In contrast, while regulators moved quickly to modernise oversight systems and infrastructure, many banks have yet to match that agility. Instead, they doubled down on outmoded manual compliance processes that are now proving counterproductive; more than half (56%) of banks in Singapore still operate the majority of corporate client onboarding workflows manually. And only 1% have successfully automated the majority of their KYC and onboarding workflows.
A high-net-worth client walks into a Singaporean bank, eager to open an account. Three months later, frustrated by the endless paperwork and delays, they take their business to Dubai. Does this sound familiar at all? Well, this is the reality Singaporean banks face this year — with client abandonment at record highs due to outdated compliance processes. According to our research report, KYC in 2024 , nearly 90% of banks have lost clients in 2024 due to slow and inefficient onboarding, the highest among major financial hubs, outpacing even the UK and US.
Much of this upheaval stems from Singapore’s 2023 financial crime scandal, which triggered one of the largest regulatory crackdowns in the country’s history. In response, the Monetary Authority of Singapore (MAS) acted swiftly, implementing enhanced anti-money laundering (AML) measures to safeguard the integrity of the financial system, with technology and innovation playing a key role.
