Agentic AI and Bank Deposits: What’s the Worst that Could Happen?

Bank Nerd Corner welcomes Todd Phillips, an assistant professor at the Georgia State University’s Robinson College of Business, to discuss a not-so-theoretical thought experiment about the intersection of artificial intelligence, deposit stability and bank liquidity, 

Todd’s paper, “When Siri Becomes Deposit Broker,” explores the implications for banks if consumers and businesses widely adopt agentic artificial intelligence capabilities that could automatically and autonomously move customer funds out of banks, either for rate seeking or stability reasons. 

This imagined application would continue the long tradition of “deposit brokers” in the industry, a historic deposit designation that indicated the deposits were “hot” and not fully relationships. This time, they — and their regulators — may not realize their customer deposits are “hot” before it’s too late. We talk about the technology that makes this possible, why the definition of deposit broker matters, what are regulators’ limitations and how banks should respond. 

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Read “When Siri Becomes a Deposit Broker” here: https://southstatecorrespondent.com/category/banker-to-banker/

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