5 strategies to simplify complex data systems in financial crime risk operations
As a financial crime risk operations leader, you’re under constant pressure to manage compliance, drive efficiency, and stay ahead of emerging risks. Disconnected systems and complex workflows make it harder to get the insights you need, slowing your team down and increasing frustration. Balancing the need for efficient processes while navigating the complexities of decades-old legacy systems can feel like an uphill battle.
Managing siloed data isn’t just inefficient—it’s risky too. But there’s a way forward. The good news is, companies that leverage augmented analytics and automated systems can drive their decision making time by 35%, and streamline their operations. In this article, we'll dive into 5 key strategies to consider when overhauling your legacy financial crime risk and payments operations.
1. Break down data silos for holistic risk management
When crucial data is scattered across disconnected systems, teams waste valuable time chasing information through multiple departments and software. These data silos slow decision-making, create inefficiencies, and expose your organization to blind spots in risk and payments operations.
How to fix it
Even with advanced tools like AI and machine learning models, 55% of business leaders report that updating these models still takes too long, largely due to isolated systems. Integrating data from all your systems into a unified platform can significantly reduce the time spent verifying data authenticity, empowering you to act with confidence.
According to Forrester, companies leveraging augmented analytics – tools that streamline complex data into simplified workflows – can boost decision-making speed by 35% and improve data accuracy by 20%. With a unified view of data, your teams can collaborate more effectively, respond to risks with agility, and, most importantly, identify opportunities for trade and payments growth, supported by actionable insights.
2. Automate repetitive tasks for smoother workflows
Manually combing through transaction logs or reconciling compliance data isn’t just tedious – it drains resources and increases the risk of human error.
How to fix it
Leverage automation to eliminate inefficiencies. Tools like Robotic Process Automation (RPA) can manage routine tasks such as generating Suspicious Activity Reports (SARs) or reconciling transactions, ensuring faster, more accurate outcomes. Automation not only saves time but also redirects resources to higher-value tasks like strategic risk analysis.
Automating repetitive processes can cut costs by 30% to 60% (according to McKinsey) while significantly improving output quality.This makes automation an essential component in optimizing your risk and payment systems.
3. Standardize data frameworks for better decision-making
When every team has its own way of managing data, it’s like speaking different languages within the same organization. Without consistency, it becomes harder to see the big picture or communicate effectively with stakeholders.
Why it matters
Inconsistent data management can lead to significant risks and regulatory penalties. For instance, in 2024, Barclays was fined £40 million by the UK’s Financial Conduct Authority (FCA) for failing to disclose payments made to Qatari entities during the 2008 financial crisis. This omission was linked to inadequate internal data and reporting frameworks.
The root challenge for many institutions lies in their fragmented data systems. Data is often scattered across multiple platforms, making it difficult – and sometimes impossible – to connect. Many tools force you to start from scratch by importing data manually, which is time-consuming and prone to errors. For operations leaders managing legacy processes that have been in place for decades, the prospect of overhauling these systems can feel overwhelming.
How to fix it
Tools like Elucidate’s Risk Module Builder address these challenges head-on by helping you build a customized data model tailored to your institution. Instead of requiring you to start fresh, it leverages the latent data you already have, integrating it into one cohesive system – such as seeing the insights in your existing tech stack, like your productivity software or CRM.
This provides a single, clear risk data story that aligns with your existing processes while eliminating the headaches of disconnected platforms. Elucidate ensures your data is standardized and compliant, giving your team confidence in their ability to make informed decisions. By connecting your data and streamlining workflows, the Risk Module Builder helps you move from fragmented data to actionable insights faster.
4. Adopt real-time data and visualization tools
Static reports may offer historical insights, but they don’t equip you to act quickly when risks arise. Real-time data provides the agility needed to stay ahead in today’s fast-moving financial landscape.
How to fix it
Deploy dashboards that present live data streams, making it easier to spot trends or anomalies at a glance. Visual tools allow stakeholders to quickly understand key insights without wading through complex spreadsheets, improving operational response times and strategic decision-making.
5. Enhance data literacy across teams for better outcomes
Even the best tools won’t deliver results if your team isn’t equipped to use them effectively. A lack of data literacy can lead to misinterpretations, missed opportunities, and underutilized systems. To combat the growing threats posed by tech-savvy criminals, pairing investment in tools with targeted training is critical for staying ahead in financial crime risk management.
How to fix it
Invest in regular training to help your teams confidently navigate and interpret data. Building a culture of data-driven decision-making ensures your organization fully leverages its risk and payments systems.
Organizations that prioritize data literacy report significant improvements in operational efficiency and employee satisfaction – creating a win-win for outcomes and workplace engagement. Leveraging tools like generative AI and automation can further strengthen your approach.
According to Accenture, companies that embrace AI-led automation achieve 2.5x higher revenue growth and 2.4x greater productivity. With 63% of organizations planning to increase their automation efforts by 2026, and 58% investing in financial use cases, those that fail to adopt these technologies risk falling behind their more innovative competitors.
Why simpler data systems matter
Simplifying your data systems isn’t just about improving workflows – it’s about transforming your entire approach to risk and payments operations. By consolidating and optimizing your systems, you can:
- Build trust through transparent and compliant processes.
- Improve accuracy with automation and standardized practices.
- Enable faster, smarter decisions with real-time insights.
- Empower teams with the right tools and skills to succeed.
- Unlock greater opportunities for your institutions through reliable, data-driven strategies built around your institution’s unique market position and risk appetite
Your next steps
Optimizing your risk and payment systems starts with asking the right questions:
- Are data silos limiting your ability to detect and respond to risks?
- Which repetitive tasks could be automated to improve efficiency and outcomes?
- Do your current tools support both operational growth and regulatory compliance?
Integrate and unify your data sources
With tools like Elucidate’s API, you can integrate all your data sources, whether via batch processing or real-time connections. Elucidate’s API integrates seamlessly into your existing tech stack, supporting smooth workstreams and enabling better risk and payment outcomes.
This means you can create your unique data model, specific to your organization’s scaling requirements; a unified system that helps eliminate inefficiencies and frees up resources for analysis and growth.
Build your risk data story
Elucidate’s Risk Module Builder offers scalable solutions for integrating real-time data, automating workflows, and aligning your systems with regulatory expectations. Simplify your data systems and unlock strategic growth, without the operational headaches.
