Real-time data is the key to efficient financial screening, says LSEG Risk Intelligence’s latest study - Trade Treasury Payments

80% of financial institutions across the globe face substantial delays in their risk screening processes, according to new research by LSEG Risk Intelligence. Additionally, nearly one-third (31%) of these institutions encounter these delays often, while 6% experience them during every single screening process. 

These insights are revealed in LSEG’s upcoming whitepaper, “Operating at the Speed of Crime: The Case for Real-Time Risk Intelligence”, scheduled to be launched at the SIBOS conference in Frankfurt on 30th September.

The study says that these persistent delays create significant operational friction across critical business functions, from customer acquisition to transaction processing. The financial impact of these delays remains unquantified in the preliminary findings, but the widespread nature of the problem suggests substantial costs in terms of customer satisfaction, operational efficiency, and competitive positioning.

Manual processes are the root of inefficiency

The study says that the manual review procedures are the primary obstacle to efficient operations. Financial institutions that use manual screening methods report the most severe issues, with delays occurring approximately 10% of the time in their processes.

Advisory firms increasingly use hybrid approaches, with 59% combining manual and automated functions. This is higher than the 46% average among other financial institutions, including banks, insurance companies, and investment or private equity firms.

This reliance on manual processes creates multiple operational challenges. The LSEG study reveals that 77% of respondents cite manual review workload as a major obstacle, while 75% state difficulties with high false positive rates. These false positives require additional manual investigation, creating a compounding inefficiency that directly impacts compliance effectiveness and customer experience.

The role of real-time data

The research states that there is an overwhelming industry consensus on technological solutions, with 98% of financial institutions now considering real-time data important to their compliance workflows. The main benefits include preventing the use of outdated information (49%), enabling ongoing risk surveillance (48%), and improving the handling of rapidly evolving risk scenarios (48%).

As per David White, Global Head of Product & Data at LSEG Risk Intelligence, “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.” 

The path forward is tech + human expertise

Challenges in screening efficiency come from both manual processes and technical limitations. According to LSEG data, 75% of institutions have difficulties integrating new screening tools with existing systems, and 67% face issues with inflexible software. Furthermore, 64% of financial institutions cite delayed data updates as a key factor in screening inefficiencies.

To combat this, a multi-faceted technological approach is needed. ESG study recommends:

Real-time data access to enable financial institutions to make decisions using current information, reducing risk windows and enhancing accuracy. 

Compliance workflow automation to streamline manual processes, decreasing processing time and ensuring consistent protocol application. 

Artificial intelligence and machine learning technologies can improve operations by reducing false positives and identifying subtle risk patterns that human reviewers might miss in complex datasets. These technologies can analyse vast amounts of data to identify genuine risk signals while filtering out noise.

The study suggests that technology should help human judgment, not replace it. The industry views technology as a means to increase efficiency while maintaining essential human oversight in risk assessment.

The optimal approach is a human-in-the-loop model where technology handles routine screening while escalating edge cases for human review.

LSEG’s 2025 global study captured insights from 850 senior risk and compliance leaders across diverse financial institutions. The research spanned 15 countries throughout APAC, EMEA, and North America, providing a comprehensive view of compliance challenges facing the industry today.