Entity Resolution for Financial Institutions - Complete Guide

Introduction – Why Entity Resolution Matters Now

Every organization deals with data that multiplies faster than it can be managed. From banks handling millions of customer records to asset managers reconciling fund structures across jurisdictions, the challenge is the same: duplicate, inconsistent, or incomplete records that create blind spots.

The one solid answer to tackle these hurdles is entity resolution. At its core, this is about finding and connecting all the records for a single real-world entity, like a customer or a company, even when that data looks different across your various systems. When you do it well, you get more trustworthy data, lower your compliance risks, and make your operations a lot more efficient.

The need is pressing. As regulations tighten and global operations expand, organizations are under pressure to deliver cleaner data, faster decisions, and stronger governance. Poor resolution creates cascading risks such as false positives in compliance checks, failed know-your-customer (KYC) processes, and even reputational damage. On the flip side, effective resolution enables smooth onboarding, accurate reporting, and better client experiences.

In this guide, we will define entity resolution, unpack its benefits and challenges, and share best practices for modern enterprises. Whether you are in financial services, technology, or fast-scaling businesses, this is your starting point for understanding one of the most critical building blocks of data management.

What is Entity Resolution?

Entity resolution is the process of connecting records that describe the same person, company, or account across different systems. For example, one database might list “ABC Capital Ltd.” while another shows “ABC Capital Limited.” A human knows they are the same, but machines often treat them as separate entities.

Simply put, entity resolution solves this problem by cleaning, matching, and linking data so organizations can see a complete and accurate view of each entity. It brings together variations, misspellings, incomplete records, and scattered details into a single, reliable identity.

Businesses run on decisions made from data. Without resolution, compliance teams may miss suspicious activity, customer onboarding may stall, and reports may carry errors. With resolution, the organization builds a consistent and trusted foundation for everything from risk assessments to client interactions.

Entity resolution is sometimes confused with simple deduplication, but it goes further. While deduplication handles obvious duplicate entries, resolution is the process of connecting the non-obvious ones that are scattered across different departments, countries, and data formats. Banks face one of the toughest challenges in managing duplicate client records across jurisdictions. Entity Resolutions for Banking streamline compliance checks and strengthen customer onboarding. In fields like asset management and fintech, this can be the difference between catching a compliance problem early on or dealing with a regulatory investigation down the road.

Benefits of Entity Resolution

Strong entity resolution creates advantages that go beyond tidy databases. It enables compliance, operational efficiency, and better client experiences.

1. Compliance confidence

Regulators expect clean and consistent records across all jurisdictions. The 2024 Thomson Reuters Cost of Compliance Report found that 67% of compliance leaders point to poor-quality or mismatched data as their single biggest challenge. Resolution ensures that filings, ownership records, and client due diligence checks all draw from accurate information. This reduces the risk of fines, delays, and reputational damage. For finance leaders, strong entity resolution ensures compliance confidence and sharper risk controls. Entity Resolutions for Finance can improve governance from a back-office task into a strategic capability.

2. Operational efficiency

Entity resolution eliminates duplicate work. Instead of reconciling scattered spreadsheets, teams rely on a single, authoritative record. According to PwC’s 2025 Data Trust Survey, organizations lose 15–20% of revenue annually due to inefficiencies tied to poor data quality. Resolution directly addresses this gap by streamlining workflows and freeing teams to focus on higher-value analysis and decision-making.

3. Better customer and investor experiences

False positives and mismatched records slow down onboarding and frustrate clients. Effective resolution minimizes these errors, allowing smoother know-your-customer (KYC) checks and faster approvals. PwC also reports that 82% of executives believe that poor data governance erodes customer trust. For asset managers and banks, where credibility drives growth, this creates a clear competitive edge.

These benefits position entity resolution as more than a technical exercise. It is a strategic enabler that helps organizations grow with control, stay ahead of regulation, and deliver confidence to their stakeholders.

Read More: Why Most Compliance Risks Start with Dirty Entity Data – and How to Fix It  

Challenges in Entity Resolution

Entity resolution is often presented as a clean solution to messy data. In practice, organizations run into barriers that can stall progress if they are not addressed directly.

Fragmented data

Financial institutions collect information across compliance systems, onboarding tools and transaction platforms. Fintech firms often scale fast but struggle with fragmented client records. Entity Resolutions for Fintech reduce the risks of manual reconciliation and compliance slips. Without a central view, even simple tasks like matching client identities become unreliable. An IDC survey in 2024 reported that nearly 70 percent of firms still struggle to unify entity data across departments, creating delays and blind spots. 

Manual work

Spreadsheets and reconciliations handled by hand are still common. They may work for a few hundred records, but not for thousands across jurisdictions. A Thomson Reuters compliance report found that manual reconciliation teams spend about 40 percent more time on audits compared to those using automated systems.

Accuracy risks

Errors come in two forms: false positives (unrelated records matched as one) and false negatives (duplicates missed entirely). Both cause damage. False positives waste resources on unnecessary investigations, while false negatives leave compliance gaps that regulators can penalize.

Global complexity

Rules shift across borders. A process that meets standards in the United States may not be accepted in the European Union. In 2025, the Financial Conduct Authority warned that inconsistencies in entity data across jurisdictions are now a major point of regulatory scrutiny.

These challenges make it clear that entity resolution is more than a technical exercise. Success depends on a foundation of clean data, supported by automation, consistent governance, and collaboration between compliance, operations, and technology teams.

Best Practices for Modern Entity Resolution

Firms that succeed in entity resolution treat it as more than a data exercise. They combine process, technology and governance in ways that make the outcomes reliable and scalable.

Centralize the data

The first step is creating a single source of truth. When all client, compliance and transaction records sit in one platform, resolution becomes faster and more accurate. In fact, a 2024 Deloitte survey found that firms with centralized entity data reduced compliance delays by 30 percent compared to those working with siloed systems.

Automate recurring tasks

Manual reconciliations are prone to error and take valuable time away from higher priorities. Automated workflows can flag duplicates, route approvals and monitor deadlines without constant human oversight. As a result, compliance teams focus more on strategy and less on clerical work.

Improve governance discipline

Technology alone cannot prevent errors. Strong policies, defined accountabilities and routine audits are equally important. In addition, governance provides the transparency that regulators and investors expect when reviewing entity data.

Encourage cross-functional collaboration

Entity resolution spans legal, risk, operations and technology teams. Leading firms make collaboration intentional by sharing platforms and processes across departments. This reduces bottlenecks and ensures that critical data points are never left unchecked. A report by Wolters Kluwer in 2025 noted that cross-functional teams were 40 percent more likely to complete compliance tasks on time.

Build for scale

Global firms cannot afford processes that break when volumes grow. Designing systems that adapt to new jurisdictions and data volumes helps organizations keep pace with growth while staying compliant.

Entity resolution is more of an ongoing discipline. When firms invest in clean data, automation and collaboration, they build resilience that can withstand regulatory change and operational pressure.

Entity Resolution for Strategic Growth

Entity resolution is often framed as a compliance task, but its real impact reaches much further. When executed effectively, it becomes a growth enabler for financial institutions.

Sharper insights

Clean and unified records allow firms to analyze customer behavior and market exposure with confidence. For asset managers, this means identifying investment risks earlier and reallocating portfolios faster. For banks, this can drastically improve credit assessments and speed up client onboarding, freeing teams from the tedious work of finding duplicate records. In fact, a 2024 Accenture survey found that companies with high-quality entity data made decisions 25% faster.

Trust with stakeholders

Investors, regulators and clients expect transparency. Accurate resolution helps firms show clean ownership structures and consistent compliance histories. This builds credibility in an industry where trust is currency, and it often becomes the difference between winning and losing business. 

Efficiency at scale

Growth inevitably adds complexity. Each new fund, subsidiary, or market entry introduces more data to reconcile. Without structured resolution practices, these layers slow expansion and inflate costs. With them, organizations grow faster while keeping compliance under control. Clean records and unified data improve decision-making speed across the financial sector. Firms investing in Entity Resolutions for Finance report stronger resilience and faster scaling.

Entity resolution, then, is not just about avoiding mistakes. It creates the clarity, trust, and efficiency that allow organizations to compete, scale, and innovate with confidence.

Read More: Why Financial Institutions Must Prioritize AI-Powered Entity Management in 2025 

How to Evaluate Entity Resolution Solutions

Choosing an entity resolution solution is not simply about picking the most advanced software. It is about finding the right fit for an organization’s scale, risk profile and long-term growth strategy.

Product-based platforms

Some providers focus on software-only offerings. They deliver powerful matching algorithms and visualization tools, but require firms to invest heavily in integration and ongoing maintenance. For asset managers or banks without large technology teams, this often creates hidden costs.

Service providers

Others provide outsourced support. They bring human capital to run resolution processes on behalf of clients. While this can ease the burden in the short term, it may limit flexibility and slow down innovation when regulations or business priorities shift.

Data aggregators

A third group supplies vast datasets on companies and entities, often sold on subscription. These improve coverage, yet they rarely provide the customization needed for complex financial structures.

Hybrid approaches

The most effective models often blend elements of all three. A hybrid approach combines a platform’s automation with managed services and customized workflows. This ensures scalability without overwhelming internal teams, while still giving clients control over their governance standards. When it comes to handling complex clients, a hybrid approach to data and services seems to pay off. According to a recent Gartner survey, companies that have moved away from product-only tools and embraced a hybrid model are seeing a significant difference, with client onboarding speeds improving by as much as 20%.

Read More: Why Compliance Should Start at the Entity Level, Not at the End of the Workflow 

When you’re a decision-maker, it is easy to get caught up in a solution’s list of features. The real goal is to find a partner that’s on the same page as your long-term vision. The best solutions will also adapt to new regulations, scale across different regions without a hitch, and give stakeholders the transparency they need. Ultimately, you want a partner that helps you build a more compliant business today while also setting you up for growth tomorrow.

Conclusion: Building Smarter Entity Resolution

Entity resolution has moved from a back-office chore to a front-line priority. It influences how firms manage risk, build trust with stakeholders, and expand into new markets. When companies centralize their data, automate recurring tasks, and enforce clear governance, they create a foundation that supports both compliance and growth.

At the same time, no single model solves the problem for everyone. Product platforms bring automation but demand heavy integration. Service providers reduce internal workload but often limit flexibility. Data aggregators expand coverage but rarely offer the customization that complex financial structures require. As a result, the strongest companies today are turning to hybrid approaches that blend technology, expert services, and custom workflows. This is exactly where TruNtity shines. Its platform combines powerful automation with dedicated managed services and customizable solutions, giving asset managers, banks, and fintech firms the clarity and control they need to succeed.

In short, entity resolution should not be treated as a compliance checkbox. When done well, it becomes a driver of growth and resilience. For organizations ready to move forward, TruNtity offers a path that is both practical today and adaptable for tomorrow.

About TruNtity: An Entity Resolution & Management System by SG Analytics

TruNtity, SG Analytics’ AI-powered entity management software, provides a secure, API-first architecture that streamlines compliance assurance. From real-time corporate action tracking to enhancing document intelligence via generative AI integration, TruNtity equips banks, financial institutions, and compliance officers to ensure resilience. Whether you want audit-ready workflows for KYC/AML procedures or comprehensive legal entity identification powered by built-in referential integrity, SG Analytics’ TruNtity platform will meet all those requirements and more.