AI agents threaten bank profits

One of the quietest sources of profit for banks is located in the most familiar place to all of us: The money simply sitting in checking accounts.

Customers leave trillions of dollars in deposits and savings accounts, even when higher interest rates are available elsewhere. Moving funds requires comparison, opening an account, and often a fair amount of effort, so most money remains where it is. Artificial intelligence agents threaten to eliminate this exact friction.

Over the weekend, Reuters dedicated its "Chart of the Week" to this new phenomenon: In the US, approximately $3.8 trillion is held in savings accounts. According to calculations, if competition driven by AI agents forces banks to raise average interest rates from about 1.9% to roughly 4%, the additional cost to the industry could reach about $79 billion per year.

Instead of you searching for interest rates, the computer will do it

The scenario is quite simple. An AI agent receives permission to view your accounts, understands how much money is needed for ongoing payments, and identifies that tens of thousands of shekels or dollars are simply standing idle in the account. Simultaneously, it scans banks, money market funds, and financial platforms to find where the money can yield higher returns.