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Singapore allocates 68.2 million U.S. dollars annually for anti-money laundering and know-your-customer procedures.

Singapore’s financial institutions are at the forefront worldwide in utilizing cutting-edge AI for combating financial crime, but numerous organizations continue to face challenges with inefficient onboarding processes that result in losing clients, as reported by Fenergo.

According to the firm’s report, 92% of financial institutions based in Singapore employ sophisticated AI technologies in their Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures, which is the highest percentage worldwide.

Nevertheless, 76% mentioned losing clients because of slow or ineffective onboarding, which was the highest percentage across all markets studied. Although this represented an improvement from 87% in 2024, the results highlight a continuing discrepancy between AI investment and client satisfaction.

Around the world, 70% of financial organizations lost customers because of problems during the onboarding process in the last year, compared to 67% in 2024 and 48% in 2023.

The typical new user dropout rate was around 10%, with commercial and corporate banking institutions experiencing the most difficulties because of intricate procedures.

Singapore companies continue to provide some of the quickest account setup processes globally, but they still encounter a greater likelihood of losing clients due to obstacles during onboarding. On the other hand, UK corporate banks experience the longest onboarding periods, frequently surpassing six weeks.

The report also points out the increasing expense and regulatory challenges associated with financial crime compliance. On average, companies worldwide invest US$72.9 million annually on AML and KYC activities.

Singapore’s average stands slightly lower at US$68.2 million, in contrast to US$78.4 million in the UK and US$72.2 million in the United States.