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The financial sector faces emerging headwinds as the AI 'scare trade' finally hits banking stocks, with investor attention turning to the long-term sustainability of deposit-gathering advantages that banks have enjoyed under the higher-interest-rate regime. Investors have reaped outsized banking profits from consumers' reluctance to move money out of low-interest checking accounts that offer convenience and ready access, but this advantage faces potential erosion if macro conditions shift or if AI-driven financial innovation disrupts traditional banking customer relationships. Value investors and 'bargain hunters' are viewing the current weakness as a potential opportunity, suggesting that some see oversold valuations in the sector despite underlying operational pressures. The dynamic reflects broader uncertainty about how long banks can sustain deposit-gathering advantages in an era of higher rates and accelerating AI-driven fintech competition.