Navigating the Double-Edged Sword of BFSI's Digital Transformation

The BFSI sector's digital transformation, powered by innovations like UPI and BNPL, is driving growth but also increasing credential verification challenges. AuthBridge reports a rise in discrepancies, urging the sector to adopt AI solutions to ensure transparent and accurate background checks for sustained success.


Devdiscourse News Desk | Updated: 24-10-2024 13:21 IST | Created: 24-10-2024 13:21 IST
Navigating the Double-Edged Sword of BFSI's Digital Transformation
Representative image. Image Credit: ANI
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  • India

The Banking, Financial Services, and Insurance (BFSI) sector is experiencing a rapid digital shift with innovations such as the Unified Payments Interface (UPI) and Buy Now, Pay Later (BNPL) schemes at the forefront. A recent report by AuthBridge indicates that this evolution is significantly elevating demand for bespoke financial services and highly-skilled professionals. However, such growth is not without its pitfalls, particularly in candidate credential verifications.

Discrepancies in background checks have surged to 10.4% in the fiscal year 2023-24, reflecting an alarming 18.1% year-on-year increase. Employment verification issues are predominant, constituting 14.6% of all inconsistencies, thereby posing substantial risks to financial entities through compromised workforce integrity and operational inefficiencies.

Issues pertaining to education and address verifications were noted at 9.1% and 6.4%, respectively, underscoring the pressing need for robust verification protocols. The report underscores escalating discrepancies in criminal record checks and identity verifications, attributed partly to a rising crime rate reported by the National Crime Records Bureau (NCRB), increasing from 422.2 to 445.9 crimes per million from 2022 to 2024.

Ajay Trehan, CEO, and Founder of AuthBridge highlighted, "The rapid expansion within the BFSI sector serves as a double-edged sword; it unlocks opportunities but also exposes vulnerabilities." He asserted the strategic imperative for financial organizations to leverage advanced technology for comprehensive verification, safeguarding against credential fraud while fostering trust and integrity.

Experts advocate for the adoption of AI-driven solutions to tackle these challenges effectively, ensuring precision in verifying employment, education, and identity credentials. As the industry continues to expand, sustainable growth will hinge on establishing credibility through transparent hiring methodologies. (ANI)

(With inputs from agencies.)

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