While the BFSI sector is undergoing rapid digital transformation, fueled by innovations like UPI and BNPL schemes with increasing demand for financial services and talent, there has been a rising challenge of verifying candidate credentials accurately. According to a report by AuthBridge, a background verification and authentication solutions provider, the BFSI sector recorded 10.4 per cent discrepancies in background checks for FY 2023-24, marking an 18.1 per cent increase from the previous financial year. The increase brings to the fore the growing challenge of verifying candidate credentials in a highly competitive market, where individuals may resort to falsifying academic, professional, or personal information to secure positions.
Per the report, the employment verification discrepancies are the most prevalent, accounting for 14.6 per cent of inconsistencies. The rise in numbers presents a significant risk to organizations as inaccurate employment histories can hinder effective workforce management. Following this is the education verification discrepancies at 9.1 per cent, pointing to the importance of validating academic qualifications. Additionally, 6.4 per cent of address verifications showed inaccuracies, further emphasizing the need for reliable verification protocols to mitigate risks associated with identity misrepresentation.
Further, beyond these are discrepancies in criminal record checks (CRC) and identity verification which are also steadily rising. The AuthBridge report said that the increase in CRC discrepancies can be attributed to the overall crime rate in India, which has climbed from 422.2 crimes per million in 2022 to 445.9 per million in 2024, according to the latest report from the National Crime Records Bureau (NCRB). Additionally, AuthBridge’s Annual Trends Report 2024 (ATR’24) highlighted that 73.4 per cent of the overall reported discrepancies are in identity verification checks.
Ajay Trehan, CEO & Founder, AuthBridge, said, “The rapid expansion of the BFSI sector is a double-edged sword. While it brings growth opportunities, it also introduces vulnerabilities. As a trusted expert in the BFSI space, AuthBridge has observed that employment-related discrepancies are emerging as a significant concern. Financial institutions must prioritize the use of cutting-edge tech for end-to-end verification to not only safeguard against credential fraud but to build a foundation of trust and integrity that ensures long-term success.”
To stay ahead of evolving risks, financial institutions need to implement AI-driven verification solutions that ensure accurate background checks across employment, education, address, and identity credentials. As the BFSI sector continues to expand, building trust through transparent hiring and onboarding processes will become a critical differentiator, it said.