Texas Department of Banking

What Texas Department of Banking does

The Texas Department of Banking is a Texas state government regulatory agency established in 1905, headquartered in Austin, with four regional offices in Dallas/Fort Worth, Houston, Lubbock, and San Antonio, and 251-500 employees. Operating under the oversight of the Texas Finance Commission, it charters, licenses, and supervises state-chartered banks, trust companies, money services businesses, perpetual care cemeteries, prepaid funeral contract sellers, check verification companies, and foreign bank agencies operating in Texas. Its core activities include safety-and-soundness examinations, AML/CFT compliance oversight, cybersecurity incident reporting (via the FLEX portal and Zix secure email), consumer complaint resolution, financial education, and enforcement actions including consent orders against violators. The agency has pursued an active enforcement agenda in the digital-asset and money services sectors, with numerous consent orders against cryptocurrency exchanges, stablecoin operators, and unlicensed money transmitters.

The agency is funded through annual assessments levied on regulated entities (state-chartered banks, trust companies, MSBs, perpetual care cemeteries, prepaid funeral contract sellers) supplemented by Texas legislative appropriations; it does not charge customers for regulatory services and is not commercially revenue-generating. Notable technology and operational infrastructure includes the FLEX (Files Loans and Examinations Exchange) portal for secure document submission and the Zix secure email system, supported by a specialized workforce of bank examiners, trust examiners, IT security examiners, and capital markets specialists organized under the Bank and Trust Supervision and Non-Depository Supervision divisions. The agency has earned repeated CSBS accreditations for bank and MSB supervision (7th bank and 2nd MSB accreditation in 2025; first MSB accreditation in 2020), reflecting peer-validated examiner quality.

The agency's go-to-market is regulatory rather than commercial: it engages regulated entities through scheduled examinations, special investigations, and ongoing supervisory oversight, and engages the public through consumer complaint resolution, consumer alerts, press releases, industry notices, legislative testimony, and the annual Eleventh District Banking Conference co-hosted with the Federal Reserve Bank of Dallas. Its customer base is the population of Texas-chartered financial institutions and Texas consumers of financial services, with no commercial customer acquisition motion. The Department has executed an aggressive enforcement posture in the digital-asset sector, including a joint $80 million multi-state enforcement action against Block, Inc. (January 2025) and a joint consent order with the Colorado Division of Banking against Ramad Pay, Inc. (June 2026, $200,000 penalty), alongside numerous enforcement actions against unlicensed virtual currency kiosk operators.

Name

Texas Department of Banking

Legal name

Texas Department of Banking

Website

https://dob.texas.gov

Company type

Private

Founded year

1905

Operating status

Operating

Headcount range

101–250 employees

Short description

The Texas Department of Banking is a Texas state regulatory agency that charters, licenses, and supervises state-chartered banks, trust companies, money services businesses, perpetual care cemeteries, prepaid funeral contract sellers, and check verification companies operating in Texas, headquartered in Austin with four regional offices.

Ownership category

akta.pro rank

Product category

State Banking Regulation

NAICS

Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors (92615)

SIC

State Commercial Banks (6022)

akta.pro primary industry

Financial Services Regulators (Banking, Securities, Insurance) (BPAIAOAK)

akta.pro secondary industries

Business Registration & Corporate Affairs (Registries) (BPAIAOAA), Financial Crime Compliance Program Management (Policies, Controls, Training) (FSAMAMAH), Case Management, Investigations & SAR/STR Filing (FSAMAMAF)

Keywords

• Banking regulation
• Financial institution supervision
• Money services licensing
• Consumer protection
• Regulatory examinations

Headquarters

HQ city

Austin

HQ country

United States

HQ region

North America

Offices5 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Infrastructure, Marketing or Sales

Revenue model

1. Regulatory Assessments and Fees: As a state government agency, the Texas Department of Banking is funded through annual assessments levied on regulated entities it supervises, including state-chartered banks, trust companies, money services businesses, perpetual care cemeteries, and prepaid funeral contract sellers. The agency also receives appropriations from the Texas state legislature.

Go-to-market motion1 record

Distribution channels4 records

Marketing channels7 records

Core offering

The Texas Department of Banking is the state regulatory agency that charters, licenses, and supervises Texas-chartered banks, trust companies, money services businesses, perpetual care cemeteries, prepaid funeral contract sellers, check verification entities, and foreign bank agencies/representative offices. It conducts safety-and-soundness and compliance examinations, processes applications and statutory filings, enforces AML/CFT and cybersecurity requirements, resolves consumer complaints, and provides financial education and regulatory guidance.

Product overview

The Texas Department of Banking is a state regulatory agency, not a commercial product company. Its core functions are regulatory oversight and supervision of financial services entities in Texas. The agency offers regulatory services including Bank and Trust Supervision (chartering, licensing, examining state-chartered banks and trust companies), Non-Depository Supervision (oversight of money services businesses and death care industries), and Consumer Assistance (dispute resolution and financial education). Supporting infrastructure includes the FLEX (Files Loans and Examinations Exchange Portal) for secure document submission and a Cybersecurity Incident Reporting system for regulated entities to report security events.

Differentiator

Problem solved

Functional benefit

Products and services

• Bank and Trust Supervision Chartering, licensing, and supervision of state-chartered banks, trust companies, and foreign bank agencies/representative offices operating in Texas. Includes periodic examinations for safety, soundness, BSA/AML, and IT security compliance with state and federal laws.
• Non-Depository Supervision Licensing and oversight of money services businesses (currency exchange, money transmission, payment instruments), prepaid funeral contract sellers, and perpetual care cemeteries under Texas Finance Code.
• Consumer Assistance Resolution of consumer disputes with regulated entities, public complaint intake, and delivery of financial-education resources (e.g., FINED webinars) to Texas consumers.
• FLEX (Files Loans and Examinations Exchange) Portal Secure portal enabling regulated banks, trust companies, and MSBs to submit cybersecurity incident reports, examination documents, and confidential correspondence to the Department.
• Corporate Activities Processing Processing of charter/branch/merger applications, statutory filings, and corporate decisions for financial institutions seeking to conduct business in Texas, supported by a team of Corporate Analysts and a Senior Corporate Analyst.
• Cybersecurity Incident Reporting Designated channel by which regulated banks, trust companies, and MSBs report material computer-security incidents to the Banking Commissioner within required timeframes, processed through the FLEX portal and the IT Security Examinations team.

Quantifiable outcome

• Over 100 years of continuous service to Texas citizens since establishment in 1905

Named customers6 records

Segments7 records

Ideal customer profiles5 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

One partnership is on record.

• Federal Reserve Bank of DallasnotableStrategic or Co-development Partner · 23 February 2026The Texas Department of Banking partners with the Federal Reserve Bank of Dallas to host the annual Eleventh District Banking Conference. This collaboration brings together banking professionals, regulators, and industry experts to discuss emerging trends, regulatory developments, and challenges in the banking sector.

Scale indicators3 records

Recent moves17 records

Expansion highlights5 records

Others

• Financial Crimes Enforcement Network (FinCEN): The federal BSA/AML administrator that money services businesses regulated by the Texas Department of Banking report to. Comparable as a partner in the AML/CFT compliance ecosystem, including joint enforcement actions referenced in the Texas Department of Banking's recent enforcement record.
• Conference of State Bank Supervisors (CSBS): The national association of state banking regulators that accredits and coordinates state bank and MSB supervisors, including the Texas Department of Banking (which has received CSBS Bank and MSB accreditations). Comparable as the umbrella body that sets supervisory standards and accreditation criteria for the Texas Department of Banking's operations.
• Federal Reserve Bank of Dallas: A formal strategic partner of the Texas Department of Banking, co-hosting the annual Eleventh District Banking Conference and collaborating on regional banking supervision. Comparable as a parallel banking-industry convener and a federal supervisory counterpart within the same Eleventh Federal Reserve District.

Direct peers

• Colorado Division of Banking: A peer state banking regulator that jointly issued the June 2026 consent order against Ramad Pay with the Texas Department of Banking. Comparable in mandate, scale, and active AML/CFT enforcement posture toward money services businesses operating across multiple states.
• California Department of Financial Protection and Innovation: California's state financial regulator overseeing banks, credit unions, money transmitters, and fintech lenders under the California Financial Code. Direct peer to the Texas Department of Banking in chartering, licensing, and supervising a parallel mix of state-chartered banks and money services businesses, including crypto and digital-asset activity.
• Florida Office of Financial Regulation: Florida's primary state regulator for state-chartered banks, trust companies, and money services businesses. Directly comparable to the Texas Department of Banking in mandate, assessment-funded structure, and mix of bank and MSB supervision across a large and diverse state economy.
• Illinois Department of Financial and Professional Regulation: Illinois's state financial regulator overseeing state-chartered banks, mortgage lenders, and money transmitters. Directly comparable to the Texas Department of Banking in supervising a similar portfolio of depository and non-depository financial institutions under state statute.
• Georgia Department of Banking and Finance: Georgia's state regulator of banks, mortgage lenders, and money services businesses. Direct peer to the Texas Department of Banking in chartering, licensing, and supervisory functions, with a similar mix of bank and non-depository supervision responsibilities.

Broad incumbents

• Office of the Comptroller of the Currency (OCC): The federal agency that charters and supervises national banks and federal savings associations. Comparable to the Texas Department of Banking as the alternative supervisory regime for community and regional banks; ongoing national-to-state conversions indicate direct competitive overlap for Texas banking charter business.
• New York State Department of Financial Services: A larger state financial regulator with broader remit covering banking, insurance, and fintech, and an active crypto and AML/CFT enforcement program. Comparable to the Texas Department of Banking as a peer state supervisor of state-chartered banks, money services businesses, and emerging fintech firms.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat3 records

Key risks6 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/texas-department-of-banking

Revenue estimate

Valuation estimate

Number of profiles

Profiles12 records

Funding overview

Funding rounds

Investors

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M&A

Investments

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Frequently asked questions about Texas Department of Banking