You Shouldn't Overstate AI's Threat to Bank Profits

All year, AI enthusiasm has had an evil twin: fear for industries AI will allegedly disrupt. This spring, those fears hit software-as-a-service stocks—the “SAAS-pocalypse.” Then they bounced and the world moved on. Now there is a new target: Banks. Global Banks fell into a mini-correction since mid-August, and many see AI as the culprit. Supposedly, normal folks will soon use AI agents to move their savings to the highest-yielding option. Painless and profitable for people, bad for banks—eroding their cheap funding base. Sounds like SAAS-pocalypse 2.0 to us, and it ignores Bank stocks’ robust fundamentals. Read Full Article »