Banks, fintechs, and crypto platforms are significantly increasing their investment in fraud prevention and identity verification (IDV) technologies, positioning them as a critical component of cyber defense. According to Regula’s global survey, “The Future of Identity Verification: 5 Threats and 5 Opportunities”, banks are at the forefront of this trend, with the proportion of institutions planning to raise their IDV budgets by over 50% nearly tripling from 4.4% to 15% within two years.
Regula’s new global survey indicates a notable rise in identity verification budgets. Moderate increases in IDV budgets are now common across financial services, with approximately a third of banks and crypto firms and a fifth of fintechs anticipating 10-20% budget increases. Concurrently, at least one in three organizations in the broader financial services sector is considering more substantial growth of 20-50%. The share of companies targeting major budget hikes—over 50%—has nearly doubled in both the crypto and fintech sectors, now reaching about 17% of organizations in each.
This trend is extending beyond the financial sector. Aviation companies are closely following, with 17% currently considering budget increases of 50% or more, while healthcare organizations are also beginning to adopt this trend, albeit at a more gradual pace, with approximately 10% expecting such significant increases. Across all industries, two-thirds of businesses have already increased their IDV spending, and nearly half are preparing for further double-digit growth. C-suite leaders are also taking direct ownership of identity verification, integrating it as a cornerstone of enterprise resilience, with nearly one in five executives looking to increase their fraud prevention and IDV budgets by 50% or more. Henry Patishman, Executive Vice President of Identity Verification Solutions at Regula, stated, “Executives have finally woken up to the deepfake economy. 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 United States is leading this surge, with 22% of American companies aspiring to 50%+ budget increases, which is the highest share globally. The UAE, Singapore, and Germany are also demonstrating strong mid-range growth, with about a third of organizations in these regions planning to raise spending by 21–50%.
This acceleration reflects a fundamental shift in perspective: identity verification has evolved from a tactical compliance measure into a strategic enabler of digital trust. Currently, 24% of companies consider IDV essential to their trust management strategy. Additionally, 27% aim to fully integrate IDV across various departments, encompassing onboarding, fraud prevention, marketing, and customer support. As businesses develop AI-driven ecosystems, the financial and reputational costs associated with weak identity controls, ranging from regulatory fines to fraud losses, are increasing substantially. The current wave of investment underscores a broader understanding that trust has become an infrastructure challenge.
The report, “The Future of Identity Verification: 5 Threats and 5 Opportunities”, is a global survey commissioned by Regula and conducted by Censuswide, a market research consultancy. It covers enterprises in the banking, fintech, aviation, healthcare, telecom, and crypto sectors, examining budget reallocation, deepfake-driven fraud mitigation, and the development of cohesive identity frameworks to support growth and compliance.
Regula is a global developer specializing in forensic devices and identity verification solutions. With over 30 years of experience in forensic research and possessing a comprehensive library of document templates, Regula develops technologies for document and biometric verification. Its hardware and software solutions are utilized by over 1,000 organizations and 80 border control authorities worldwide to enhance client service while maintaining safety, security, and speed. Regula was recognized in the 2025 Gartner® Magic Quadrant™ for Identity Verification.
