Major banks block AI agents from managing customer accounts

Major financial institutions including JP Morgan, Bank of America, Citi, and Schwab have stated they will not allow outside AI agents to move money on behalf of customers. Amazon has also shut off access to certain AI tools due to similar concerns. Joseph Shalom estimates that Americans hold $15 trillion in idle cash in checking and savings accounts, earning between 7 and 35 basis points, compared to 370 basis points in money market funds. This disparity represents a missed opportunity of approximately $180 billion annually in interest. Shalom argues that banks are protecting their moats and switching costs, as agents could move funds to higher-yielding accounts or rebook flights at lower costs. He predicts that once security and KYC issues are resolved, it will be inexcusable for banks to deny agent access. Shalom views the current restrictions as a temporary barrier to irreversible technological progress. He contends that banks are clamping down on AI agents to protect their profitability, but that this resistance will be overcome by the efficiency and transparency agents provide. Shalom stated, "It's going to be inexcusable in a few months when the security is handled and the regulatory is handled not to let a human have their agents access their accounts."