Australian Banking Industry to Enforce Stricter Background Checks

Posted on Jun 23 2017 - 11:45am by Admin

Criminal background check paperworkThe Australian Bankers Association (ABA) plans to implement a new background checking protocol for potential employees on July 1, as the industry aims to rebuild its image.

Its Banking Industry Conduct Background Check Protocol will prevent undesirable employees from transferring to one company from another. While the protocol is relatively new, other ways to vet candidates include a criminal record check. Online application, as opposed to filling out forms in the past, has made this process easier today.

Screening Employees

Australian Prime Minister Malcolm Turnbull said in April 2016 that banks should stop focusing on a profit-driven strategy, which seeks to generate more sales instead of helping their customers. The ABA’s new protocol will complement regulatory investigations that discovered the sales-driven culture, aside from the presence of many unethical financial advisers.

In early 2017, a total of 26 non-compliant advisers of four major banks allegedly committed wrongful acts while doing their jobs, according to the Australian Securities and Investments Commission. ABA CEO Anna Bligh believes that the Banking Industry Conduct Background Check Protocol will aim to curb the increase in numbers of this kind of bank employees in the future.

Jobless Rate

Employers from other industries should also conduct background checks for job seekers, as the unemployment rate in Australia fell to 5.5% in May. The creation of additional 42,200 jobs led to the smaller number of jobless people.

The figure marked the eighth consecutive monthly increase of full-time workers. Since September 2016, the country has provided 124,000 jobs. On the other hand, the number of part-time workers in May fell by 10,000 jobs.

Stricter background checks are not just necessary for Australian banks, but also for every other industry or business. This precaution will help employers screen unsuitable candidates that could ruin a company’s image or reputation.