Singapore (VNA) – Banks in Singapore are increasingly turning to AI and automation to enhance services and address client losses due to inefficiencies in Know Your Customer (KYC) processes.
According to Singapore-based fintech firm Fenergo, banks in the city-state have experienced the highest client loss rates globally due to KYC-related delays. Financial institutions are also under growing pressure to comply with stricter Anti-Money Laundering (AML) regulations that took effect in 2024.
Nearly 90% of banking executives in Singapore report losing clients due to slow and inefficient onboarding processes, while 91% attribute high client abandonment rates to poor data management and fragmented workflows.
Additionally, 79% cite manual KYC procedures as a key bottleneck that disrupts customer experience and slows operations, and 47% point to outdated compliance infrastructure as a barrier to digital transformation.
To tackle these challenges, many banks are adopting AI and automation to streamline KYC processes. Around 38% of financial institutions plan to implement AI-driven solutions to improve compliance workflows, enhance verification accuracy, and speed up onboarding. Meanwhile, 30% aim to leverage AI-powered tools to improve data accuracy, signaling a broader shift toward technology-driven regulatory compliance./.
