Regional storytelling fuels BFSI ad surge as vernacular investments rise up to 30%

BFSI advertisers are widening their regional playbook as vernacular content emerges as a more effective tool to explain complex financial products and build trust among first-time users. Industry leaders say consumers are showing a clearer understanding of offerings when they are communicated in their native languages, prompting brands to rethink their content and media mix for 2025.

Experts said BFSI marketers are increasingly recognising that regional storytelling builds trust, improves recall and drives conversions, especially in insurance, savings and micro-credit. This has translated into a 25–30 per cent rise in investments in vernacular communication as brands push deeper into Tier II, Tier III and rural markets. Reflecting this momentum, annual reports show Indian banks raised their advertising and publicity spends to Rs 4,935 crore in FY25, up 14.2 percent year-on-year, with spends rising 43.2 percent over two years and surging 161.2 percent over five years.

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Executives tracking the trend say the shift is no longer about translating existing English scripts. Brands are investing in culturally rooted narratives, hyperlocal storytelling and region-specific influencers to tap new audience segments.

Videos, Voice & Chat

From insurance to digital payments, BFSI brands are using vernacular videos, voice content and chat interfaces to address product hesitations in Tier II and III geographies. This approach is helping reduce drop-offs in the purchase funnel, as consumers feel more confident engaging with financial information in familiar linguistic and cultural contexts. Agencies estimate that the next phase of growth will come from deeper localisation across dialects, especially in high-potential states like Uttar Pradesh, Maharashtra, Tamil Nadu and West Bengal. With competition intensifying, marketers are expected to scale vernacular-led communication further through performance campaigns, conversational AI and creator partnerships.

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Among insurers, HDFC Life has been one of the early movers in building a structured regional strategy. Pritika Shah, Head of Marketing, said the company launched this approach two years ago, starting in the South and expanding to the East this year. Spends have risen year-on-year and are set to grow further as the company intensifies efforts in newer markets.

“Regional-focused efforts allow us to dig deeper and focus on insights and capture cultural nuances, which make the campaign more relevant and evocative to the TG,” she said. For its Southern campaign, the brand focused on the role of preparation in achieving success, tapping into the insight that planning for a child’s education is a key trigger for life insurance purchases in the region. In the East, the insight shifted to lifestyle maintenance as a top financial goal, captured through regional actor Abir Chatterjee’s life lessons on financial preparedness. Across categories and products, the brand has also scaled up vernacular communication to build a stronger consumer connect.

Puneeth Bekal of HDFC Securities on performance marketing. Read more here

As vernacular strategies mature, some BFSI players are integrating localisation not just in advertising but across customer journeys. IndiaFirst Life is one such example. The insurer is widening its media mix and expanding across more states, aligned with its growing vernacular content footprint.

For major campaigns, it develops state-specific assets and partners with local stakeholders, improving visibility beyond metros. Regional spends are rising with budgets directed to markets where vernacular communication drives the strongest engagement.

Subhankar Sengupta, Chief Marketing Officer & Country Head – Alternate Channels, IndiaFirst Life Insurance, further explained the importance of using regional languages in the campaigns and said, “Using local languages helps us connect better with people. Earlier, most information was only in English, but now, real local content is what matters. In Life Insurance, we have moved towards using genuine regional languages for our messages.”

IndiaFirst Life has adopted a platform-first localisation strategy by expanding its website and self-service journeys into six regional languages, with plans to scale to 13. Its IRIS chatbot and WhatsApp support offer multilingual assistance, improving clarity during sign-ups. Educational series like “Life Insurance Ki Kitaab” and #MushkilBaatAasaan break down complex terms into simple vernacular explainers, while campaigns such as “Zimmedariyaan Humse Baantiye, Halka Lagega” are adapted to regional cultures.

Beyond insurance, mortgage lenders are also witnessing the impact of vernacular content. Aadhar Housing Finance, which caters largely to Tier 2, 3 and 4 consumers, has built its marketing around linguistic and cultural localisation.

Noel Mascarenhas, Head of Marketing at Aadhar Housing Finance Ltd, added that, “Given the nature of our target consumers, a significant amount of our spends & campaigns are targeted regionally. Be it our marketing material or operational documents, everything that is customer facing, we try and simplify it to the best we can in regional languages.” 

The brand’s communication is rooted in six regional languages, guided by a localisation-first budgeting approach. In a category where products often feel technical or intimidating, using local dialects helps demystify finance and build authenticity. Aadhar treats vernacular content as cultural transcreation rather than translation, using regional idioms, relatable scenarios and visual cues that mirror small-town aspirations, aligning with its vision of enabling homeownership for aspirational India.

Another BFSI player betting big on local culture is HDBFS. Its association with the Tamil Nadu Premier League marked its first ATL campaign in the state, boosting visibility and strengthening its on-ground distribution network. With a digital-first approach, the company is crafting highly customised regional content and aims to keep tapping high-potential markets.

“The effectiveness of communication hinges upon the genuine effort to address customers within their unique language and cultural context. When a brand excels at this, it fosters a profound sense of understanding, which in turn builds customer confidence,” highlighted Anand Bhatia, chief data and analytics officer, HDBFS. 

To that end, the brand used the phrase “Vetri Nichayam” during TNPL to tap a familiar Tamil reference, and for North Indian audiences adopted “Jeet Pakki,” ensuring its message of assured success felt authentic across regions.

Agency perspective

Shradha Agarwal, Co-founder and Global CEO of Grapes Worldwide, said the creative process for vernacular BFSI campaigns varies significantly across states, as brands adapt to distinct cultural and linguistic contexts. She added that investments in vernacular communication have risen by nearly 25 to 30 per cent, driven by brands expanding deeper into Tier II, Tier III and rural markets. She said, “When devising our creative process, we prioritize a culture-oriented, market-specific approach. Proper care is taken to keep the core message intact while molding the insight, tone, and visual cues as per the nuances of the particular region.” 

She added that integrating local references and collaborating with regional creators helps brands connect more deeply with community-level financial decisions. This enables regional stories that align with the core brand idea while feeling native to the communities they address.

According to Agarwal, within BFSI, categories such as micro-loans, savings products and insurance benefit most from regional storytelling. These offerings rely heavily on trust, which strengthens when communication reflects local language, values and lived realities. 

“It is important to understand that merely translating the language is not enough; rather, there should be a focus on translating the intent. It is the core pillar on which BFSI brands can forge meaningful connections and build credibility among the local audience,” she said.

Improved trust & understanding

Across the board, experts say vernacular-led strategies have significantly improved comprehension, reduced hesitation and boosted trust. Consumers are more willing to engage with complex financial information when it is presented in familiar linguistic and cultural contexts. 

Sengupta said IndiaFirst Life’s customer trust metrics have strengthened in tandem with its vernacular rollouts. The brand reported a 16.5 percent rise in its NPS this year, reaching 57 and placing it among category leaders. Initiatives such as Nominee Central and IRIS 3.0, which offer education and support in local languages, have improved customer understanding and response rates.

“In short, giving information in local languages makes our customers happier and helps them complete their journeys more confidently. They feel happier when the content “speaks their language,” he said.

Mascarenhas noted that vernacular content accelerates decision making and builds stronger brand affinity. “With local languages, the ease of understanding also comes into play. Consumers are asking more informed questions, demonstrating better clarity on loan terms, and showing increased confidence in our processes. That trust translates into faster decision-making and stronger brand affinity,” he explained. 

Bhatia echoed the sentiment, noting that the industry now recognises the critical importance of context and localisation. HDBFS’s network of local branches helps the brand design contextual communication that resonates deeply with customers. Its associations with Lyca Kovai Kings and the Haryana Steelers further reflect its intent to align with consumer media habits and engage audiences in their cultural contexts.

“It is a universal truth that consumers prefer to consume content in the language they are most comfortable with. For us, this means not only providing content in various regional languages but to also capture cultural nuances and local references to help us engage with customers more effectively,” concluded Shah.