According to a new report by Fenergo, Singapore’s financial institutions lead the world in adopting advanced AI for managing financial crime—with 92% using the technology for their Anti-Money Laundering (AML) and Know Your Customer (KYC) processes.
Despite this leading technology adoption, a paradox exists: Singapore also reported the highest rate of client loss globally (76%) due to slow or inefficient onboarding procedures. Though this loss rate has improved slightly from 87% in 2024, it highlights a persistent failure to translate technology investment into a seamless client experience.
Global and Operational Context
Globally, the problem of client loss from onboarding issues is worsening, with 70% of financial institutions losing clients over the past year, up from 48% two years prior. The average client abandonment rate for onboarding currently stands at around 10%, with corporate and commercial banks facing the most significant hurdles due to complex regulatory requirements.
Though Singaporean firms are recognized for having some of the fastest onboarding times in the world, they still face a high risk of client attrition due to friction in the process. In comparison, UK corporate banks have the slowest cycles, often taking over six weeks.
The compliance efforts driving these processes come at a high cost: the average global annual spend on AML and KYC operations is $72.9 million. Singapore’s average spending is slightly lower at $68.2 million, compared to $78.4 million in the UK and $72.2 million in the US.
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