Amanda Hodgetts-Martin, director of risk management at Branch, said traditional Know Your Customer (KYC) verification systems are blocking some legitimate customers from accessing financial services, a challenge she linked to the rise of gig and contract work.
“Identity verification plays a critical role in the KYC process and compliance. A significant portion are legitimate customers but are blocked by traditional KYC methods. The ability to create automated decisions around different inquiry characteristics has been incredibly helpful,” Hodgetts-Martin said in a Persona case study.
The issue comes as more Americans take on gig and contract work without conventional financial records often required for standard identity verification.
The Federal Reserve reported that 20% of U.S. adults performed gig work in the prior month based on 2024 data, rising to 26% among adults ages 18 to 29. The Federal Deposit Insurance Corporation (FDIC) reports about 6% of U.S. households are unbanked, with higher rates among lower-income groups, including many gig and contract workers.
In practice, companies like Branch say these gaps can prevent legitimate users from passing identity checks during onboarding. According to the Persona case study, Branch serves employees and contractors across multiple industries who may not pass traditional KYC processes, including first-time entrants to the financial system and individuals with limited public records. The company uses Persona for identity verification and provides digital wallets, fee-free checking accounts, and instant wage access.
Persona also offers configurable verification systems that allow platforms like Branch to confirm identity through multiple methods rather than a single rigid process. The company says it does not sell personal data or use it for artificial intelligence or model training.
Hodgetts-Martin oversees fraud prevention and compliance at Branch. Founded in 2015 and headquartered in Minneapolis, the company provides digital wallets and instant wage access to W-2 and 1099 workers. Branch partnered with Uber to launch the Uber Pro Card, offering drivers and couriers instant payments and financial tools.
The Federal Trade Commission has signaled increased scrutiny of digital identity verification systems, including allowing limited flexibility for companies that use data solely for verification purposes and do not retain or repurpose it beyond compliance needs.
