AI agents: a threat to bank deposits?
XLF•Citigroup said concerns that AI agents could intensify competition for bank deposits are overstated, citing trust, reliability, transparency and regulatory constraints. It sees French, Dutch and German markets as most at risk of deposit-pricing pressure, while Spanish and Irish markets look best placed to weather it.
1. Citi assesses deposit risks
Citigroup expects banking customers to keep adopting AI, but said trust, reliability, transparency and regulatory constraints may impede the use of third-party agents to find banking products. Andrew Coombs, Citi's head of European financials equity research, expects more AI tools to be embedded in banks' own digital offerings. Citi sees France, the Netherlands and Germany as most exposed to pricing pressure, while Spain and Ireland look best placed to weather the risk; Belgium, the UK and Italy fall in the middle. Citi named BBVA, Caixa and KBC as best placed among incumbent banks, and said BNP Paribas, ING, Lloyds and UniCredit have made inroads in building loyal customer bases.
