Business Transformation | 10.16.26

Citi Restricts AI Agents From Accessing Accounts

by: Akila Quinio; Joshua Franklin; Martin Arnold

Citigroup and Bank of America have restricted third-party AI agents from accessing customer accounts, citing security risks and uncertainty over liability for automated financial transactions. The moves follow growing concerns that AI assistants could transfer deposits into higher-yielding accounts, threatening banks’ low-cost funding sources. JPMorgan Chase has also announced restrictions, while banking executives have raised concerns with Federal Reserve officials. Analysts warn that widespread AI-driven cash transfers could force banks to offer higher deposit rates, reducing profitability. Regulators reportedly support restrictions while questions about authorization and liability remain unresolved. Citi still permits limited, read-only account access through certain open-banking providers.

Read the full article on Financial Times