In the ever-evolving world of financial crime compliance, staying ahead of technology trends is no longer a nice-to-have, it’s a necessity. The recent webinar by Fenergo, we revealed the results of our 2025 FinCrime Operations Benchmark survey by Fenergo offered a high-impact overview of how leading financial institutions are adapting to new operational pressures, technology imperatives and cost constraints. Drawing on data from our annual survey of senior decision makers in operations, compliance and technology roles at global banks, asset managers and asset servicers, the session unpacked the status quo of mid-office transformation and where firms must focus next to increase efficiencies, reduce risk and drive growth.
A Snapshot of Operational Realities
Financial crime operations remain costly and complex, with many firms still dealing with slow, inefficient onboarding, outdated systems, fragmented data and manual KYC reviews. These challenges have real consequences: 70% of firms lost clients in 2025 due to slow onboarding (up from 63% in 2024), over 10% of onboarding applications are abandoned, and this results in approximately US $2.72 billion in lost revenue across the markets studied.
This raised a central question: is AI the silver bullet and will 2025 be the year institutions finally automation, or will hesitation persist? Our research revealed a wide variation by region and maturity. For example, AI adoption for the automation of labour-intensive KYC/AML processes is higher in Singapore (92%) compared with the US (79%) and the UK (77%), highlighting clear regional differences in readiness and investment focus.
Some institutions are moving ahead with automation, while others are focused on strengthening foundational processes first. Investment banks are leading the charge, with 78% saying they are using advanced technology tools such as agentic/GenAI to automate KYC/AML processes, while the rate for asset servicers is significantly lower (68%).
Technology: The Tipping Point for Change
The webinar panellists framed AI undeniably as the key to unlocking unprecedented transformation yet adoption does not come without its challenges. On one hand, it offers the potential to streamline client lifecycle management (CLM) workflows, reduce manual effort and improve accuracy. On the other, it requires robust governance, clear regulatory alignment and a strategy for change management.
Institutions that have invested in automation are starting to realize improvements in key performance indicators: onboarding times, review volumes, backlog reduction, and cost per case. Our research illustrates that the gap between early adopters and laggards is widening, a trend that compliance leaders cannot ignore.
Looking Forward
The 2025 FinCrime Operations Benchmark research suggests that the industry is at a tipping point: organizations that adopt automation and smart technology sooner will likely outperform those that wait. Compliance operations are no longer just a cost center, they are increasingly a strategic differentiator within financial institutions. In a rapidly changing regulatory environment, financial institutions that embrace the AI wave can expect significant wins including robust compliance controls, competitive advantage and a streamlined client experience. Access the full conversation via the webinar link here and download the report here.