Texas fintech guide
Building a fintech company in Texas
Austin has become one of the busiest places in the country to start a technology company. A fintech is a technology company with one extra dependency: the regulators. This guide covers what Texas founders need to know before the product touches anyone's money.
Money transmission
When holding or moving customer funds needs a Texas Department of Banking license, and what applying involves.
Licensing guide →Lending licenses
OCCC, SML and the federal rules: which regulator oversees which kind of loan.
Lending guide →Compliance checklist
AML, sanctions, privacy, breach notification, card data and bank-partner diligence.
Open the checklist →Payment rails
ACH, cards, wires, RTP and FedNow: speed, cost, and who can pull money back.
How money moves →The questions to answer before you build
- Do you ever hold or control customer money? If funds pass through your company, even briefly, you may be a money transmitter under Texas law and federal rules. The answer shapes your architecture, not just your paperwork.
- Do you make, arrange or service loans? Consumer lending in Texas is licensed by product type, and the license you need depends on the loan's rate, size and security.
- Who is your bank? Many fintechs operate through a partner bank. The bank's own regulators then expect it to supervise you, and your compliance program becomes part of theirs.
- What personal data do you hold? Financial data carries federal privacy rules, and Texas has its own privacy and breach notification laws.
- Which payment rails do you depend on? Each rail has its own rules, settlement times and reversal rights, and each shapes your fraud exposure.
The Texas regulators you are most likely to meet
| Regulator | What it oversees |
|---|---|
| Texas Department of Banking | State banks, and money services businesses (money transmission and currency exchange) |
| Office of Consumer Credit Commissioner (OCCC) | Consumer and regulated lenders, credit access businesses, pawnshops and more |
| Texas Department of Savings and Mortgage Lending | Residential mortgage companies and loan originators |
| Texas State Securities Board | Securities offerings, dealers and investment advisers |
| Texas Attorney General | Consumer protection and data-breach notifications |
Federal agencies sit alongside them, above all FinCEN for anti-money-laundering rules, the CFPB for consumer financial products, and the federal banking regulators who supervise your partner bank.
Not legal advice. Whether a license applies turns on the exact facts of your product. Use these guides to ask better questions, then confirm the answers with the regulator or with counsel before launch.