Personas That Work: Building Around Real Psychological Needs, Not Demographics

Let’s be honest: Most financial services brands still build personas based on demographics or outdated assumptions. Labels like “Millennial,” “Affluent,” or “High-Value” might seem useful, but they often miss the mark on what truly drives customer behavior.

At Shiny, we see this disconnect regularly. Clients come to us with personas that don’t reflect the current psychological needs of their audience. Our job is to help them ruthlessly challenge these assumptions and build personas grounded in real, present-day motivations.

The problem with demographic-based personas

Relying solely on demographics can lead to blind spots. For example, our 2024 Finsights study learned that 64% of consumers use digital wallets — across generations, not just among Gen Z​. So if you’re thinking about tech usage being bound by age, or not thinking about the role that convenience plays in your audience’s lives, you’re missing out on a great opportunity to better motivate your target audience.

Introducing the Finsights segments

To move beyond surface-level personas, we conducted a study of US adults’ attitudes towards financial services and from that identified four distinct profiles based on attitudes, behaviors, and motivations:

– Engaged & Trusting: These individuals are confident in managing their finances and have a positive outlook towards financial institutions. They are proactive in seeking financial information and are open to new financial products and services.

– Overwhelmed & Worried: This segment feels anxious about their financial situation and often lacks confidence in making financial decisions. They may feel underserved by financial institutions and are in need of guidance and support to navigate their financial lives.

– Jaded & Skeptical: Individuals in this group have had negative experiences with financial institutions, leading to distrust and skepticism. They are cautious in their financial dealings and may be resistant to traditional financial advice or products.

– Cautious & Concerned: This segment is careful and deliberate in their financial decisions. They are concerned about financial security and prefer to stick with familiar financial products and institutions, often requiring reassurance before trying something new.

These segments cut across age, income, and other traditional demographics, providing a more nuanced understanding of your audience.

Why psychological needs matter now more than ever

In today’s competitive landscape, understanding the psychological drivers of your customers is crucial. Economic pressures, technological advancements, and shifting priorities mean that consumers’ needs and behaviors are constantly evolving.

By focusing on psychological needs:

– You uncover what truly motivates your customers, leading to more effective messaging and product offerings.
– You identify and address pain points, improving customer satisfaction and loyalty.
– You differentiate your brand by showing a deep understanding of your customers’ unique challenges and goals.

Building personas that reflect reality

Here’s how to create personas that are both accurate and actionable:

1. Start with Data: Use research like our Finsights study to understand the current attitudes and behaviors of your audience.
2. Identify Psychological Drivers: Look beyond demographics to understand what motivates your customers. Are they seeking security? Convenience? Innovation?
3. Segment Accordingly: Group customers based on shared psychological needs and behaviors, not just age or income.
4. Tailor Your Messaging: Develop communications that speak directly to the motivations and concerns of each segment.
5. Test and Refine: Continuously gather feedback and adjust your personas to reflect changes in customer behavior and market conditions.

What to do now

Start by questioning everything you think you know. Validate your personas against actual usage patterns. Dig into platform behavior, financial goals, digital comfort, emotional stressors.

Once your personas reflect reality, build everything from that place: your Briefs, your journeys, your concepts. Because if you’re not ruthlessly customer centric from the start, you’re wasting time and budget on work that might look good but won’t move the needle.

And in this market, work that blends in, is work that generates the worst response of all —indifference.