How OnGrid developed a system for digital verification and onboarding processes tailored for a prominent BFSI player in India.

Part I – Introduction

One of the common challenges that Banking, Financial Services, and Insurance (BFSI) organizations face is potential fraud by employees, customers, vendors, etc. The challenge increased multifold because of the regulatory nature of their business, where the provisions defined by the regulators such as RBI, SEBI, and IRDA are highly stringent. 

The solution lies in adopting digital verification and background check solutions to balance the conflicting parameters – accuracy versus efficacy, or accuracy versus turnaround time. 

Verifications and background checks may include accurately verifying identity, address, employment history, education qualification, and checking for criminal records and credit history to mitigate potential risks such as fraud or misrepresentation, which may further lead to financial losses and legal liability. Some of these may be relevant for compliance reasons, and some are just for enhancing trust and safety.

Part II – Factors considered while adopting an onboarding and verification process

1. Time-consuming process: Conducting a thorough verification or background check can be a time-consuming process. This can cause a delay in employee joining, or customer onboarding, which may, in turn, impact business operations and productivity.
2. Poor candidate experience: Candidates end up sharing information and documents multiple times, and wait for extended periods of time to get the KYC, verification or background check completed.
3. Employee verification: Email-based employee verification (emails sent to previous employers’ HR teams) is not a standardized process, is highly unstructured, and can end up taking a lot of time. 
4. User base Opportunity: The organization had millions of users, and they wanted to use the verification or KYC capabilities to understand the risk profiles or users better, and effectively enhance the footprint of their loan disbursement business. 

Part III – Solution through OnGrid and eLockr

After a careful review of their business goals and pain points, we advised taking a multi-pronged approach and implemented the following interventions

Employees and Contractors

• OnGrid platform for background verification for employees and contractors was deployed in phase I, where the process could start with just the email ID of the new joiners, who registered on the OnGird platform.
• OnGrid platforms’ parent-child community structure ensured easy trackability for relevant HR managers sitting from different regions, who could also configure the choice of checks they wanted for different employee profiles. They could see the real-time status of those verifications on the dashboard, and expedite the hiring process
• In the second phase, the organizations’ HRMS was integrated with OnGrid’s onboarding verification request and result APIs, allowing candidates to avoid the hassle of sharing documents two times across different platforms (HRMS and OnGrid portal).
• eLockr was adopted to issue digital credentials to ex-employees that would be verified in an automated manner. 

Vendors

• OnGrid’s entity due-diligence offering was used to standardize onboarding and verification of all vendors and suppliers

Customers

• Gridlines APIs were used for customer onboarding, KYC and notification of customized loan offers based on the candidate’s employment history

Part IV – Impact Created

1. Pre-onboarding screening TAT was reduced from 8 working days to 1 working day covering ID verification, Criminal record check, previous employment history check, global database check, credit history check, and eLockr reference check.
2. Onboarding delay due to BGV was reduced from 43% of cases to less than 4%.
3. Median overall background verification TAT reduced from ~28 working days to 8 working days
4. Ex-employee verification through eLockr reduced ~3 hours of HR team time per ex-employee
5. The organization was able to get useful attrition insights of the core reasons of people leaving their organization and also identified that 38% of their ex-employees joined their top-3 competitors
6. Their loan book expanded significantly by over 400% after they were able to able to send customized loan offers to the users based on their employment history, identified via Gridlines APIs

About Us

OnGrid is India’s leading background verification platform which offers 50+ checks and verifications including drug tests at the fastest turnaround time! We work with over 3000 organizations and have conducted over 100 million checks and verifications. To know more about the process and commercials, schedule a demo now or simply give us a call at 080 470 94800.