JPMorgan Deposits Unfazed by Meta's Muse AI Agent

Investors in JPMorgan lost more than 3% of their shares at the start of September due to concerns that Meta's Muse AI agent could pull deposits into higher-yielding accounts.

Muse, a personal AI assistant launched on September 8, quickly rose to become the top free app in the US. Its potential to sweep idle cash out of low-yield checking accounts and into more lucrative options sent shockwaves through the financial sector.

JPMorgan's total deposits reached $2.71 trillion at the end of June, up about 5.9% from a year earlier, while quarterly interest expense rose just 0.3% to $25.11 billion.

However, BofA analyst Ebrahim Poonawala offered a clear test: until deposit costs rise faster than can be explained by rates or competition, the disruption thesis remains conceptual.