average user. Explainer videos simplify these concepts by presenting them in a visually appealing and easily digestible format. Through animation, graphics, and concise explanations, users can quickly grasp how fintech products and services work, eliminating confusion and reducing the learning curve. This simplification is crucial for attracting and retaining users who may be intimidated by complex financial technologies.

3. Building Trust and Credibility

Trust is a vital component in the fintech industry. Users need to feel confident that their financial information and transactions are secure. Explainer videos play a key role in building trust and credibility by showcasing the robust security measures, compliance standards, and industry certifications employed by fintech companies. These videos provide an opportunity to highlight the company's track record, partnerships with reputable institutions, and testimonials from satisfied customers, instilling confidence in potential users.

4. Demonstrating Unique Value Propositions

Fintech companies often face the challenge of differentiating themselves from competitors offering similar products or services. Explainer videos are an effective tool for showcasing the unique value propositions of fintech solutions. By highlighting key features, benefits, and how they address specific pain points, these videos can demonstrate why users should choose a particular fintech offering over alternatives. This clear differentiation helps fintech companies stand out in a crowded market and attract users who align with their value proposition.

5. Engaging and Retaining User Attention

In an era of information overload, capturing and retaining user attention is crucial. Explainer videos excel in this regard by presenting information in an engaging and entertaining manner. With captivating visuals, storytelling, and concise messaging, these videos can keep users interested and ensure they absorb the key information about the fintech offering. By leveraging the power of visual storytelling, explainer videos increase the likelihood of users staying engaged, sharing the video with others, and ultimately converting into loyal users.

Benefits of Animated Explainer Videos for Fintech

1. Increased user engagement and conversion rates

One of the primary benefits of using animated explainer videos in fintech is their ability to boost user engagement and conversion rates. These videos captivate users' attention with visually appealing graphics, animations, and storytelling. By presenting information in a concise and engaging format, explainer videos create a compelling user experience that encourages viewers to take the desired action, such as signing up for a service or downloading an app. The engaging nature of explainer videos increases the likelihood of users staying on the website or landing page, exploring further, and ultimately converting into customers.

2. Clear Communication

Explainer videos excel at conveying complex information in a clear and concise manner. For fintech companies, this is invaluable in explaining the unique features and benefits of their products or services. By using visuals, animations, and simplified explanations, these videos make it easier for users to understand how the fintech solution works, what problems it solves, and why it is valuable to them. This clarity in communication significantly enhances user acquisition by ensuring that potential users have a comprehensive understanding of the fintech offering, leading to informed decision-making and increased conversion rates.

3. Enhanced Brand Recognition

In the competitive fintech landscape, establishing a strong brand presence is essential for user acquisition and retention. Animated explainer videos provide a powerful tool for enhancing brand recognition and recall. By incorporating brand elements such as logos, colors, and visual styles, these videos create a cohesive and memorable brand identity. When users encounter the brand's visuals and messaging across different channels, they are more likely to recall and recognize the brand, leading to increased trust, loyalty, and repeat business.

4. Emotional Connection with Users

Humans are wired to connect with stories on an emotional level. Explainer videos leverage storytelling techniques to create a narrative that resonates with users. By presenting relatable scenarios and showcasing how the fintech solution addresses users' pain points, these videos evoke emotions and create a sense of empathy. This emotional connection enhances user acquisition by fostering a deeper engagement with the brand, building trust, and ultimately driving users to take action.

5. Cost-effective Marketing Tool

Traditional marketing methods, such as print ads or TV commercials, can be costly and may not provide the same level of engagement and impact as animated explainer videos. Compared to other marketing strategies, explainer videos offer a cost-effective solution with a high return on investment. Once created, these videos can be shared across multiple platforms, including websites, social media, email campaigns, and presentations, reaching a broader audience without incurring significant additional costs. Additionally, explainer videos can be easily updated or modified to reflect changes in the fintech company's offerings or target market.

User Acquisition and Retention for Fintech

By leveraging the benefits of animated explainer videos, fintech companies can effectively engage and acquire users by clearly communicating product features and benefits, enhancing brand recognition, creating emotional connections, and utilizing a cost-effective marketing tool. These videos not only attract users but also contribute to user retention by establishing a strong brand presence and delivering a compelling user experience that encourages long-term engagement with the fintech offering.

Through analytics and tracking tools, companies can monitor the performance of their explainer videos, gaining insights into user engagement, conversion rates, and retention metrics. This data allows fintech companies to continuously optimize their videos, identify areas for improvement, and make data-driven decisions to enhance user acquisition and retention strategies.

Are you a Fintech Company looking for a video production company in Bangalore? Contact us and let’s get your product simplified for your users today!

Get in Touch