Banks, fintechs, and crypto platforms are ramping up investment in fraud prevention and identity verification (IDV), positioning it as the next layer of cyber defense. According to Regula’s global survey, The Future of Identity Verification: 5 Threats and 5 Opportunities, banks are leading this trend: the share of institutions intending to increase IDV budgets by more than 50% is nearly tripling—from 4.4% to 15% in just two years.
Moderate increases in identity verification budgets are becoming common across all financial services. Roughly a third of banks and crypto firms and a fifth of fintechs expect 10-20% increases. Meanwhile, at least every third organization in the wider financial services ecosystem is considering more substantial growth of 20-50%.
At the same time, the share of companies aiming at major budget hikes—over 50%—has nearly doubled in both crypto and fintech, reaching about 17% of organizations in each sector today.
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The trend is spreading
This recognition is no longer confined to the financial sector. Aviation companies are close behind, with 17% now considering 50%+ budget hikes, while healthcare organizations are beginning to follow suit, though at a more moderate pace, with around 10% expecting such major increases. Across all industries, two-thirds of businesses have already increased IDV spending, and nearly half are preparing for further double-digit growth.
An important shift is also happening in the boardroom: C-suite leaders are taking direct ownership of identity verification, making it a pillar of enterprise resilience. Nearly one in five are now looking forward to increasing their fraud prevention and IDV budgets by 50% or more.
“Executives have finally woken up to the deepfake economy,” said Henry Patishman, Executive Vice President of Identity Verification Solutions at Regula. “They’re realizing that identity verification isn’t a cost of doing business anymore, but a growth engine. Just as cybersecurity became non-negotiable a decade ago, identity verification is now core infrastructure for trust in the AI era.”
Geographically, the US leads the surge, with 22% of American companies aspiring 50%+ budget increases—the highest share worldwide. The UAE, Singapore, and Germany are also showing strong mid-range growth, with about a third of organizations aiming to raise spending by 21–50%.
From box-checking to trust infrastructure
Behind this acceleration is a shift in mindset: identity verification has evolved from a tactical compliance step into a strategic enabler of digital trust.
- 24% of companies now say IDV must become the core of their trust management strategy.
- 27% want it fully integrated across departments—from onboarding and fraud prevention to marketing and customer support.
As businesses build AI-driven ecosystems, the cost of weak identity controls is skyrocketing—from regulatory fines to reputational damage and fraud losses. The new wave of investment reflects a broader realization: trust has become an infrastructure challenge.
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