How financial services can harness the power of explainer videos

Alastair Lee Feb 1, 2022 2:00:43 PM

45% of people feel the finance industry is less trustworthy than it was five years ago, according to a Trust Pilot report. Why is that?

We can’t tell you exactly - but when words like ‘data protection’, ‘borrowing rates’ and ‘privacy’ are thrown into the mix, alarm bells start ringing.

Couple this with the fact that 55% of consumers value brand reputation and customer service over low interest rates or reduced fees and you can start to build a case for bucking that trend. But where to start?

Rebuilding trust starts with clear and effective communication that works to demystify complicated products and services. Which is why explainer videos are becoming increasingly popular!

What is an explainer video?

An explainer video is a short animated video used by businesses and organizations to succinctly communicate what they do and why. Explainer videos are especially good for communicating complex ideas simply. That’s because generally speaking, people like to be entertained and will learn more visually than they will from reading words and numbers.

How can financial services benefit from explainer videos?

1. They help build trust

An explainer video is not only able to turn an otherwise mundane topic into a fun, easy to follow form of communication - it also starts the process of building trust (something that not even the best finance deal can buy!). By giving new potential customers the answers to FAQs before they’ve been bombarded with unnecessary and scary jargon, you’re increasing the likelihood of turning them into a customer.

To get ideas and inspiration, watch this video from Co-op Communities about how car insurance is priced. They answer the question almost all prospective customers will have in a clear and transparent way.

2. They show personality

Look, you know and we know that you’re not scary! You’re just like everyone else, right? Well according to the stats above - wrong. It’s time to eliminate the fear factor.

An explainer video can be fun and entertaining and is the best way to start communicating. You can be both on brand and sympathetic towards your everyday person that doesn’t know their interest rates from their credit score. Having an explainer video front and centre when someone first visits your website invites them to click the play button and makes you far more relatable than your competitors.

This video from the Bank of America is a great example - it’s a relatable, approachable video that makes money management seem less daunting.

3. They explain complex topics simply

If you’ve been struggling to effectively communicate who you are, what you do and what value you can bring, then perhaps an explainer video is your answer. Especially when you’re selling an intangible product or service, engaging graphics and animations can help tell your story.

Car finance is a perfect example of a financial product that’s not all that easy to explain. However, with this animated video, Car Finance Made Simple quite literally makes it simple and easy to understand.

If you want to find out how an explainer video can specifically help you and your business, we’d be happy to help guide and advise. Just get in contact with our friendly team here.

In the meantime, watch our showreel of recent bespoke videos to see the range of animation styles we can create!

Written by Alastair Lee - Sparkol's Sales Development Manager