Background screening for Fintech: Everything you need to know

Share this article
Example H2
Example H3
Example H4


Background screening for Fintech is crucial to help busy employers make great hiring decisions. With Fintech leading the way as one of the most disruptive sectors in the business world, employers are having to move quickly to keep up with regulatory and industry changes while still maximising recruiting opportunities. Compliance background checks are increasingly important, with regulations such as MiFID 2, Sarbanes Oxley and PSD2, and the need for Equivalence across international financial markets.

bank employees background check
Bank employees background check

Background screening is one area where Fintech employers have a real opportunity… Automation is a no-brainer. It offers additional transparency, a better candidate experience, more effective and efficient employment screening processes - all at the click of a mouse.  

This becomes even more important when you consider that failing to carry out due diligence can result in severe consequences. Background screening helps Fintech employers define, understand and manage hiring risks and remain compliant.

In this post, we’ll provide useful info about background screening in the Fintech sector; including which checks might be relevant to roles in Fintech and what challenges Fintech employers face.

Download your comprehensive guide to hiring and background screening for your FinTech here.

What Makes Fintech Different?

Even though we now commonly associate it with concepts such as blockchain and virtual banking, financial technology has its roots as far back as the 1950s when the credit card was invented. And while the term “Fintech” wasn’t in mainstream use until internet banking really took off at the turn of the century, it has now become a burgeoning sector which is estimated to be worth $305 billion by 2025.

financial services pre employment screening
Financial services pre employment screening

Background screening is well established in all industries. Not only to give employers a better understanding of their candidates but also for compliance. What makes background screening for Fintech different is the emphasis on compliance in a world where innovation is the norm and new technologies are trialed every day. The rate of change and demands on the industry is much higher, but Fintech is subject to the same (and often more rigorous) regulation and compliance requirements.

With decision makers scrambling to keep up with the times and legislate for the myriad new ways that financial transactions can be faster, safer or more convenient, employers in Fintech are under their own pressures. Recruitment practice must meet compliance laws for role operations and setting, in order to satisfy due diligence and AML regulations.

And, with many Fintech firms still in their infancy, they are also often operating under smaller budgets, with recruitment and AML allocations being particularly squeezed in order to provide more funding for innovation.

bank employment background check
Bank employment background check

Why Should Employers Carry Out Background Screening in Fintech?

There are three main reasons why background screening is crucial for Fintech employers:

  1. To ensure AML and compliance regulations are followed
  2. To provide the best service to clients and customers
  3. To protect company reputation

AML and Compliance For Fintech

Compliance will vary according to where in the world the employee or role is, but in general, regulations are designed to protect financial institutions and their customers from being targets for fraud or money laundering.

This means that, at minimum, most candidates will need to have their identity verified, as well as checking their criminal history.

There will likely also be requirements for data protection. Data protection is more commonly thought of in protecting consumer data, but in fact all personal data is protected. Data privacy laws are usually also applicable to candidate data, with restrictions on the safe collection, management and storage of personal information.

How Fintech Background Screening Improves Customer Service

With frequent reports and surveys suggesting that up to 40% of all applicants lie on their resume or job application, it is obvious that employers need to be really certain that details they have been provided with are accurate.

If a candidate says that they have experience in a particular area, and are then let loose on customers and fail to deliver, this could have a severe impact on customer experience and future business. Employers must make sure that the people they employ are up to the task.

Fintech employers should also look to appoint the very best candidates who can provide the highest levels of service to their customers or who can bring useful experience to the role. Consumer expectations are at their highest, and the review based world we live in means that company practices are often shared online for all to see. The very best marketing is in providing the very best service.

The Role of Background Screening in Company Reputation

When we make employment decisions we are entrusting the future of our company with our staff. A workforce has the power to make or break an organisation, from either positive or negative interactions with members of the public, to their ability to carry out illegal activity under the company name.

Particularly in the financial sector, any scandal will cost dearly. The true costs of an investigation into company practices add up to more than the financial burden of interruptions in operations. Reputational damage can be long lasting and severe.

Ensuring that all roles are subject to comprehensive background screening can help provide employers with peace of mind that candidates are who they say they are, have the ability and experience to carry out the role in question, and are honest and trustworthy.

The Best Background Screening for Fintech

Not all screening companies, checks or packages are equal. Fintech employers should look for the very best screening provision for their role. The main considerations are:

We have already discussed the importance of compliance in Fintech background screening but it can’t be said too much: compliance should be at the very start of the checking process. This means not only ensuring that the right checks are carried out for the role and territory, but also that the way in which they are carried out satisfies compliance and AML requirements.

After compliance, background screening must also enhance the recruitment and employment process. With a keen eye on the needs and scope of the role and operations, specific checks can help ensure that candidates are not only adequately experienced for the role but also safe to carry out their duties. For example, a Global Sanctions Check can protect against individuals involved in money laundering and terrorist financing, as well as identify anyone who might be prohibited from working in a certain role.

Applicant tracking and integration with current HR packages is crucial, to ensure that checks are kept up to date and repeated where necessary.

Perhaps most importantly, background checking must be convenient and simple for candidates, to prevent losing top talent due to a poor candidate experience. Ensuring candidates remain engaged throughout the process is key, by providing a straightforward and accessible platform for uploading necessary documents and verifying experience, references, and qualifications.

Candidates in the Fintech sector anticipate that any screening will be as up to the minute as the technology they are working with and developing. Applicants will expect online and automated checks rather than their slow, outdated ancestors. Failing to provide fast, efficient and innovative checks might send top candidates running to competitors.

employee screening bank
Employee screening bank

Background Checks for Fintech

Employers should ensure that they are carrying out the right checks according to the requirements for their role or location. But in general, the main checks which are relevant for Fintech are:

employment background check bank
Employment background check bank

Key Takeaways

With Fintech such a fast moving sector, while also being heavily regulated, employers are under greater pressure to get background screening right.

And along with rapid developments in the sector, there are also frequent changes to compliance and AML requirements which must be met.

Fintech candidates demand convenient and innovative background checks that reflect the fast moving industry they are working in. Technology and automation plays a huge role in providing the best candidate experience.

It is crucial that employers carry out the right checks in order to protect their business and customers from bad recruitment decisions which could lead to criminal activity or bad customer experience.

Are your background screening processes providing your company and customers with the right level of protection?

What now?

Veremark are world leading background screening specialists, providing innovative and exclusive solutions to safer recruitment. All our checks are online, delivering fast, sometimes instant, results.

Talk to us today about starting your checks for free.

Veremark - Trusted and Secure - your people screening for hiring in regulated industries

Share this article

Popular Packages


No items found.


What background check do I need?

This depends on the industry and type of role you are recruiting for. To determine whether you need reference checks, identity checks, bankruptcy checks, civil background checks, credit checks for employment or any of the other background checks we offer, chat to our team of dedicated account managers.

Why should employers check the background of potential employees?

Many industries have compliance-related employment check requirements. And even if your industry doesn’t, remember that your staff have access to assets and data that must be protected. When you employ a new staff member you need to be certain that they have the best interests of your business at heart. Carrying out comprehensive background checking helps mitigate risk and ensures a safer hiring decision.

How long do background checks take?

Again, this depends on the type of checks you need. Simple identity checks can be carried out in as little as a few hours but a worldwide criminal background check for instance might take several weeks. A simple pre-employment check package takes around a week. Our account managers are specialists and can provide detailed information into which checks you need and how long they will take.

Can you do a background check online?

All Veremark checks are carried out online and digitally. This eliminates the need to collect, store and manage paper documents and information making the process faster, more efficient and ensures complete safety of candidate data and documents.

What are the benefits of a background check?

In a competitive marketplace, making the right hiring decisions is key to the success of your company. Employment background checks enables you to understand more about your candidates before making crucial decisions which can have either beneficial or catastrophic effects on your business.

What does a background check show?

Background checks not only provide useful insights into a candidate’s work history, skills and education, but they can also offer richer detail into someone’s personality and character traits. This gives you a huge advantage when considering who to hire. Background checking also ensures that candidates are legally allowed to carry out certain roles, failed criminal and credit checks could prevent them from working with vulnerable people or in a financial function.

Transform your hiring process

Request a discovery session with one of our background screening experts today.

Financial Hiring Trends Report

Fintech is one of the fastest-growing business verticals out there. Owing to accelerated global adoption, its value is expected to cross USD 324 billion by 2026 at a rate of growth of 23.41% per annum for the next five years. The growth has also propelled the need to hire more people and retain them. The world has long thought of financial services as a male-dominated sector, but the emergence of FinTech has showcased women playing key roles.In this report, we discuss:

  • What is propelling Fintech growth?
  • What have been the top priorities for HR leaders in the Fintech landscape?
  • What are the key challenges in FinTech recruitment
  • The big six issues driving HR technology decisions
  • What is the way forward for the FinTech sector?
  • How is Veremark streamlining the hiring process in the FinTech & Financial Services sector?
Get your own copy!