As more financial services move online, proving that a customer is really who they claim to be has never been more important. Banks and fintech companies are facing a surge in fraud attempts, more demanding regulations, and customers who expect onboarding to take seconds, not minutes. A large global survey sheds light on the major IDV trends in banking and fintech shaping identity verification (IDV) going into 2026.
Fraud Is Evolving Fast — Especially Around Biometrics
Biometric checks like selfies or short liveness videos have become a standard part of digital onboarding. Unfortunately, they have also become a prime target for fraudsters. The survey shows that criminals are heavily attacking this step of the process.
Common fraud tactics include:
- Edited or manipulated photos
- AI-generated deepfake videos
- Fake or stitched-together identities
- Use of someone’s stolen biometric data
- Traditional document tampering paired with digital tricks
The takeaway? As identity checks get smarter, so do the people trying to break them.
How Banks and Fintechs Verify Users Today
Right now, most companies use a combination of methods to confirm who is on the other side of the screen:
- Passwords or one-time codes
- ID document capture
- Face or biometric matching
- Background and sanctions checks
- Manual review for cases that seem suspicious
This layered approach works, but it can still be slow and sometimes inconsistent. Many businesses say their ideal setup would be simpler, more connected, and more reliable across all regions.
The Push Toward Automation
Automation has become a huge priority. Nearly half of surveyed banks and even more fintechs have automated most of their verification steps.
But automation doesn’t replace people. Companies still need human experts to examine difficult cases, especially when fraud attempts involve subtle document manipulation or highly realistic deepfakes. The growing trend is toward smart automation supported by human decision-making where needed.
Why IDV Is Suddenly a Top Priority
One clear message from the survey: identity verification is no longer an “IT task.” It’s a strategic business issue.
- 71% of banks
- 75% of fintech companies
said that fighting fraud is one of their top organizational priorities.
Strong verification isn’t just about stopping criminals. It also:
- Builds customer trust
- Speeds up onboarding
- Helps companies expand to new markets
- Improves the overall customer experience
Businesses that invest in smarter IDV gain a real competitive edge.
What the Future of IDV Will Look Like
Businesses are moving toward more flexible, all-in-one platforms that connect every part of the verification process. Instead of separate tools for biometrics, documents, and watch-lists, companies want a unified system that can automatically route tasks based on risk.
These next-generation systems will offer:
- Risk-based checks that adapt to each individual
- Faster decisions with fewer manual steps
- Consistency across web and mobile apps
- Scalability as companies add new markets or regulations
The ultimate goal is simple: verification that is both strong and invisible, only adding friction when absolutely necessary.
What Banks and Fintechs Are Focusing on Next
Based on the research, the main areas of investment for 2026 include:
- Better biometrics and liveness detection
- More automation combined with expert review
- Improved monitoring and analytics to catch fraud early
- Modular technology that grows as the business grows
- Making verification smoother for legitimate customers
The industry realizes that fraud evolves constantly, so IDV must evolve just as quickly.
Final Thoughts
Identity verification is undergoing a major transformation. As fraud becomes more sophisticated and customers demand seamless digital experiences, banks and fintechs must rethink how they verify identities. The shift toward more automated, flexible, and biometric-strong systems is already happening. The companies that embrace these changes early will be better positioned to secure their platforms and offer faster, safer onboarding for their users.
Himani Verma is a seasoned content writer and SEO expert, with experience in digital media. She has held various senior writing positions at enterprises like CloudTDMS (Synthetic Data Factory), Barrownz Group, and ATZA. Himani has also been Editorial Writer at Hindustan Time, a leading Indian English language news platform. She excels in content creation, proofreading, and editing, ensuring that every piece is polished and impactful. Her expertise in crafting SEO-friendly content for multiple verticals of businesses, including technology, healthcare, finance, sports, innovation, and more.
