Banking and finance are the most crucial and pivotal sectors in an economy, as they are intuitively taking part in an individual’s property, money, and investments. However, cases of identity thefts, accounting frauds, asset appropriation, and money laundering are synonymous in the BFSI sector. In other words, the number of people misinterpreting their credentials or lying on resumes is highest in the BFSI sector. That’s why performing background verification is mandatory.

While background checking is becoming a norm in all sectors, banks and financial institutions conduct them at levels of employees. Due to advanced security needs and complex financial regulations, financial institutions must thoroughly choose who is qualified to handle company and customer’s privileged information and financial resources. Knowing the identity and background of who you are recruiting is obligatory.

To ensure you hire trustworthy employees, pre-employment background checks are vital in the banking industry where sensitive financial and personal data about their customers, stakeholders, and insurers are handled by the workforce. The secret information includes customers’ financial records, passwords needed for the fund transfer, and corporate protocol. The BFSI industry must be driven by an incorruptible workforce.

Here are some substantial reasons why pre-employment background verification is crucial, especially in the banking sector:

To make sure customer information stays protected

A banking entity has access to cash, accounts, and sensitive documents of all sorts. In a world where cyber threats and data abuses are rampant, they need to make certain that customer information always stays protected. By conducting background validation, they can double-check the potential hires’ work history, how flexible they are with the banking industry regulations; and whether they have done the work, they say they have. The banking institutions need surety; otherwise, their prestige and customers are exposed to tremendous risk of fraud.

To follow the secured practices for money transfer licenses

Regulations are stringent for receiving licensure to become a money transmitter. If a financial institution undergoes the mundane process of approval for money transfer licenses, the new hires must be appropriately vetted. Failure to do so can land the commercial establishment in legitimate worry and also make them lose their money transfer license.

Safeguarding company assets

Your financial facility shields access to cash, accounts, and sensitive documents of all kinds. It’s crucial to ensure that new hires have no criminal background, history of theft, or other problematic behaviors before orienting them. Even things like larceny of company time may come up in professional reference checks, so make sure that your background investigation includes them.

If your staff will be traveling for meetings or to transport assets, a DMV search should also be conducted to verify that there are no suspect traffic violations on their record.

To ensure the impeccable customer experience

Customers depend heavily on banking entities for their financial needs. That is why it is essential to recruit professionals who are knowledgeable, gracious, and problem-solvers by nature. A thorough pre-employment screening helps in understanding if an employee will meet not just the expectations of the company but also of the customers.

Fiduciary liability and risk

Regulations governing fiduciary liability are complex and have been modified regularly in the post-Dodd-Frank era. Your financial institution should be extremely well-known with the existing legislation that applies to your business. The risk associated with failure to adhere to these regulations is tremendous–the impact a fiduciary misstep could have on reputation and finances should concern seriously. Ensuring that all employees endure pre-employment and continued background checks can help to reduce the risk of fiduciary law being violated.

At the same time, whether the data obtained from the verification is positive or negative, as an employer, the bank should be courteous and responsible for handling the candidate’s data. This information can affect many people, including the candidate’s professional life and the organization’s stature.

Employing righteous and veracious professionals is ascendant for the banking sector, where the companies depend on safe and responsible practices to thrive. So basically, the appropriate scanning of various documents submitted by the prospective employees gives the recruiting organizations to have all the required and vital information about the employee to be hired like address proof, educational degrees, medical information, etc. The BFSI sector is awakened to the possibility of applying pre-emptive measures, using the latest employee background verification.

If you have any questions about background verification, or if you want to get yourself voluntarily verified to see what your next employer will see, or if you want to stand out from the crowd when hiring, check us out. And if you are an employer and would like the services of a reputable, transparent, and technology-driven background check company, contact us!
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