While background checks are crucial within a number of industries, due to the sensitive nature of the material handled by those within the financial sector, background checks should be the backbone of any hiring decision.
Those within the financial industry are surrounded by customer’s financial records, personal information, corporate financial information, credit card numbers…the list goes on. Companies hiring within the financial sector are typically regulated and so have to perform a minimum level of pre-employment screening which can include a criminal check, identity verification, credit checks, drug testing and background screening. However, when it comes to protecting the assets of both the business and it’s customers, full employment background screening protects all parties.
Why is background screening so crucial within the financial services industry?
We’ve highlighted the costs associated with making the wrong hire, and this could not ring more true for financial organisations. Making the wrong hires poses huge risks to businesses within the financial sector, aside from the complete dissolution of the company’s reputation With so much at stake, the added security provided by verifying an applicant’s employment history and qualifications is invaluable.
Here are the top three reasons why background screening and primary source verification are key within the financial services sector.
1. Safeguarding Customer Information
We’ve mentioned the kind of data that financial services professionals handle every single day. In a world where data security is key, performing a background check to ensure that your new hire has all of the necessary skills, qualifications and knowledge to carry out the job they have been hired for is vital. An employment background check can also verify that there are no previous ethical issues or failings lurking in the potential employee’s professional background.
2. Protecting Company Reputation and Assets
Once the damage is done to a company’s reputation, specifically when it’s the result of a lack of due diligence when it comes to those handling financial information, it can be incredibly difficult for that business to recover and regain the trust of their clients.
Conduct all pre-screening and verification is done before the contract is signed and onboarding starts in order to prevent access to secure information during the recruitment process.
3. Regulatory Responsibilities
Depending on where you are in the world, the regulations you must abide by as an employer within financial services will vary. These regulations are strict for good reason, in order to keep your company compliant with the background checks required by your licence, ensure that anyone in charge of hiring is aware of protocol.
In addition, your company should be abreast of any changes or updates to legislation to make sure that all new and current employees have undergone the pre-employment screening and background checks outlined by regulators. Non-compliance can result in hefty fines and even legal consequences.
To find out more about how you can protect your company and clients during the hiring process, visit our Business Partners area to sign up.