4 Reasons why Finance Explainer videos are important for Financial Advisors

Finance Explainer videos are short one or two-minute animated videos that include a series of images accompanied by a professional voiceover, sound effects, and background music.  The most popular type of explainer video is the “whiteboard video”, which shows a hand drawing images on the screens that are accompanied by narration.

Have you considered a Finance explainer video as a great tool to differentiate your financial advisory firm?

Here are four reasons to consider creating one this year:

Reason 1:   Video can make the complex information seem simple

A video allows us to explain even complex information in a simple, fun way.  These videos often include a story, which makes them even more conversational and non-intimidating.  This is especially important in selling financial advice, since this may be one of the most complex sales out there.  Remember, the average person, no matter how educated, often lacks the basic understanding of how money and investing work.   If we ever forget that, reminders abound:

71% of people in another survey said they thought they could eliminate all portfolio risk through a diversified portfolio, so what we need to do is make financial planning and investing seem simple.  Finance explainer video can do th at.

Reason 2:  Video can eliminate the “fear factor”

Surveys show there’s a huge amount of fear around hiring a financial planner or investment manager.  From fears of being ripped off, to fears of looking stupid or revealing past money mistakes, it’s a tough sell to get someone experiencing that anxiety to take action.  To get past that block, your firm has to appear very approachable.  The animation plus friendly voiceover of the Finance explainer video is the perfect way to do just that.

When your website has this type of video on its homepage, and your competition doesn’t, it just makes your firm seem all the more friendly and relatable.  This is especially important to tap into the younger generations and women investors who put a high value on communication.

Reason 3:  Video is engaging

Explainer videos, and more specifically whiteboard videos, have been shown to engage people across all demographics.

Since every share or recommendation is essentially free marketing for your firm, this is an important benefit.

Reason 4:  Video is a first-rate multi-tasker

An explainer video is a great multi-tasking tool:

On your website, it engages visitors and can reduce bounce rates. It also very effectively differentiates your firm. Post it on social media to drive more attention to your firm and your website. Include it in an email to engage those on your drip email lists. Investing once in the video will yield a tool that you can use across all these platforms.

All of these reasons provide compelling evidence on why you should consider creating a finance explainer video

There are many talented scriptwriters and animators out there, without a doubt.  However, not everyone understands the unique mindset of today’s investor.   For the most effective finance explainer video, your best bet is to work with a team that specifically understands the fears and concerns of your prospective clients.  A video that addresses those concerns will help differentiate your firm most effectively.