Macro
AI Agents Pose Risk to US Bank Deposits, Warns Economist Torsten Slok
In a recent warning, Torsten Slok, Chief Economist at Apollo Global Management, raised concerns about the impact of agentic AI on US bank deposits. During a discussion on September 27-28, 2026, he suggested that AI tools could automate the process of finding better interest rates, potentially leading to a significant shift of customer funds from low-yield traditional banks to higher-paying fintech products.
Currently, banks offer an average interest rate of 0.1% on checking accounts and around 0.4% on savings accounts, while fintech platforms provide rates between 3.3% and 5%. This disparity could incentivize depositors to move their funds if AI agents, like Meta's Muse, gain the ability to facilitate transfers.
Slok's analysis indicates that approximately 58% of a typical bank's deposit franchise value comes from “sleepy deposits,” which are funds that remain stagnant due to a lack of customer engagement. If banks are compelled to raise rates on $3.8 trillion in customer savings to retain these deposits, they could incur an additional $79 billion in annual interest expenses, potentially jeopardizing their net income.
While a mass withdrawal of deposits is unlikely due to regulatory and technical barriers, banks may need to increase interest rates to prevent customer flight. This could diminish the profit margins that banks rely on, creating a challenging environment for both traditional banks and fintech companies.
FAQ
What concerns did economist Torsten Slok raise about AI and US bank deposits?
Torsten Slok warned that agentic AI could automate the search for better interest rates, potentially leading to a shift of customer funds from traditional banks to higher-paying fintech products.
What are the current average interest rates offered by traditional banks compared to fintech platforms?
Traditional banks offer an average interest rate of 0.1% on checking accounts and around 0.4% on savings accounts, while fintech platforms provide rates between 3.3% and 5%.
What are 'sleepy deposits' and why are they significant?
'Sleepy deposits' refer to funds that remain stagnant due to a lack of customer engagement. They account for approximately 58% of a typical bank's deposit franchise value, making them crucial for banks' financial stability.
What could happen if banks are forced to raise interest rates to retain deposits?
If banks raise rates on $3.8 trillion in customer savings to retain deposits, they could incur an additional $79 billion in annual interest expenses, which might jeopardize their net income.
Is a mass withdrawal of deposits likely due to AI advancements?
While a mass withdrawal of deposits is unlikely due to regulatory and technical barriers, banks may still need to increase interest rates to prevent customer flight, impacting their profit margins.