# Banks have profited from idle cash for years. AI agents could change that.

Digest AI · Business & Funding · published 2026-09-26T08:42:00Z

Canonical: https://digestai.news/story/banks-have-profited-from-idle-cash-for-years-ai-agents-could-change-th

## Summary

banks that customers could use it to move idle cash into higher‑yielding accounts, tightening banks’ profit margins.

The KBW Nasdaq Bank Index fell about 2.6% on Tuesday as investors reacted to the new AI threat. Bank of America analyst Ebrahim Poonawala warned that real proof of disruption would come if deposit costs rise faster than rates or competition allow.

Charles Schwab experienced cash‑sorting pressure in 2023, drawing on expensive short‑term funding and seeing profits decline. The Fed’s rate hikes and a personal savings rate near a four‑year low add to the pressure on banks to attract deposits.

## Key points

- KBW Nasdaq Bank Index fell 2.6% on Tuesday after the agent’s release
- Banks profit from customers keeping cash idle; deposit sorting threatens margins

## Why it matters

The shift could erode banks’ low‑cost funding base, forcing higher deposit rates and squeezing net interest margins, a key concern for the financial sector’s stability.

## Sources

1. [Banks have profited from idle cash for years. AI agents could change that.](https://finance.yahoo.com/markets/article/banks-have-profited-from-idle-cash-for-years-ai-agents-could-change-that-154215138.html) (finance.yahoo.com, 2026-09-26)

## Cite

Digest AI, "Banks have profited from idle cash for years. AI agents could change that.", 26 September 2026, https://digestai.news/story/banks-have-profited-from-idle-cash-for-years-ai-agents-could-change-th

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