TREE NEWS update: Citigroup and Bank of America have become the latest major US banks to block third-party AI agents from logging into customer accounts or initiating transactions directly on their digital banking platforms. Citi said the restriction is meant to protect account and information security. The banks have told regulators they fear AI agents could shift idle funds in pursuit of higher yields, draining deposits.
Citi, BofA Restrict AI Agents From Accessing Customer Accounts
The stated security rationale is only part of the story: the banks' own filings point to deposit stability as the real concern, since agents that move idle cash toward higher yields could erode a cheap funding base. That tension — banks selling AI convenience while fencing off the one use case that threatens their economics — is likely to define how agent access is negotiated across the sector. Whether regulators treat deposit defense as a legitimate basis for restricting third-party agents, or as incumbents entrenching themselves, is the open question.
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