Building a Next.js application with Clerk for authentication and Neon's Serverless Postgres with Drizzle ORM requires careful consideration of compliance with standards such as SOC 2 and HIPAA, multi-factor authentication, and user management. Using Clerk enables seamless addition of advanced authentication and user management features to the application while complying with data security regulations by storing personally identifiable information in their compliant infrastructure. The application uses a complete example architecture that includes Vercel serverless hosting, Next.js application direction for users to Clerk for authentication, Clerk redirection back to the Next.js application after successful authentication, and Neon's Serverless Postgres database management using Drizzle ORM. By following this guide, developers can build an effective authentication and authorization system into their application while leveraging the benefits of Clerk and Neon's services.