Regula has recently published a study that delves into the future of IDV (Identity Verification) in banking and fintech, predicting significant shifts in 2026.

The report, titled What’s Reshaping IDV in Banking & Fintech: 2026 Trends and Predictions, indicates that biometric verification is now the primary target for cyber threats within the digital identity verification process. Across both banks and fintech companies globally, at least one-third of firms have experienced impersonation fraud through biometric checks.

This rise in fraud has led to a greater emphasis on robust IDV measures. Survey results from multiple regions—such as the US, UAE, Germany, and Singapore—indicate that biometric stages are often the entry points for fraudulent activities like deepfakes and synthetic identities.

These methods exploit the reliance on visual or behavioral data captured via cameras or microphones during face-matching or liveness-detection processes. Consequently, ensuring the integrity of these verification stages is critical to mitigating risks.

Addressing AI-driven fraud with an integrated solution

To counteract such threats, Regula’s research highlights the need for a more cohesive and intelligent IDV approach. Nearly half of the respondents in the survey recommend integrating biometric checks, document verification, and risk analytics into adaptive workflows.

This shift towards comprehensive platforms is driven by both operational necessity—due to workforce shortages—and technological advancements aimed at detecting and mitigating AI-generated fraud more effectively. These systems are expected to streamline the IDV process while also enhancing accuracy and reducing false positives.

Additionally, with over three-quarters of financial institutions struggling with insufficient staff for fraud prevention tasks, automating routine checks and intelligently routing complex cases is crucial. This approach can help handle larger volumes of verification requests without the need to expand teams, thereby maintaining efficiency and accuracy.

Furthermore, as identity verification transitions from a mere regulatory compliance task into a competitive advantage, banks and fintechs are increasingly aligning their IDV investments with customer trust and retention goals. Metrics like false-negative rates are now being closely monitored alongside traditional compliance measures to ensure enhanced user experience and security.