Strategic Tech Upgrades for Managing Unstructured Data in Finance
6 November 2026
Data is the lifeblood of the modern economy, and financial services generate information faster than ever. A large share of it is locked in formats that are hard to process: legal contracts, audio recordings and everyday email threads. Industry estimates commonly put unstructured data at 80% to 90% of enterprise information. Gartner says it is growing about three times faster than structured data. For financial leaders, handling this mountain of text and multimedia is no longer just an IT headache. It is a leadership challenge that affects team productivity and regulatory compliance. Before deploying advanced AI tools, leaders must make sure their digital foundations are sound, and that starts with a culture of proactive management.
Why Unstructured Data Is a Leadership Issue
Technology teams hold the tools, but managers hold the decisions that determine whether unstructured data becomes an asset or a liability. Someone must decide what to keep, who may access it, how long it stays and who answers to the regulator when something goes wrong. If those questions have no owner, information piles up in inboxes and shared drives. Nobody can find it when an auditor, a customer or a court asks.
Name an accountable senior manager for unstructured data, and ask each department head to say where their team’s records live. A simple map of emails, PDFs, call recordings and legacy archives turns a vague worry into a list of risks. Those risks can then be ranked and funded. Our decision making knowledge hub offers a structured way to weigh competing technology investments.
A Note on the Examples Used
Several examples in this article come from Australian financial regulation, and some statistics come from US-based research and are quoted in US dollars. Rules on data, privacy and operational risk differ from country to country. Treat the details as illustrations, and check the requirements that apply to your own jurisdiction.
The Hidden Costs of Fragmented Information
The value locked in this data is largely untapped. A Deloitte survey from 2019 found that only 18% of organisations could take advantage of unstructured data. That figure is old, so leaders should test it against their own experience. Gartner’s estimate of annual growth of 55% to 65% is widely repeated, which suggests the gap is more likely to widen than close. A data intelligence solution such as Nuix Neo For Financial Services can give leaders tools to process complex datasets. It can also automate parts of risk management and surface useful insights without adding operational friction.
Fragmented data also creates security weaknesses, and the stakes are high. IBM’s 2024 report put the average cost of a data breach for financial organisations at USD 6.08 million, 22% above the global average across all industries. Costs move from year to year, so check the latest edition. The point holds, though. The less you know about where sensitive information sits, the harder it is to protect.
Aligning Technology With Shifting Regulatory Demands
In Australia, regulators are tightening the oversight that boards must keep over data and technology risk. The Australian Prudential Regulation Authority’s operational risk standard, CPS 230, took effect on 1 July 2025. It makes the board ultimately accountable for operational risk, and it requires regulated entities to manage the material service providers they rely on. Existing contracts have until the earlier of their next renewal or 1 July 2026 to comply. APRA finalised targeted amendments in April 2026. Compliance is no longer only a legal necessity. It is a driver of technology upgrades.
Handling data subject access requests is also becoming a burden. Gartner has estimated that manually fulfilling one request costs about USD 1,524, mostly in staff time spent searching siloed systems. The term comes from the GDPR, and Australian entities handle similar access requests under the Privacy Act. Either way, the cost points to the same fix: an organisation that knows where its records are can answer faster and more cheaply.
Key Steps for Implementing Strategic Data Upgrades
Upgrading your technology for complex data takes a strategic approach. It is about creating an environment where data is accessible, secure and ready for future innovation, not just buying software. Five steps help leaders get there.
Conduct a Thorough Data Audit
Before applying any new tools, find out where unstructured data lives. Ask each department to list its repositories: email archives, shared drives, call recordings, chat tools, scanned contracts and legacy systems nobody has switched off. Note the sensitivity of what each one holds and who is responsible for it. The exercise usually uncovers duplicate files, forgotten archives and compliance risks, and it gives you a baseline against which to judge every later upgrade.
Prioritise System Interoperability
Make sure new software integrates with existing legacy systems before you buy it. Ask suppliers to demonstrate the product on a sample of your own data, not a polished demonstration set. Check that staff can search across repositories from one place, and that you can retrieve your data in a usable form if you ever change supplier. A unified environment removes information silos and cuts the time employees spend searching for files.
Prepare for Artificial Intelligence
Data readiness decides whether AI projects survive. Gartner predicts that through 2026 organisations will abandon 60% of AI projects that are not supported by AI-ready data. Its survey found that 63% of organisations either lack the right data management practices or are unsure whether they have them. Cleaning and organising unstructured information is a first step, not an afterthought. Remove duplicates and outdated files, label what remains, set access rules, and start with one clear use case before widening the scope.
Automate Routine Compliance Tasks
Intelligent automation for areas such as anti-money laundering monitoring and access requests can help compliance teams handle larger volumes without adding headcount. Vendors often quote dramatic gains, so test any claim against a pilot in your own environment. Time a sample of tasks before and after, and keep a person responsible for decisions that carry regulatory consequences. Automation should speed up the search and the paperwork, not replace the judgement.
Measure the Payoff
Set a few simple measures before you start. Track how long it takes to find a document, how many access requests you close each month and how many records sit outside agreed systems. Review them every quarter. Good measures show whether your unstructured data programme is paying its way, and they give the board something concrete to scrutinise. If a measure does not improve after two reviews, change the approach rather than waiting for the next budget cycle.
Final Thoughts
Managing unstructured data well is a leadership responsibility, not just a technical project. Name an owner, map where your information lives and treat regulation as a reason to modernise. Choose tools that connect with existing systems, and make the data ready before you ask AI to work on it. Financial institutions that fail to upgrade risk falling behind in competitiveness and regulatory standing. Leaders who treat data management as strategy, and who care about team efficiency, can turn a costly liability into a strategic asset.
Disclosure and Disclaimer
This is a partnered post. See our disclosure policy for details. The content on this site is provided for general information and educational purposes only. It is not intended as professional legal, regulatory, financial or technology advice. Regulatory requirements, privacy law and technology markets vary by jurisdiction and change over time, and the statistics quoted come from third-party studies of varying age and scope. UK readers should refer to current guidance from the Financial Conduct Authority and the Information Commissioner’s Office. US readers should note that federal and state requirements differ and should consult a qualified adviser. Australian readers should refer to current guidance from APRA. Readers should seek qualified professional advice for their specific situation. The Happy Manager and Apex Leadership Ltd accept no liability for actions taken in reliance on the content of this article.
Further Reading
- Operational Risk Management (CPS 230) — Australian Prudential Regulation Authority: APRA’s page on the operational risk standard, its implementation timeline and the register of material service providers. Read the guidance
- CPS 230 Compliance: Where to From Here? — MinterEllison: A law firm’s briefing on the standard’s third-party risk requirements and what organisations should do next. Read the article
- Lack of AI-Ready Data Puts AI Projects at Risk — Gartner: A Q&A on what AI-ready data requires and why traditional data management is not enough. Read the release
References
- GeekWire sponsor post (2020), Why Unstructured Data Is Your Organization’s Best-Kept Secret (Gartner estimate that unstructured data is 80% to 90% of new enterprise data and growing three times faster than structured data; 2019 Deloitte survey finding that 18% of organisations could take advantage of it). https://www.geekwire.com/sponsor-post/unstructured-data-organizations-best-kept-secret/
- Athento (2025), Unstructured information: the great challenge (and opportunity) for companies in 2025 (growth of 55% to 65% a year, attributed to Gartner). https://www.athento.com/unstructured-information-the-great-challenge-and-opportunity-for-companies-in-2025/
- IBM (2024), Cost of a data breach 2024: Financial industry (average cost of USD 6.08 million, 22% higher than the global average). https://www.ibm.com/think/insights/cost-of-a-data-breach-2024-financial-industry
- Australian Prudential Regulation Authority (2023), Prudential Standard CPS 230 Operational Risk Management (commences 1 July 2025; board ultimately accountable for operational risk and service provider management). https://www.apra.gov.au/system/files/2023-07/Prudential+Standard+CPS+230+Operational+Risk+Management+-+clean.pdf
- Australian Prudential Regulation Authority (2026), Operational risk management (transition to 1 July 2026 for existing service provider contracts; targeted amendments finalised April 2026). https://www.apra.gov.au/operational-risk-management
- Mimecast (2025), Data privacy: The DSAR crisis (Gartner estimate of USD 1,524 to process a data subject access request manually). https://www.mimecast.com/blog/data-privacy-the-dsar-crisis/
- Gartner (2025), Lack of AI-Ready Data Puts AI Projects at Risk (through 2026, organisations will abandon 60% of AI projects unsupported by AI-ready data; 63% lack or are unsure of the right data management practices). https://www.gartner.com/en/newsroom/press-releases/2025-02-26-lack-of-ai-ready-data-puts-ai-projects-at-risk
Image by 200 Degrees from Pixabay
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