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Guide to Employee Background Checks for Financial Institutions

Employee background checks are crucial for financial institutions because they deal with highly sensitive information every day. It’s essential to ensure that employees, contractors, and vendors don’t pose potential risks to the company. Background checks in the financial sector tend to be more intricate compared to other industries because the nature of the work involves handling personal data and money.

Before starting work in a financially regulated company—whether it’s a bank, insurance firm, credit union, or any other financially regulated organization—employees must undergo a background check. This step is vital to maintaining trust and security within the industry.

Employee background checks are vital for employers to ensure they’re not bringing on board individuals with a criminal past or who were fired from previous roles due to misconduct. Thorough background screening safeguards employers by preventing them from teaming up with individuals who could jeopardize their integrity and compliance.

In today’s climate, with the increase in identity theft, fraud, and financial crimes, background checks are more crucial than ever. They’re not just important for roles involving finances but also for positions working with children, the elderly, and sensitive information. That’s why it’s essential to conduct thorough and accurate background checks on all new hires initially and periodically on existing staff members.

Typically, the background check occurs before the finalization of the hiring process and can be carried out either by the employer themselves or through a third-party provider.

Financially regulated background checks usually cover areas such as:

  • Financial Regulatory Compliance
  • Adverse Financial History
  • Credit History
  • Global Sanctions
  • Criminal Records
  • Employment History
  • Education History
  • Personal Identification Information
  • Residential History

What Information Should be Included in a Background Check?

The key details to include in a background check are the person’s name, age, current address, past addresses, current and past employment history, education background, any criminal record, driving history, credit score, medical records (if applicable), and social media profiles.

How to Conduct a Proper Employment Screening Process for Financial Service Companies?

For financial service companies, a comprehensive employment screening process begins with a careful evaluation of the company’s requirements and expectations.

Once the company’s needs are clear, it’s crucial to consider the specific role the candidate will be taking on. Beyond qualifications, financial institutions should also consider the personality traits necessary for the position at hand.

Financially regulated businesses have their own set of specialized checks, including Financial Regulatory Checks, Adverse Financial Checks, and Credit Checks. These checks are essential additions to other crucial screening categories.

3 Helpful Tips on How To Conduct A Successful Background Check For Fintech Companies

Here are some useful tips for carrying out a successful background check for fintech companies:

  • Conduct interviews and reach out to references.
  • Look into criminal records, bankruptcies, financial regulatory matters, adverse financial history, and more.
  • Verify the candidate’s past employment history.

What are the Most Common Types of Background Checks for Financial Institutions?

There are various types of background checks tailored for the financially regulated sector, each offering distinct benefits to ensure business compliance. To choose the most suitable one for your company, it’s crucial to grasp the different options available.

One crucial check for the financially regulated sector is the Financial Regulations check, a must for any new hire. Another standard check is the criminal background screening, which reveals whether the applicant has any arrest or conviction records. This check is particularly common in industries like finance, where tight regulations aim to thwart fraud and embezzlement. Additionally, there’s the credit report, offering insights into an individual’s financial management skills.

What are the Best Background Check Services for Financial Institutions?

Top-notch background check services offer a range of checks, including Financial Regulatory, Adverse Financial, Global Sanctions, and Criminal checks, among other mandatory screenings, which are vital for the hiring process.

Specialized background screening providers can also deliver customized, up-to-date reports tailored to your specific requirements. Some services might include credit reports, personal references, criminal records, and more.

You want a top-notch background screening provider that offers a wide range of quick and accurate checks, delivered with the best software and service, and a trusted reputation.

How to Find the Best Background Check Provider for Financial Institutions?

There are many background check providers out there today, making it tough to choose the right one. However, certain qualities and features are worth considering when making your selection.

The best background check providers for financial institutions will offer a wide range of services tailored to your institution’s needs. Look for providers registered with FSQS, signaling their commitment and credentials in the financial sector.

It’s crucial to find a provider capable of offering customized background checks and reports to safeguard your company effectively. Opt for a provider equipped with the latest technology and tools; some now incorporate AI and blockchain technology into their screening services.

Lastly, choose a background check provider with a team of qualified professionals who can support your institution in various ways, enhancing your hiring and onboarding processes.

Why Choose Veremark for your Background Screening?

Veremark is dedicated to revolutionizing the background screening and reference checking industry, enhancing speed, automation, security, and scalability in your employment verification processes.

Our online background check software streamlines the entire screening process, delivering fast (sometimes instant) results, standardized and traceable procedures, and an improved experience for you, your candidates, and their referees.

We assist employers in defining, understanding, and managing hiring risks, simplifying and instilling confidence in your hiring journey.

Our platform enables you to request comprehensive global background checks, including employment history, criminal records, civil checks, credit checks, global sanctions, and reference checks.

Rest assured, your candidates’ data is secure with us. We prioritize enterprise-level IT security and data protection to meet even the strictest regulations.

Our platform facilitates fully automated background checks for businesses of all sizes, worldwide. By automating the reference checking process alone, we estimate a remarkable 45x ROI on the cost of service for employers.

While the uncertainty caused by the coronavirus persists, relying on specialized and experienced service providers can offer the peace of mind of reliable and accurate results without prolonging your time to hire during these challenging times.

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