Why does finance industry conduct strict background checks?


Money related jobs like banking and finance conducts a thorough background check on all of their employees and applicants, this is the most important part of their recruitment process to stay and work within the company. This is one way of securing their business and maintaining the safety and trust they have with their employees.

In this article you will find out some important information why most companies require strict background checks.


Why are Financial businesses/companies strict in employment screening?

Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit card companies, insurance, accountancy, consumer-finance companies, stock brokerages, investment funds, individual managers and some government sponsored enterprises.

With these services provided by financial companies, they are entrusted with customers sensitive information and has access to their customers funds. And because of this, the company owner and the management are responsible in maintaining the trust given by their customers by making the company secure and stable. One of the most important role/responsibility they have is to hire qualified, trustworthy and responsible people. This industry needs a high level of security and privacy in processes and programs within the company at all times and the company security starts from their employees.

With this strict employment screening, you will be able to filter the people you will trust within your company. Background checks are mostly required in the pre-employment process but it can also happen during the employment period or within the duration of the contract with a company to maintain the security of the company to prevent fraud.

In fact, the most common perpetrators of fraud are business insiders. Incidents of Fraud happens everywhere and the most common mistake is that they lack strict background checks. That is why in this industry double-checking of employees’ credentials is also done to ensure that their services are provided honestly and fairly by trained and competent staff.


Types of checks included.

Background checks help employers ensure that their staffs are well-qualified without legal or financial problems. The checks may include:

  • Australian Financial Services (AFS) licence register.
  • National Police Check.
  • Bankruptcy Register.
  • ASIC’s register of banned and disqualified persons.
  • Recruiters will also verify your qualifications, industry association memberships, work history and references.


Due to the high level of security, safety, risks and competitions in the financial world, thorough background checking is a must with no exemptions. Financial companies value trust, honesty and integrity because that is what makes the business strong and competitive, and that is what their customers provide and expect as well.