RBC Blocks Third-Party AI Agents From Accessing Online Banking Over Security Concerns
Royal Bank of Canada has blocked third-party personal AI agents from accessing its digital properties, including online banking, citing unacceptable customer risk. The move follows similar restrictions by U.S. banks JPMorgan Chase and Charles Schwab.
Royal Bank of Canada (RBC) is blocking third-party personal artificial intelligence agents from directly accessing the bank’s digital properties, including online banking. The decision follows a security review of AI technology conducted by the institution.
In an internal memo, RBC head of technology and operations Naim Kazmi and head of personal banking Erica Nielsen stated that third-party AI agents create unacceptable customer risk. The restriction limits customers' ability to use external AI tools for analyzing spending patterns and making recommendations via their bank accounts, a move that may disappoint clients who rely on such services.
RBC is not alone in tightening controls around AI access. U.S.-based banks JPMorgan Chase & Co. and Charles Schwab Corp. recently announced they are blocking or limiting outside AI agents’ access to customers’ data. In Canada, Bank of Montreal CEO Darryl White said at an event last week that customers should not share sensitive banking data with AI agents.
Regulators are increasing scrutiny of AI practices at large lenders but are favoring principles-based regulation rather than prescriptive bans. Office of the Superintendent of Financial Institutions (OSFI) superintendent Peter Routledge said he would leave the decision on AI agents up to individual banks as long as they follow regulator guidelines. Routledge's seven-year term as head of OSFI ends in June 2028 unless he is reappointed.
Despite restricting external AI agents, RBC remains a significant adopter of the technology internally. According to a report by Evident, RBC ranked third globally for AI adoption for the fifth consecutive year.