Singapore’s banking sector is facing an unprecedented challenge as client attrition due to slow and inefficient onboarding practices has reached record levels, according to new research by Fenergo.
A global study of over 150 C-level executives from corporate, institutional, and commercial banks in 2024 in Singapore revealed that almost 90% have lost clients over the past year due to delays and inefficiencies in onboarding – a dramatic 35% increase from 2023.
While banks worldwide, including those in the US, UK, and Japan, are experiencing similar issues, Singapore has been hit the hardest, highlighting a significant industry-wide problem.
The research shows that banks in Singapore are dedicating more time and resources to KYC processes, which are vital for anti-money laundering (AML) compliance, than any other region surveyed.
91% of respondents cited poor data management and siloed workflows as the main reasons for high abandonment rates, while 79% of executives pointed to subpar customer experiences, and 47% blamed overly complex onboarding processes.
These inefficiencies come at a time when Singapore’s financial institutions are under pressure to comply with the national anti-money laundering strategy, which was launched after the high-profile money laundering scandal in 2023.
Cengiz Kiamil, Managing Director at Fenergo, commented:

“Banks are now required to double down on client due diligence to better understand client risk as part of the country’s clampdown on AML. The extra scrutiny and a wide-scale dependence on manual processes is having an immediate and negative impact on the client and the bank’s bottom line.”
While only 1% of banks surveyed have successfully automated the majority of their KYC and onboarding workflows, the report reveals a growing interest in AI-driven solutions.
38% of respondents indicated plans to implement AI to enhance operational efficiency, while 30% aim to improve data accuracy with AI-powered tools.
In today’s rapidly changing regulatory environment and the growing threat of financial crime, firms must prioritise strengthening their client onboarding and KYC processes, Kiamil emphasised.
However, traditional banks in Singapore have been slow to adopt innovative technologies like cloud computing and AI, despite regulatory encouragement.
On the other hand, those leveraging automation and AI can transform KYC and onboarding from mere compliance tasks into strategic advantages.
What was once a back-office concern has now become a key focus at the executive level.
Featured image credit: edited from freepik