Modernisation has become a strategic necessity across financial services. Most organisations recognise that sprawling data estates are expensive to maintain, operationally fragile and increasingly risky from a regulatory perspective.
Yet one phrase is still enough to stall progress: data migration. When the conversation turns to historic records, especially communications data, hesitation quickly replaces momentum, said Wordwatch.
That caution is well founded. Wordwatch’s recently commissioned research among compliance, IT, surveillance and governance professionals shows that nearly half of financial services respondents, 49%, see the risk of migrating historic data as their single biggest concern when consolidating compliance systems. This anxiety persists even as the pressure to modernise intensifies.
The challenge is compounded by the fact that 79% of regulated organisations still depend on fragmented recorders and legacy platforms for communications governance and archiving. These environments were never designed to support today’s regulatory expectations, yet they continue to underpin some of the most sensitive and evidential datasets in the organisation.
Historic communications data carries a very different risk profile to most enterprise information. These records are evidential by nature, meaning organisations are not simply moving files, but preserving integrity, context and proof. Regulators request complete communications records with increasing frequency, and 79% of respondents reported receiving such requests in the past year alone. The data itself is often messy, spread across multiple vendors, formats and generations of technology, with inconsistent metadata accumulated over many years. On top of that, retention policies, legal holds and auditable deletion rules must be applied consistently, or risk is amplified rather than reduced.
As a result, the perceived danger of migration often outweighs the benefits of modernisation. This creates a form of paralysis, where organisations accept the shortcomings of legacy systems because change feels even riskier.
However, delaying transformation only deepens the problem. Wordwatch’s research highlights that siloed record-keeping remains common, with some firms still relying on outdated platforms that make it harder to meet obligations under regimes such as MiFID, DORA and GDPR. Even where leadership recognises the need for change, budget constraints, resource pressure and fear of disruption frequently bring programmes to a halt before they begin.
A key shift in mindset is required. Data migration does not need to be a single, high-risk, big-bang event. A safer approach treats decommissioning as a controlled transition. Live and historic recordings can be ingested into a central evidential archive while preserving original formats and proving lineage. Metadata can be standardised to improve discovery and governance, while existing recorders continue to run in parallel through open, API-first integrations. Continuous validation of completeness and policy adherence allows gaps to be identified early, not during a regulatory investigation.
In practice, successful decommissioning follows a phased roadmap. Organisations start by mapping what is captured today, and crucially, what is missing or not recorded to evidential standard. They then consolidate records into a single source of truth without forcing an immediate rip-and-replace. Original formats are preserved, while standardised copies enable efficient search across years of back catalogue. Reconciliation becomes continuous rather than episodic, and policy enforcement is centralised to reduce over-retention risk and improve audit readiness. Legacy systems are retired gradually, at a pace that balances risk and operational stability.
When done well, the end state is deceptively simple: one version of the truth, one policy layer, and one place to investigate, export and report. Manual reconciliation disappears, brittle connectors are removed, and fragmented archives are replaced with a defensible, regulator-ready foundation.
For organisations reviewing their communications archiving strategy or planning legacy system decommissioning ahead of 2026, Wordwatch’s guide brings together the research findings, risks and practical roadmap in full.
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