LSEG Study: Real-Time Data and Automation Key to Fixing Risk Screening Delays

LSEG has today released a preview of findings from the latest LSEG Risk Intelligence global market survey which will be published in its entirety in a white paper “Operating at the Speed of Crime: The Case for Real-Time Risk Intelligence” to be released September 30th at the SIBOS conference in Frankfurt. The survey results show that compliance workflows automation, AI, and real-time data access are key enablers of more efficient, accurate, and responsive customer screening processes, but there was strong sentiment that AI should replace human input.

David White, Global Head of Product & Data, LSEG Risk Intelligence said:“As financial crime accelerates in complexity and speed, investing in real-time data and advanced screening technologies is no longer optional — it’s imperative. But technology alone won’t solve the challenge. The true differentiator lies in choosing partners and data sources that align with each institution’s unique risk appetite, operational realities, and long-term compliance strategy.

Industry Plagued by Widespread DelaysAll financial institutions surveyed reported experiencing delays in their onboarding and payment processes due to compliance screening. Nearly a third (31%) said delays happen often, and 6% of institutions are facing the challenge of delays occurring every single time; in total four out of five (80%) said these delays happen at least occasionally. The type of screening process used is related to the frequency of delays.

Manual processes are particularly inefficient, with delays occurring every time for 10% of institutions that rely on them. Advisory firms are hit the hardest, with 14% reporting constant delays. This is notable because a higher percentage of these firms (59%) use a mix of manual and automated functions, compared to the 46% average across other financial institutions (Insurance, Bank and Investment / private equity).

Operational and Technological Issues Present Major Challenges

The findings reveal the considerable time and resource demands on teams, driven by high volumes of alerts and the need for human intervention. The majority of financial institutions admit to struggling with the need for manual review and remediation workload (77%) and managing a high number of false positives (75%).

Technology-related issues are also major hurdles and suggest current IT systems and tools may not be fully aligned with operational needs, leading to inefficiencies and slower screening processes. Three-quarters of institutions face issues integrating new tools (75%) with existing systems and dealing with inflexible software (67%). Additionally, some financial institutions noted delays in data updates (64%).

Real-time Data Access is Critical to Compliance Workflows

Real-time access to key data is the most critical factor for financial institutions. Overall, almost all financial institutions surveyed (98%) said real-time access to sanctions and risk data is important to their compliance workflows, with 62% rating it as very important.
The biggest advantages of real-time data are seen as managing risk in real-time. It helps financial institutions avoid outdated data (49%), monitor risk continuously (48%) and manage fast-moving risk more effectively (48%).

Enabling compliance and regulatory alignment and improving operational efficiency and customer experience are also recognized as important benefits.

Compliance Workflows Automation and AI Set to Transform Customer Screening, But AI Should Not Replace Human Input

When considering improvements to the effectiveness of the risk screening process, financial institutions identified automation and AI integration as key priorities, with 21% highlighting this as a focus area. Respondents provided a range of examples, from enhancing real-time analysis and identifying fraudulent patterns to automating the verification of customer compliance documents. Several respondents emphasised that AI’s role is to complement, rather than replace, the customer screening process, particularly by handling initial tasks. 

About the Study

In mid-2025, LSEG surveyed 850 senior decision makers with responsibility over risk and compliance in financial institutions including top tier banks, wealth and advisory, banking (retail and digital) and investment (asset management and insurance). The survey included a wide range of countries and jurisdictions including:

• APAC (250): Australia, Hong Kong, Japan, Malaysia and Singapore
• EMEA (400): France, Germany, Italy, Nordics, Spain, Switzerland, UAE and UK
• North America (200): Canada and USA