Citi stops external AI agents and wants a check for each agent

At the Money20/20 conference this week, Naveed Anwar of Citi told that Citi stops external AI agents, but it keeps read only access. Citi has $2.6 trillion in assets and will not go fast to open access. Anwar tells that banks must have a “know your agent” procedure, the same as the know your customer checks that they use at this time.

What Citi does

Citi stops each agent that tries to connect to its systems. Only the read only open banking access that it had before stays. Anwar wants rules that also follow the instructions of regulators. After this, Citi will speak to companies about how to open access.

Other banks

Four other large US banks also stop external agents, Reuters reports. Fifth Third does not let agents start transactions.

Bill Demchak, CEO of PNC, tells that no bank will let agents make transactions without approval by a person.

What is not known

Anwar gave no date for open access. Anwar tells that banks do not know how fast agents will change or the things that they can do, and for which person. Axios reports, with sources that have no name, that some large banks find external agents in customer accounts.

Insight: Banks stop agents together and control the access

Large US banks stop external agents. The CEO of Schwab sees 10 to 20 stops each week for large agents. Economist Torsten Slok calculates that 3% interest on $1.6 trillion of deposits with no interest adds about $47 billion in cost a year for 3 banks. The stops seem to be for safety and also for low cost deposits, and the banks control the access. Monitor who sets the terms for access.