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FINDING A JOB in banking and finance is not easy as demanding job specifications and stiff competition mean only the best candidates succeed.

However, success is not just about skills and experience. These days, you might also be assessed on your honesty and financial reliability through detailed credit checks.

After all,  few companies would want to hire people for a job that involves managing the finances of others if the applicants have a poor record of managing their own finances.

Checking a candidate's financial history and the facts on the candidate's resume is particularly common in US banking and finance organisations,  where the high incidence of employee fraud presents serious risks for employers.

In Asia, the risk is lower. However, recent fraud cases in Hong Kong involving financial planners and insurance agents have emphasised the importance of employment pre-screening.

Developments in the regulation of the finance industry will also increase the degree of due diligence required by organisations to minimise their operational risk.

'Around 50 per cent of multinational and US organisations do some level of background checking of applicants,' said Allan Matheson, managing director of Quam Data Services, which offers pre-employment screening services through its subsidiary TrustPlus.

'This is definitely a growing trend. In five to 10 years, it would be reasonable to expect that Hong Kong will be much like America. In other words, you won't be able to start a job unless you have had a background check.'

When evaluating the financial history of senior applicants, organisations might check the type of credit lines an individual has opened, such as credit cards, loans and mortgages, as well as the repayment history, including any late payments.

For  junior applicants, organisations tend to check civil litigation records, or search if someone has filed for bankruptcy. 'These checks provide a level of comfort for a company, but are not quite as intrusive as detailed credit checking,'  he said.

Few of us will probably feel comfortable with having our personal information analysed in such depth, but Mr Matheson said applicants should not be unduly concerned.

'Candidates should feel good if a potential employer is conducting background checks. It means the organisation is taking their people, and the management of risk, seriously,' he said.

Problems with credit are rare. Difficulties are more likely to arise from inaccuracies in a resume. 'The most common problems we identify are when people don't have the degree they claim to have or when people alter the dates of employment to cover up a period of unemployment,'  Mr Matheson said.

The most sensible advice is therefore to be as honest and as accurate as possible when applying for jobs in the banking and finance industry.

'Candidates fudge their data, or try to conceal their past, because they are worried about creating a negative impression. But if they were up front about these minor issues from the start, most employers will still consider the application favourably,' Mr Matheson said.

However, even if you have been completely honest in your application, errors in your financial and credit records could still undermine your chances. It is therefore worth taking precautions and being aware of your rights.

Under the Personal Data (Privacy) Ordinance, organisations must ask for people's written permission to collect and retain personal data and access their credit report.

You also have the right to view the personal data that an organisation is holding on you. Therefore, if a company rejects your application, you can ask to see the background check report.

In addition, you can request a copy of your credit report through a data research company such as Quam Data Services (www.trustplus.com.hk) or  through Hong Kong's credit agency TransUnion Information (http://www.transunion-hk.com).

The report will outline information held in the consumer credit database, including the lines of credit you have opened, your payment history and an overall credit rating.

The report also includes details of any relevant public records, such as writs and petitions against you and inquiries from third parties.

If you find inaccurate information on your credit report, you may write to TransUnion to file a correction request. You will need to provide supporting evidence of your claim and the process can take up to 40 days.

However,  if you really do have a bad credit record or a history that includes bankruptcy or civil litigation, career advisers suggest the best solution is to be honest from the outset. In most cases own up, but demonstrate what you have learned from the experience.

It is also worth remembering that a bad record is not permanent. Delinquent records will be kept for five years and bankruptcy petition records for eight years. If you have to wait it out, use the time to build a clean credit history and develop job-related skills and experience.



Bad credit