PYMNTS Intelligence Report: Identity Friction Causes $34 Billion Revenue Drain
New industry data reveals financial institutions lose nearly $34 billion in revenue annually due to identity verification friction and drop-off.
A comprehensive research report published by PYMNTS Intelligence reveals that outdated customer identification processes are creating massive financial drag for regulated firms. According to the study, financial institutions lose nearly $34 billion in revenue annually because of identity verification failures, high-friction user drop-offs, and abandoned account setups.
Overcoming the identity friction trade-off
The PYMNTS Intelligence research indicates that over 76 percent of financial services firms report missing key growth opportunities due to overly complex Know Your Customer (KYC) and Know Your Business (KYB) processes. Slow manual review queues and multi-step document uploads force legitimate users to abandon registration before completing onboarding.
Firms are discovering that security does not have to come at the expense of growth. By transitioning from multi-minute document processing to sub-150ms edge telemetry verification, deepidv allows legitimate users to enroll instantly while blocking malicious automation scripts across KYC and KYB workflows.
Identity Friction Report FAQ
- What drives the $34 billion revenue loss in identity verification?
- The loss stems from legitimate users abandoning long, high-friction onboarding flows, combined with direct financial fraud losses caused by undetected synthetic identities. Over 76 percent of financial services firms report missing key growth opportunities due to overly complex KYC and KYB processes.
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