83% of Financial Firms Rate ID Systems Highly Despite Customer Friction

Financial firms are highly confident in their digital identity systems, despite inconsistencies and customer friction, according to the January 2026 PYMNTS Intelligence report "Digital Identity Verification in the Age of Bots and Agents." The survey of 350 companies across various sectors revealed that 76% of financial firms generate most of their revenue through digital channels.

Yet, 74.6% of firms reported inconsistent results from their verification technology. Notably, 83.1% of financial firms rate their systems as top-tier, compared to 74.6% across other industries. Familiarity with their tools and regular audits contribute to this confidence. However, 76% of financial firms say identity processes hinder their ability to acquire new customers or expand into new markets, with onboarding abandonment and regulatory uncertainty also limiting innovation.

The cost of identity failures is estimated at 3% of revenue, or about $34 billion annually. Advanced platforms utilizing global identity systems report a 92.3% improvement in KYC and KYB processes, suggesting that better technology can reduce customer friction while maintaining necessary controls.