Nearly 90% of Singapore banks lose clients due to onboarding delays

Singaporean banks have been experiencing the highest client losses worldwide due to Know Your Customer (KYC) inefficiencies. 

Nearly 90% of banking executives in Singapore report losing clients due to delays and inefficiencies in the onboarding process, marking a 35% increase from 2023, according to Fenergo.

Fenergo said Singaporean banks have been experiencing the highest client losses worldwide due to Know Your Customer (KYC) inefficiencies. Financial institutions are under mounting pressure to comply with stricter Anti-Money Laundering (AML) regulations that took effect in 2024.

While banks in the US, UK, and Japan face similar challenges, Singapore has emerged as a hotspot for compliance breakdowns, highlighting the urgent need for reform.

Regulatory and financial consequences are compounding the crisis with 91% of financial institutions attributing high client abandonment rates to poor data management and siloed workflows.

Additionally, 79% of banking executives point to manual KYC processes as a major bottleneck that disrupts customer experience and slows business operations. Around 47% blame outdated compliance infrastructure, which hinders digital transformation and contributes to inefficiencies.

In response to these challenges, some banks have turned to AI and automation to improve KYC processes with 38% of financial institutions planning to implement AI-driven solutions to streamline compliance workflows, enhance verification accuracy, and reduce onboarding times.

Another 30% aim to improve data accuracy using AI-powered compliance tools, signaling a gradual shift toward technology-driven regulatory solutions.