Rethinking KYC and financial crime: Get the strategy right first

Despite initial scepticism, many organisations still get caught up in the hype. There’s a lot of pressure to justify the investment and prove the right decision has been made. Teams can fall victim to optimism bias, overestimating how quickly the system can be deployed and underestimating the complexities of procurement, configuration, onboarding, and integration. 

Later, as the project unfolds, expectations collide with reality. Timelines slip, frustrations mount, and by the time the platform is live, the efficiency gains everyone was expecting are nowhere to be seen. Workflows take time to bed in, teams need to adapt, and refinements are needed before the benefits materialise – often months or even years later. 

It’s all too easy to forget that installing a shiny new system won’t automatically fix broken processes. If inefficiencies are baked into your operating model, technology will just reinforce them. A platform won’t remove unnecessary steps, streamline approvals, or fix fragmented workflows. Without making broader process and governance changes first, the expected improvements won’t happen. 

For financial crime operational leaders, the consequences of a bad implementation can be severe. If you’ve been through a failed tech rollout before, you’ll recognise these common issues: 

• Projects stalling or missing key objectives. 

• Budget overruns spiralling due to unexpected costs. 

• Internal friction between sponsors, business teams, and technology teams. 

• Workarounds becoming permanent sticking plasters. 

• Damaged reputations – sometimes serious enough to force a vendor change or leadership reshuffle.

We recently worked with a client that faced all these issues after choosing a platform that had never been used in their industry. Costs escalated, timelines slipped, and tensions with the vendor grew. The root cause was a lack of robust due diligence and a failure to align the system with the organisation’s operating model and strategy. 

These mistakes are expensive. Seven-figure cost overruns are common, and in the worst cases, we’ve seen nine-figure losses. 

If you’re at the start of this process, the best thing you can do is invest more time upfront. Get the internal strategy right first, before committing to a vendor. 

Key Steps: 

• Define your efficiency strategy. Don’t just focus on the technology – work out how processes, roles, and responsibilities need to change. 

• Design your Target Operating Model first. Choose a system that fits your strategy, not the other way around. You’ll likely need to tweak things to accommodate new tech, but that should be intentional, not a last-minute surprise. 

• Do proper due diligence. Make sure the platform supports your future workflows. Be sceptical of vague assurances that ‘we can make that work’ – ask how, and check if it’s been done before. 

• Set realistic expectations. Benefits take time. Overpromising leads to disappointment and resistance. 

If you’re already engaging with vendors, ask the right questions: 

• What can’t the platform do? Limitations matter as much as features. 

• How does it compare to your existing system? Look at data models, workflows, and integration points to avoid nasty surprises. 

• What are the hidden costs? Extra modules, maintenance fees, upgrades – factor these in. 

• What’s live today vs. in development? If it’s not available now, get commitments in writing. 

• Has it been successfully implemented for similar firms? If not, proceed with caution. 

• Are the right internal stakeholders involved? This isn’t just an technology decision – it needs input from across the business.