The evolution of identity verification is accelerating the future of fintech by turning the tide against fraud, improving KYC compliance, and unlocking new fintech use cases. Plaid's acquisition of Cognito in January 2022 has enhanced their identity verification product offerings, with over one-third of new customers purchasing Identity Verification (IDV) in Q4 2022. Fintechs are rapidly adopting IDV for KYC compliance, finding it easier to implement due to its no or low code solution, which reduces the risk of cross-team miscommunication and poor documentation. IDV is integral to onboarding and account funding, making sure users are who they say they are, and preventing crypto fraud, which has the biggest financial incentives for fraudsters. Emerging identity technologies like mobile driver's licenses may shift control of identity data towards government-based verification systems, giving consumers more control over their information, but also raising risks such as surveillance. While decentralized identities hold promise, they don't currently adhere to KYC guidelines, making them legally unpermissible. IDV technology is rapidly evolving to meet consumer and financial services provider needs, helping combat fraud, eliminate friction points, streamline user experiences, and more.