9 in 10 Singapore banks turn to AI for customer checks, fraud prevention

Singapore spends $88.2m per year on AML and KYC operations.

About 92% of Singapore-based financial institutions now use advanced artificial intelligence (AI) in their know your customer (KYC) and anti-money laundering (AML) processes — the highest adoption rate globally, according to Fenergo.

The report noted that financial institutions in Singapore are leading globally in their adoption of advanced AI for financial crime compliance.

Despite this, 76% reported losing clients due to slow or inefficient onboarding, also the highest rate amongst all markets surveyed. Whilst this marked an improvement from 87% in 2024, the findings underscore a persistent gap between AI investment and client experience.

Globally, 70% of financial institutions lost clients due to onboarding issues over the past year, up from 67% in 2024 and 48% in 2023.

The average onboarding abandonment rate stood at approximately 10%, with commercial and corporate banking firms facing the greatest challenges due to complex requirements.

Singapore firms continue to offer some of the fastest onboarding times worldwide, yet still face a higher risk of client loss from onboarding friction. In contrast, UK corporate banks report the slowest onboarding cycles, often exceeding six weeks.

The report also highlights the growing cost and regulatory burden of financial crime compliance. On average, firms globally spend US$72.9m per year on AML and KYC operations.

Singapore's average is slightly lower at US$68.2m, compared to US$78.4m in the UK and US$72.2m in the US.