Getting the Most Out of a Financial Explainer Video

As attention spans continue shrinking and consumer expectations keep growing, financial services must find innovative ways to communicate their offerings effectively. Financial institutions, fintech companies, and financial advisors often face a common problem—how to explain complicated concepts without losing their audience in the process. This is where a financial explainer video comes into play.

Explainer videos simplify complex information, making them perfect for the finance industry, where services like retirement planning, investment options, tax filing, and insurance policies can be overwhelming for the average consumer. But creating an explainer video can be a significant investment. To ensure you’re maximizing the return on this investment, we’ll cover key strategies to help you get the most bang for your buck with a financial explainer video.

What is a Financial Explainer Video?

A financial explainer video is a short, engaging video designed to explain complex financial services, products, or concepts in an easy-to-understand manner. Typically, these videos are 60 to 120 seconds long (with 60-90 being the real sweet spot) and utilize a combination of visuals, voiceovers, animations, and storytelling to deliver concise and clear messages.

These videos are used by financial institutions, fintech startups, insurance companies, and wealth management firms to simplify complex topics. Whether explaining how a mortgage works, the benefits of investing in mutual funds, or the process of applying for a loan, explainer videos turn abstract ideas into digestible and compelling narratives.

Financial explainer videos can vary in style:

• Animated videos: Perfect for visualizing abstract or complicated ideas that might be difficult to portray through live action.
• Live-action videos: These provide a more personal touch, with real people explaining concepts in a relatable manner.
• Hybrid videos: Combining live action and animation for a dynamic and visually interesting experience.

Why Financial Explainer Videos Work

Financial explainer videos have become an indispensable tool in the finance sector. Here’s why:

Clarity and Simplicity

Financial services are notorious for their complexity. Consumers often struggle to grasp terms like “compound interest,” “asset allocation,” or “debt consolidation.” A well-crafted financial explainer video takes these terms and simplifies them with clear examples and visuals.

By using relatable analogies or visual metaphors, explainer videos break down intricate topics in ways that are easy to understand. For instance, an animated explainer video could depict how compound interest works over time, helping viewers grasp the benefits of long-term investment.

Increased Engagement

Video content is significantly more engaging than text. Studies have shown that people retain 95% of a message when they watch it in a video compared to 10% when reading it in text. In addition, explainer videos hold viewers’ attention better because they combine auditory and visual elements, making it easier to understand and retain information.

In the financial industry, this is particularly important because attention spans are short, and many people may shy away from content that appears overly technical or dry. A financial explainer video keeps viewers engaged and interested while educating them about key financial products and services.

Improved Conversion Rates

Financial explainer videos can significantly increase conversion rates. Whether you’re aiming to get more sign-ups, encourage online transactions, or simply educate potential clients about your services, the impact of video is undeniable.

According to research, landing pages that feature an explainer video see conversion rates increase by up to 80%. A financial company can use explainer videos to turn prospects into leads, leads into customers, and customers into repeat clients.

Building Trust and Credibility

Trust is paramount in the financial industry. Consumers want to feel confident in the companies they choose to handle their money. An effective financial explainer video builds trust by presenting financial concepts in a transparent and approachable way.

Through storytelling, businesses can position themselves as trusted advisors rather than just service providers. An explainer video can also use testimonials, real-world examples, and case studies to further reinforce credibility. The more approachable and helpful the video feels, the more likely the audience is to trust the brand behind it.

Maximizing ROI with a Financial Explainer Video

To truly get the most value out of your financial explainer video, you need to take a strategic approach that maximizes return on investment (ROI). Here’s how:

Target the Right Audience

Identifying and targeting the right audience is crucial for success. Different financial products cater to different demographics. For example:

• A video on retirement planning would be aimed at people in their 40s or 50s.
• A video explaining student loan refinancing would target recent graduates or young professionals.
• A fintech app video might appeal to millennials and Gen Z who value tech-driven financial solutions.

Understanding your audience’s pain points allows you to craft a message that resonates with them, ensuring that your explainer video meets their needs and drives them toward action.

Emphasize Quality Over Quantity

When creating a financial explainer video, quality matters more than length. Aim to deliver a clear, concise message in under two minutes. Shorter videos are more likely to be watched in full, and they tend to have higher engagement rates.

Focus on making every second count. Use professional scripts, quality visuals, and smooth animations to communicate your core message without unnecessary filler.

Optimize for Search Engines

To maximize visibility, it’s important to optimize your financial explainer video for SEO. Use your main keyword, “financial explainer video,” in the title, description, and tags to help search engines understand the content of your video. This will make it easier for potential clients to find your video when they search for financial services.

Embedding your explainer video on your website’s homepage or a dedicated landing page also boosts SEO, as Google favors websites with multimedia content. Share the video across social media platforms, include it in email marketing campaigns, and promote it on YouTube to expand its reach.

Track Key Performance Indicators (KPIs)

To gauge the success of your financial explainer video, you need to track the right KPIs. Some metrics to monitor include:

• View count: How many people have watched your video.
• Engagement rate: How long viewers are watching the video and whether they’re dropping off early.
• Click-through rate (CTR): How many viewers click on your CTA after watching the video.
• Conversion rate: How many people take the desired action (e.g., sign up for an account, request more information, or make a purchase).

Analyzing these metrics will help you understand what’s working and what can be improved for future videos.

Steps to Create an Effective Financial Explainer Video

Creating an impactful financial explainer video is a multi-step process. Here’s how to do it right:

Define Your Core Message

Before production begins, define the main message you want to convey. Are you promoting a new financial product? Explaining how a service works? Educating customers about an industry trend? Your message should be specific, focused, and aligned with your audience’s needs.

Choose the Right Style

Different styles of videos suit different objectives:

• Animated videos are great for simplifying complex financial data through visual storytelling.
• Live-action videos are ideal when you want to connect on a personal level with testimonials or company representatives explaining concepts.

Develop a Strong Script

Your script is the foundation of your financial explainer video. It needs to be clear, concise, and compelling. Avoid jargon or overly technical language, and instead, focus on delivering a narrative that speaks to the viewer’s pain points and offers a solution.

Work with Professionals

Hiring a professional video production company like Digital Brew ensures that your video has high production value. Expert animators, scriptwriters, and voiceover artists will help your video stand out and convey your message with clarity and polish.

Include a Strong Call to Action

A financial explainer video should always end with a clear call to action (CTA). Whether it’s encouraging viewers to visit your website, contact your team, or download a whitepaper, your CTA should guide the viewer toward the next step in their journey.

Budget-Friendly Tips for Financial Explainer Videos

While high-quality videos typically require some level of investment, there are several ways to create a cost-effective explainer video without sacrificing quality:

Repurpose Existing Content

If you already have blog posts, whitepapers, or case studies on the subject, repurpose this content into a video script. This can save you time and ensure that your video aligns with the messaging used across your other marketing materials.

Use Stock Footage and Templates

Leverage stock footage or pre-designed animation templates to reduce production costs. Many video platforms offer affordable packages that allow you to customize videos while keeping expenses low.

Opt for Animation

Compared to live-action shoots, animation gives you the freedom to illustrate abstract financial concepts and is easier to produce than coordinating actors, locations, and set design for a live shoot.

Keep It Short and Sweet

Shorter videos require less production time and budget, and they tend to perform better in terms of engagement. Aim for 60 to 90 seconds to get your point across without losing viewer interest.

Brewing Financial Explainer Videos

A financial explainer video is a strategic investment that can help financial companies communicate complex ideas clearly, engage potential clients, and drive conversions. By focusing on clear messaging, targeting the right audience, and implementing cost-effective production strategies, businesses can create high-quality videos that deliver a strong return on investment.

With the finance sector becoming increasingly competitive, having an engaging and educational explainer video can set your business apart, build trust, and enhance brand credibility. Whether you’re explaining a new product, simplifying financial concepts, or introducing your services to a broader audience, a well-executed financial explainer video is one of the most effective marketing tools you can have.

And what’s great about working with an agency like Digital Brew is that we’ve got the expertise in the space to help guide you to success. Because, while we love making amazing videos, our real goal is always to make videos that make you money.  So if you’re ready to get started on your new video or just want to know a little more about our process, you can always reach out to us here.

Let’s Brew This!