Fresh data from background screening platform Zinc highlights a significant challenge for the UK’s Financial Services sector, with nearly one in four candidates failing background checks in the past 12 months. The findings point to increasing regulatory demands, heightened employer caution, and more comprehensive verification processes as key factors behind the surge in failed checks.
Zinc’s analysis shows that, on average, 23% of candidates applying for roles in Financial Services failed background checks during the period, compared with a 16% average across other sectors. Only highly regulated industries, such as Biotechnology, Pharma & Medical (25%) and Health, Medical & Care (25%), reported similarly high levels of failure.
This rising failure rate adds further pressure to an already strained Financial Services market, which is grappling with economic volatility, job losses caused by AI-driven automation, and a widening digital skills shortage. As the sector undergoes rapid transformation, finding qualified and trustworthy candidates has become increasingly complex — making effective background checks more critical than ever.
David Cole, Head of Regulatory Affairs and Policy at Zinc comments: “Financial Services companies are becoming increasingly risk-averse. We’re seeing employers add more checks, including adverse media and social media screening, because criminal record checks have been devalued over the last 10 years. What’s more, with the UK looking to tighten hiring regulations around foreign workers, firms are going to be faced with a significant challenge when acquiring the necessary staff. More checks, across more geographies, is going to lead to increasing failure rates and lower levels of new hires.”
The Financial Services industry also conducts a higher volume of background checks than any other sector, with Zinc customers having completed 219,337 checks since 2023. Almost 30,000 candidates in Financial Services were checked in the last 12 months alone. The average turnaround time per candidate is 7 days, meaning approximately 199,346 days were spent checking financial services candidate backgrounds in the past year.
Cole continues: “With a significant portion of the UK population having secondary income streams, conflicts of interest are a growing concern. Firms are also having to navigate checks and annual recertification processes around things like directorships, credit history, PEPs and sanctions. It’s not just about pre-employment screening anymore, it’s about regular and continuous security measures for staff.”
Addressing these challenges, Zinc’s Financial Services customers are projected to save over 3,300 hours in background checks for candidates and employees in 2025 thanks to automated screening software. Two-thirds of their FS customers selected Zinc for its compliance, helping them stay ahead of evolving regulations. And in doing so, Zinc’s Financial Services customers are projected to save over 3,300 hours in background checks for candidates and employees in 2025 thanks to comprehensive automated screening software.”
