It is essential to know a potential client or customer's identity and background before providing seamless services. Before extending credit, a financial institution can run and consider many reports when performing Background Verification.

1. Importance of
Background Verification
in the Financial Industry
Riddhi Corporate Services Limited

2. Background Verification Services
Businesses need to verify backgrounds for recruitment, loan approval,
and service provision, among other things.
Due to increased security requirements and complex financial
regulations, financial institutions must carefully select who can be
eligible to use their services.
It is essential to know a potential client or customer's identity and
background before providing seamless services. Before extending
credit, a financial institution can run and consider many reports when
performing Background Verification

3. The Following are the most widely used
Background Verification:
Identity Verification Education Verification Address Verification

5. India is one of the countries where identity theft is a major
source of fraud. It was found that 85 percent of identity frauds
are related to auto loans, credit cards, and mortgages,
according to a survey conducted by Experian.
The mortgage loan portfolio has seen an increase of 50% in
identity fraud. It is essential that business alliances, joint
ventures, and collaborations are based on confidence and
reliability, which can only be achieved by conducting thorough
background checks.
A tech-enabled platform can be used to verify extensive
background information, including identity information.
Identity Verification:

6. The following Background verification is incorporated
with Identity Verification:
1. Passport verification
2. Driving License check
3. Voter ID check and more

7. The misrepresentation of educational qualifications is
one of the most common types of fraud in India.
It is common for fraudulent documents to be created in
order to gain access to loans, employment
opportunities, and admission to educational institutions,
among other things.
One of the most effective ways to combat false
documents is to conduct a comprehensive background
check that involves an education check.
Education Check:

8. 1. Roll or Registration number of the candidate
2. Courses passed or pursued by the candidate
3. The year of course completion
4. The genuineness of passing certification
5. The association and accreditation check of the
institute/course
Following are some of the aspects of education that are
verified using multiple databases:

9. According to Survey, there is a more gap in the
candidates’ given addresses.
An essential part of Background Verification is
physical address verification since it is usually the
first place employers, businesses, credit card
companies, and banks look for discrepancies.
Mobile-enabled location tagging, which uses
cutting-edge technology, allows financial
institutions to monitor
Address Verification:

10. The following information about the physical address:
1. Is the address given correct?
2. If the address on a resume or document refers to
a real physical address
3. What's the duration of the nominee's or
individual's residence at the specified address?
4. A person's ownership status or lease status.
5. Relationship between the nominee and the
person who verifies the address information.

11. Thanks…
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background-verification-in-the-financial-industry