Continuous support from big investors and governments, along with affordable technology, are driving the growth of the FinTech sector. The banking sector, the lifeblood of economic growth for a nation, has been resistant to disruption so far. Following the 2008 financial crisis, trust in these legacy institutions was shaken, and how! Over the 10 year since then, there has been a push for the availability of accessible and transparent data, along with a significant decrease in the cost of computing power. Combine all these with the ubiquity of mobile devices and it is hardly surprising that millennials love FinTech. But how much do people really understand technology?
What are Explainer Videos?
With technological advancements come security risks. We have been reminded on more than one occasion in 2018 alone how hackers can easily penetrate the sturdiest of security protocols. So, even if millennials demand smart payment solutions, they are skeptical about new technologies. We can also not assume that every individual is aware of the technical jargon, while making financial decisions. Videos can easily help FinTech firms provide the needed information in an easy-to-understand way.
This is why explainer videos are becoming increasingly popular. Thanks to faster internet connections and high-end mobile devices, videos are more accessible today than ever before. Videos help to capture and contextualise the world with ease, especially for humans, who find meaning in moving images. This is why user engagement is higher for videos than any other form of content, according to an article on Forbes.
For a FinTech startup, explainer videos have the power to not only attract new customers, but also keep them interested in the offerings. But, how should FinTech companies use explainer videos?
For Funding from Big Investors
Whitepapers and market analysis reports are indeed important, especially when dealing with institutional investors. In addition, a well-designed explainer video could give a concise and engaging summary of the products and services the company offers. Venture capitalists and angel investors like to work with creative people; people they consider to be thought leaders.
Many FinTech firms have used videos to gain good traction on online crowd-funding platforms like Kickstarter. They have been able to explain complex technology to new users on these platforms in a simple and clear manner. And, most importantly, they have been able to create memorable experiences for users.
For Exposure Across Multiple Online Platforms
Once created, an explainer video can be embedded on the company’s homepage. It can be posted on YouTube, the world’s second largest search engine, and ranked third after Google and Facebook as one of the most visited sites. On average, 8 out of 10 people in the age bracket of 18 to 49 years, watch YouTube every month. This age group is important for FinTech companies, since they are early adopters of new technologies, and videos are a great way to capture their attention. Alternatively, videos are flexible enough to be incorporated into slideshow presentations and they can also be a useful feature of landing pages.
To Reach Out to the Older Generation
The millennial generation shows far more interest in new financial services than their predecessors. In the US alone, 85 million people belong to this category (all digital natives), who are more open to learning about new platforms than the 40 million GenXers, according to a report by McKinsey. And, 40 million is a substantial figure in terms of lost customers.
FinTech firms cannot be just bank on millennials to succeed. Videos can help companies spark interest among older people as well, who have so far only relied on the traditional banking system. By showing how a product or service can help negate existing bottlenecks and challenges, more people can be encouraged to use them. Tutorial videos can help to easily illustrate and show off applications and features of a new platform.
Explainer Videos Can Be Modified and Customised
In case a platform includes a new feature, the videos can be easily edited to showcase it. Creative experts can easily include new narratives or music and colour schemes, giving a fresh look to the content every time.
FinTech brands use explainer videos to lend a personalised touch to their offerings and give a face to the company that the target audience can relate to. Consumers crave for services that are focused on sales and origination, and videos can help provide just that. Rather than those smiling faces on advertisements and billboards, something that traditional financial services providers still rely on to a great extent, consumers would find a step-by-step tutorial much more useful. FinTech videos help people realise their need for and the existence of seamless financial services.