Apollo’s Chief Economist Warns: AI Agents May Trigger “Slow-Motion Bank Runs”
1 hours ago
Apollo Chief Economist Torsten Slok warns that as AI agents begin managing users’ funds—automatically shifting household cash from low-yield demand deposit accounts to high-yield alternatives—it could trigger a “slow-motion bank run.” Slok notes the average annual interest rate on U.S. demand deposits is just ~0.1%, while providers including Revolut, SoFi, Varo, LendingClub, and Wealthfront offer rates between 3.3% and 5%. For a $10,000 deposit, this translates to roughly $10 in annual interest from traditional accounts, versus $330 to $500 from high-yield options. Slok contends that widespread adoption of such AI agents to optimize household cash returns could erode banks’ low-cost deposit base—their key funding source for lending—posing potential risks to the financial system. These AI agents can monitor account balances in real time, compare yields across financial institutions, automatically transfer idle funds, and repatriate money before bill due dates. Additionally, the report highlights that the crypto sector has started building payment infrastructure for AI agents: Coinbase’s x402 protocol enables AI agents to make fast online payments using stablecoins, with cumulative transactions totaling approximately 188 million to 205 million and around 69,000 active agents.
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