Fraud can go undetected for months, even within organisations with established controls. The Association of Certified Fraud Examiners (ACFE), in its Occupational Fraud 2026: A Report to the Nations, analysed 2,402 occupational fraud cases across 143 countries and territories. The median fraud case lasted 12 months before detection. Total losses across the cases exceeded $3.4 billion.
For banks and fintechs, where employees may handle customer funds, sensitive financial information, and critical technology systems, an unverified hire can introduce risks that extend beyond the recruitment process.
A candidate may have the right qualifications and impressive experience on their CV. Employers still need to verify those claims before granting access to sensitive resources.
So, what should banks and fintechs verify before hiring? And how should screening differ between a customer service representative, a finance manager and a software engineer with access to production systems?
Why Background Checks Matter in Banking and Fintech
Banks and fintech companies depend on trust. Customers expect their money and personal information to be handled responsibly, while regulators expect financial institutions to maintain appropriate controls.
Background checks help employers verify candidate information and identify discrepancies before making hiring decisions. They also support wider risk management efforts.
Three areas deserve particular attention.
Financial risk: Employees with access to funds, payment operations, procurement, or financial approvals may be in a position to facilitate fraud, unauthorised transactions, or misuse of company resources.
Data and cybersecurity risk: Technology personnel may have access to customer databases, applications and systems that support financial transactions. Unverified credentials or experience can create additional risks when assigning privileged access.
Regulatory and reputational risk: Misrepresented qualifications, unverified professional credentials or unsuitable appointments can expose an organisation to operational difficulties, regulatory scrutiny and reputational damage.
In Nigeria, the Central Bank of Nigeria's 2024 Risk-Based Cybersecurity Framework and Guidelines for Deposit Money Banks and Payment Service Banks set out cybersecurity requirements for institutions within its scope. The framework includes provisions relating to privileged access management and background checks for specified employees responsible for protecting sensitive information.
Background screening should therefore form part of a broader approach to managing people, access and organisational risk.
What Background Checks Should Banks and Fintechs Conduct?
The checks required depend on the position, its responsibilities and the level of access involved. These are the core areas employers should consider.
1. Identity Verification
Identity verification establishes whether a candidate is who they claim to be.
Employers should verify appropriate identity documents and confirm relevant personal details. Address verification may also be necessary, depending on the position and the organisation's screening requirements.
This is particularly important for roles involving financial transactions, sensitive customer information, privileged system access or responsibility for company assets.
An identity discrepancy should be investigated before a hiring decision is finalised or access is granted.
2. Education and Professional Qualification Verification
A candidate's qualifications may influence whether they are considered suitable for a specialist role. Employers should verify relevant degrees, certificates, professional memberships and licences with appropriate issuing institutions or professional bodies.
For example, a compliance officer may need relevant professional credentials, while a technology specialist may need qualifications or certifications aligned with their responsibilities.
Verification helps employers establish whether the credentials presented are genuine and relevant to the position.
3. Employment History Verification
Previous experience is often a major consideration when hiring for banking and fintech positions. However, the information on a CV should not be treated as independently verified evidence.
Employment history checks can confirm previous employers, job titles, employment dates and relevant responsibilities.
This matters when hiring candidates for senior finance, risk management, payment operations or technology positions, where the role may depend on experience that cannot be assessed through interviews alone.
Where discrepancies arise, employers should seek clarification and assess the findings in context.
4. Reference and Character Checks
Professional references provide another way to corroborate a candidate's employment history, conduct and working relationships.
Employers can contact appropriate referees to confirm relevant details about a candidate's previous responsibilities and professional experience.
References are particularly useful for roles involving financial authority, confidential information, sensitive decisions or responsibility for other employees.
They should complement other verification checks rather than replace them.
5. Criminal or Police Checks
Where legally obtainable and appropriate to the position, criminal or police checks may form part of the screening process.
Their relevance depends on the role, applicable laws and the organisation's legitimate screening requirements. Employers should assess any findings fairly and in context rather than treating every record as an automatic reason to reject a candidate.
The purpose is to make a better-informed hiring decision while respecting applicable legal requirements and individual rights.
6. Financial and Role-Specific Checks
Some positions require additional checks because of the access or authority they carry.
For roles involving significant financial responsibility, employers may consider financial or credit-related checks where lawful, necessary and proportionate.
For technology positions, additional verification may cover relevant technical credentials, previous experience and responsibilities involving privileged system access.
Depending on the role, employers may also need to verify professional licences, regulatory standing or disciplinary records.
The objective is to identify the information that matters for the position rather than subjecting every candidate to the same screening package.
Which Banking and Fintech Roles Need More Extensive Screening?
A risk-based approach helps employers determine which checks are appropriate for each position.
Role | Key screening considerations |
Branch managers and cash officers | Identity, employment history, references and appropriate integrity checks |
Finance managers and treasury staff | Identity, qualifications, employment history, references and relevant financial checks |
Compliance officers and internal auditors | Education, professional credentials, employment history and relevant regulatory or disciplinary checks |
Payment operations staff | Identity, employment history, references and checks relevant to financial authority |
Software engineers with production access | Identity, qualifications, employment history, references and additional checks appropriate to system access |
Database administrators and cybersecurity personnel | Relevant technical credentials, employment history, references and privileged-access risk |
Customer service representatives | Identity, education where relevant, employment history, references and appropriate criminal or police checks |
These are screening considerations, not a universal checklist for every institution or candidate. The appropriate checks depend on the responsibilities of the role, applicable regulatory requirements and the organisation's risk assessment.
A software engineer with access to production systems, for instance, may require additional verification beyond what is appropriate for an employee whose duties involve general administrative support.
Likewise, an employee who handles payments may require a different screening approach from one who has no financial authority.
The principle is straightforward: screening depth should reflect the level of risk associated with the role.
How to Build a Reliable Background Screening Process
Knowing which checks to consider is only part of the process. Employers also need a consistent way to carry them out.
1. Assess the role before selecting checks.
Identify what the employee will have access to. Consider money, customer information, critical systems, confidential records and decision-making authority.
2. Match checks to the risk.
Determine which information needs verification based on the role's responsibilities, the organisation's policies and applicable requirements.
3. Verify information through reliable sources.
Where possible, confirm qualifications, employment history and professional credentials with the relevant institutions, previous employers or professional bodies.
4. Investigate discrepancies before making decisions.
A discrepancy does not automatically establish dishonesty. Give candidates an appropriate opportunity to clarify material inconsistencies and assess the information fairly.
5. Handle personal information responsibly.
Background screening involves personal data. Organisations should establish a clear purpose for each check, collect only necessary information, restrict access to authorised personnel and apply appropriate data retention practices in line with Nigeria's data protection framework.
These steps help create a screening process that is structured, proportionate and aligned with the organisation's hiring and risk management needs.
Make Background Screening Part of Your Hiring Process
Banks and fintechs cannot eliminate every risk through background checks. However, verifying candidate information helps employers make more informed decisions before granting access to funds, customer data and critical systems.
The starting point is understanding the position. Identify the responsibilities, determine what needs to be verified and select checks that reflect the associated risks.
For organisations hiring across multiple departments or industries, a structured screening guide can help HR teams apply this approach more consistently.
Need Help Determining What to Verify?
The Employer's Background Check Guide by Industry from 360 Verify outlines recommended checks for high-risk and lower-risk roles across 11 industries in Nigeria. It also covers six core background checks, a practical risk model and questions employers should ask before screening candidates.
Download the guide to identify the screening considerations relevant to your industry and make more informed hiring decisions.