AI Agents Could Trigger Bank Runs by Moving Consumer Cash to Higher Yields, Economist Warns

Personal AI agents, like Meta's newly launched Muse, could initiate a novel form of bank run by automatically transferring consumer funds from low-interest checking accounts to higher-yield options, warned Torsten Sløk, chief economist at Apollo.

This potential disruption arises as AI agents gain access to users' financial information and take on an expanding array of tasks. "If every household used AI agents to optimize the return on their cash balances, banks could lose a large share of the cheap deposits they rely on to make loans, which would be a problem for the entire financial system," Sløk stated in a recent note.

The incentive for consumers is significant. A $10,000 balance earning 0.1% interest yields approximately $10 annually, whereas the same amount at 5% would generate around $500. Sløk's analysis identified several fintech and online accounts offering interest rates between 3.3% and 5%, far exceeding the FDIC national averages of 0.4% for savings accounts and 0.1% for checking accounts.

Banks traditionally profit by paying depositors low interest rates on idle cash and lending that money out at higher rates. However, AI agents could dismantle this model by simplifying the process for consumers to find and move their money to accounts offering better returns.

Meta's Muse, launched in September, is designed to perform tasks for users rather than just respond to queries. Financial services company Plaid has stated that its network allows Muse access to user-authorized data from over 12,000 financial institutions, including account balances, transactions, and investment details. Plaid has not yet confirmed if Muse can facilitate money transfers between accounts.

Sløk's warning suggests that such automatic cash sweeps could become a reality in the near future, contingent on widespread adoption of the technology. He did not provide estimates on the potential scale or timeline of such fund movements.

Shama Hyder, a professor of practice at the Link School of Business in Miami, acknowledged the broader threat AI poses to banks but expressed caution about the immediacy of a deposit flight. "A run-like event needs millions of households to hand an AI agent the keys to their checking account, and they aren’t there yet," Hyder said. She added that consumers are likely to use AI tools for analysis long before entrusting them with transaction authority.

However, Hyder noted that banks heavily reliant on customers leaving funds in low-yield accounts could face increasing pressure as AI reduces the friction associated with comparing financial products. "A bank that depends on customers not bothering to shop around has a business model built on friction, and AI is very good at removing friction," she explained.

The Post has reached out to Meta and Plaid for comment.