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.
The Following are the most widely used Background Verification:
Identity Verification
Education Check
Address Verification
Identity Verification:
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.
The following Background verification is incorporated with Identity Verification:
Passport verification
Driving License check
Voter ID check and more
Education Check:
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.
Following are some of the aspects of education that are verified using multiple databases:
Roll or Registration number of the candidate
Courses passed or pursued by the candidate
The year of course completion
The genuineness of passing certification
The association and accreditation check of the institute/course
Address Verification:
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 the following information about the physical address:
Is the address given correct?
If the address on a resume or document refers to a real physical address
What's the duration of the nominee's or individual's residence at the specified address?
A person's ownership status or lease status.
Relationship between the nominee and the person who verifies the address information.