State of Connecticut Department of Banking

Admin Report to the Governor 2025-2026

Administrative Report to the Governor
2025-2026

Department At A Glance:
Commissioner Jorge L. Perez

Established - 1837

Statutory Authority - Titles 36a, 36b and subsections (b), (d), (h) and (i) of Section 47a-21
Connecticut General Statutes, and Related Laws

Central Office - 
280 Trumbull Street, 16th Floor
Hartford, CT 06103-1800

Average number of full-time employees - 131 budgeted, 119 filled

Recurring operating expenses, 2025-2026 - $26,497,879 (actual)

Organization Structure:
  • Executive/Administration
  • Financial Institutions Division
  • Consumer Credit Division
  • Securities and Business Investments Division
  • Government Relations and Consumer Affairs
  • Business Office
  • DAS/Information Technology Services
  • DAS/Smart Unit (Human Resources services)
  • DAS Equal Employment Opportunity Unit
Agency Mission

The Department of Banking (DOB) is the primary state regulator for state-chartered banks, including innovation banks, and credit unions, securities, and consumer credit.  Its mission is to protect users of financial services from unlawful or improper practices by ensuring regulated entities and individuals adhere to state and federal banking, consumer credit and securities laws.  We accomplish this through regular, thorough, and cost-effective examinations of the entities we supervise.  The Department also engages the public and other stakeholders (including elected officials) through a variety of media platforms, educational outreach initiatives, and press communications.

Statutory Responsibility

The Department of Banking is responsible for the regulation and examination of financial institutions and various related entities who are, or are required to be, chartered, licensed or registered by the state. The Banking Commissioner is charged with administering the banking and credit union laws of the state as well as the laws regarding securities and business opportunities. The Banking Commissioner also administers the Truth-in-Lending Act and other consumer credit laws (mortgage, student loan servicers, consumer collection, money transmission, etc.) and a major portion of the law concerning rental security deposits.

The Department's customers include the general public, representatives of the public, regulated entities, researchers, and consultants. Connecticut residents benefit broadly from agency activities, which protect their funds in depository institutions, offer important investor and consumer protections, assist in dispute resolution, and provide helpful educational resources and information.

The Department engages with all levels of government, including the Governor’s Office, members of the General Assembly, other elected and appointed officials, federal, state and municipal government offices, the Department of Justice as well as with various other law enforcement agencies.  This is achieved largely through case referrals, regular meeting, proposed legislation, media events and educational outreach initiatives. 

The Department is comprised of the executive office, three operational divisions, two support units, and other partners through the Department of Administrative Services (DAS). Specific regulatory functions are assigned to each operational division within the Department.  In addition, the Department receives support from the DAS through its SmART Unit for Human Resource services; Equal Employment Opportunity/Affirmative Action Unit; and Bureau of Information Technology Solutions (BITS).

The Executive/Administrative Office provides overall supervision as well as strategic guidance for the agency. Comprised of the Commissioner, the Chief of Staff and General Counsel, the Office of the Student Loan Ombudsperson (until July 1, 2026), and the agency’s Hearing Officer and Freedom of Information Coordinator. With input from the other divisions, the Executive Office sets the vision and goals for the agency. 

In 2024, the Office of the Student Loan Ombudsperson was established, under the supervision of the Banking Commissioner, to serve as the state’s chief authority and specialist on all issues related to student loans.  The office is administratively held within the Department of Banking and is led by a Student Loan Ombudsperson who is appointed by the Banking Commissioner.  The Student Loan Ombudsperson has an independent statutory authority to analyze and monitor laws and policies that impact student loan borrowers at the federal, state, and local level, and to make recommendations. The Student Loan Ombudsperson works directly with loan borrowers to address complaints and help them navigate issues and identify resources.  During this reporting period, approximately 22 outreach events were conducted.

The Financial Institutions Division is responsible for the supervision of insured state-chartered bank and trust companies, savings banks, savings and loan associations and credit unions, in addition to innovation banks and trust banks. The Division also licenses foreign banking organizations that establish and maintain representative offices, agency offices and branch offices in Connecticut, and supervises bank holding companies.  It has responsibility for analyzing applications for new bank or credit union charters, acquisitions, mergers, conversions, branches, changes in corporate structure, and credit union field of membership expansions.  In addition, the Division licenses business and industrial development corporations (BIDCOs), international trade and investment corporations and certain non-banking corporations that exercise fiduciary powers.

The Consumer Credit Division is responsible for examination, enforcement, and licensing of mortgage lenders, brokers, servicers, lead generators of residential mortgage loans and loan originators; small loan companies (including earned wage access); sales finance companies; debt adjusters; debt negotiators; consumer collection agencies, including debt buyers; money transmitters; check cashing services; and student loan servicers.  The Division also registers federal student loan servicers; private education lenders and loan creditors; and commercial financing brokers and providers.  In addition, Consumer Credit also administers Truth-in-Lending laws and retail installment sales financing laws.

The Securities and Business Investments Division is responsible for registering securities and business opportunity offerings sold in or from Connecticut, registering (licensing) broker-dealers, agents, investment advisers and investment adviser agents who transact business in Connecticut and registering branch offices of broker-dealer and investment advisory firms. The Division also conducts examinations of broker-dealers, investment advisers and branch office registrants, and enforces the Connecticut Uniform Securities Act and the Connecticut Business Opportunity Investment Act.

Government Relations and Consumer Affairs assists consumers with issues involving financial services and products regulated by the Department and oversees the administration and enforcement of the rental security deposit laws.  The unit also directs the agency's legislative program, manages communications and media relations for the Department, coordinates financial and investor education outreach efforts and provides assistance to homeowners in foreclosure or in danger of foreclosure through the Foreclosure Assistance Hotline. 

The Business Office at the Department of Banking is a support unit for the agency. The Business Office is responsible for the accounting, budgeting, fiscal, purchasing and financial reporting functions for the Department. 

The DAS Small Agency Resource Team (DAS/SmART Unit) provides Human Resource support for the agency. This unit consolidates human resources and payroll personnel from multiple agencies into one unit and provides services to several departments throughout state government.  

The DAS Equal Employment Opportunity (EEO) Unit helps ensure that the agency complies with federal, state and local affirmative action and equal opportunity laws including serving as the Americans with Disabilities Act coordinator.  The EEO Unit also ensures compliance with the agency’s non-discrimination and anti-harassment policies and compiles the agency’s affirmative action plan which is made available through the Department’s intranet. The Department did not knowingly do business with any bidder, contractor, sub-contractor, supplier of materials, or licensee who discriminates against members of any class protected under Conn. Gen. Statutes Sec. 4a-60 or 4a-68. As a Department of the State of Connecticut, the agency adheres to the State’s requirement of being an equal opportunity employer.

Information technology support is provided to the Department of Banking through the DAS Bureau of Information Technology Solutions. 

Public Service

The Department of Banking is strongly committed to maintaining a standard of excellence in meeting its regulatory responsibilities while balancing strong consumer protections in a business-friendly environment.

To provide the public with convenient 24-hour, 7-day access to information on agency programs, licensing activity, and educational resources, the Department maintains its website, https://portal.ct.gov/dob, where consumers may send inquiries, file a complaint or conduct research using available data at any time.  During the 2025-2026 fiscal year, approximately 355,311 visitors viewed nearly 750,000 pages on the agency website. The rental security deposit page continues to be the most visited landing page throughout the entire site, with over 37,000 page views during the reporting period.

The Department updates and maintains information regarding licensees and registrants, as well as financial and industry information related to the financial institutions operating in Connecticut.  Relevant financial information is updated quarterly for banks and credit unions, in addition to providing the public with easy access to such public filings as the quarterly Call Report.  

The Department of Banking posts on its website administrative actions taken by the agency against various entities, subject to the jurisdiction of the Department, for a period of ten years. Visitors may also find indices to advisory opinions issued by the Commissioner concerning banks, credit unions, consumer credit, rental security deposits and securities and business opportunity matters.  

The Department prominently features on its website consumer alerts for the general public and industry. These alerts may come from other state or federal agencies or as a result of work done by the Department. These are designed to raise awareness of current trends and new frauds and scams that are relevant to Connecticut consumers and industry professionals. 

Each Division within the Department routinely collaborates with other law enforcement agencies such as the Federal Bureau of Investigation (FBI), the Connecticut State Police, local police department, and the U.S. Attorney’s office. 

A weekly News Bulletin provides information on applications before the agency, recent administrative orders and legal actions, and intended changes in regulations.  The Securities Division produces a quarterly Securities Bulletin advising the industry of new regulatory developments.  Both publications are emailed to thousands of people through Constant Contact, making it easier to view on mobile devices, and are posted to the agency website.

The Department utilizes social media as one of its tools in communicating with its stakeholders including consumers, investors, and industry professionals. Through its Facebook page (facebook.com/ctdob) the Department shares news and updates, as well as financial education information, to the general public and industry alike. 

Office of the Student Loan Ombudsperson (SLO)

The Student Loan Ombudsperson has independent oversight over student loan matters and advocacy for the rights of borrowers.  In this role, the Ombudsperson works with Government Relations and Consumer Affairs to review and attempt to resolve student loan borrower complaints, analyzes student loan borrower complaint data, assists borrowers in understanding their rights and responsibilities, and otherwise seeks to fulfill the duties set forth in General Statutes Section 36a-25.  

During fiscal year 2025-2026, the Student Loan Ombudsperson participated in approximately 22 outreach events, including a series of five webinars in partnership with the Student Debt Crisis Center.  Those events provided information on topics including repayment options, student loan debt forgiveness, and Parent PLUS loans, as well as updates on changes to federal student loans and the Saving on a Valuable Education (SAVE) plan.

In January 2026, the Office debuted an online appointment portal through which student and parent loan borrowers can request a dedicated appointment to ask general questions or request advice on student loan repayment and forgiveness options.  Appointments are available in fifteen- or thirty-minute increments via telephone or virtually.  Over 150 borrowers utilized the portal to schedule meetings with the Ombudsperson between January 2026 and June 2026.

The Office of the Student Loan Ombudsperson launched a free digital monthly newsletter, The Ombuds Observer, in July 2025, to keep the public informed on various student loan topics.  As of June 30, 2026, the publication had over 1,600 subscribers.

The Office of the Student Loan Ombudsperson continued providing timely student loan updates on its website pages. These pages provide up-to-date information on student and parent loans, including resources and how to file a complaint if the borrower experiences issues with their servicer.  

The Student Loan Ombudsperson engaged with federal partners and other state Ombudspersons during fiscal year 2025-2026. This outreach included collaborations with the legislative Banking Committee leadership, the Office of Higher Education, Office of the Attorney General, Department of Administrative Services, Department of Consumer Protection, and representatives from the Student Loan Fund. 

The Student Loan Ombudsperson joined the State & Federal Regulations Committee for the Connecticut Association of Professional Financial Aid Administrators (CAPFAA) which provides information to financial aid professionals across the state. The Ombudsperson was also invited to several radio shows within the state to discuss vital student loan topics. These networks included Public Affairs Face CT (96.5 TIC), The Lisa Wexler Show (WICC600/95.9), WAMC – Lucas Willard, and CT NPR.  She also appeared on WFSB twice to discuss student loan repayment issues.

Financial Institution Division (FID)

As of June 30, 2026, the Financial Institutions Division had regulatory oversight over twenty-four state-chartered domestic banks, two trust banks, two innovation banks, twenty-five credit unions, one international trade and investment corporation, two business and industrial development corporations (BIDCOs), three licensees that administer trust and/or special need services, as well as one branch office and one representative office of foreign banking organizations operating in the State.

During this fiscal year, the Department issued temporary certificates to organize one innovation bank – Fnality.  In addition to the traditional safety and soundness examinations conducted by FID, its regulatory obligations include multiple specialty examinations such as information technology, cybersecurity, Community Reinvestment Act, Truth-In-Lending Act, and Bank Secrecy Act.

During this fiscal year, the Banking Commissioner participated in a number of industry-related meetings with Chief Executive Officers (CEOs) of banks and credit unions, and other entities regulated by the Department. The Commissioner and other agency staff participated in a number of industry events sponsored by the Federal Deposit Insurance Corporation (FDIC), Connecticut Bankers Association (CBA), Connecticut Community Bankers Association, Connecticut’s Credit Unions (formerly the Credit Union League of Connecticut), Bank Compliance Association of Connecticut (BCAC), the Conference of State Bank Supervisors (CSBS) and the National Association of State Credit Union Supervisors (NASCUS).

A Financial Institutions Manager presented at State of the (Credit) Union 2025 in August 2025, hosted by Connecticut’s Credit Unions at their offices in Rocky Hill.  An FID Manager was a speaker at the 2026 Forum by Asurity, a risk and compliance conference held in April 2026, in New Orleans, LA, taking part in a panel, entitled, The State of The States: Diverging Paths in Financial Regulation.

The Department’s General Counsel was a featured speaker at the Connecticut Digital Banking Innovation Summit, "Reg-Tech" Edition, hosted by Bankwell Bank in January 2026 at Fairfield University’s Dolan School of Business. He took part in a panel, entitled Reg-Tech: Emerging Solutions and Policy Demands.

Consumer Credit Division (CC)

The Consumer Credit Division issues eighteen different license or registration types across several sectors of the non-depository financial services market.   As of June 30, 2026, overall, the Division licensed 3,990 companies and branch offices (including 830 mortgage companies) and 10,464 individuals. The Division approved nine bona fide nonprofit organizations.  Bona fide nonprofit organizations make residential mortgage loans that promote home ownership for the economically disadvantaged.

For fiscal year 2025-2026, the Division conducted forty-seven examinations of licensees and continued its enforcement efforts, including conducting investigations of companies engaged in unlicensed activity.  The Division issued thirty-seven actions, resulting in penalties of approximately $349,000.  In addition, Division efforts brought restitution to the public in excess of $3.2 million.  The Consumer Credit Division routinely cooperates with other law enforcement agencies, such as the U.S. Attorney’s office and the Federal Bureau of Investigation. 

In September 2025, the Department, as a result of an investigation completed by the Consumer Credit Division, issued a Consent Order resolving allegations against Coinme Inc., a licensed money transmitter, following a multistate examination covering February 2021–March 2023. Regulators had previously issued a temporary suspension and intent to revoke actions based on findings that Coinme engaged an unlicensed third party to perform money transmission functions, failed to maintain minimum tangible net worth, and lacked adequate compliance oversight.  Without admitting wrongdoing, Coinme agreed to comply with several conditions, including maintaining required net worth, improving compliance policies and supervisory controls, honoring any valid unredeemed vouchers, paying a $10,000 civil penalty, and providing restitution to impacted Connecticut consumers as identified by the Department.  As a result, Coinme provided restitution to four consumers in the amount of $70,452.

In December 2025, the Department issued a Consent Order against Castle Credit Co Holdings, LLC and Great American Finance Holdings, LLC for operating without required licenses, failing to cooperate with regulatory investigations, and attempting to improperly transfer licenses between entities. Both companies agreed to resolve the matter without admitting wrongdoing. Key requirements include ceasing unlicensed activity, improved cooperation with the Department, a joint $20,000 civil penalty, $3,200 in back licensing fees, and borrower reimbursements by Great American Finance. In this matter, restitution was provided by Great American Finance to twenty-three consumers in the amount of $11,299.23.

The Consumer Credit Division is part of the CSBS initiative to modernize the software of the Nationwide Multistate Licensing System & Registry (NMLS). NMLS 2.0 is designed to greatly increase efficiencies for both industry and regulators when licensing mortgage and non-mortgage individuals and entities. The State Examination System (SES) is an end-to-end examination management system that supports supervision, complaint, investigation, and enforcement activities for all non-depository financial entities, including but not limited to mortgage companies, money services businesses, consumer credit companies and debt collectors.

The Consumer Credit Division represents the Department as a member of the American Association of Residential Mortgage Regulators (AARMR), which provides opportunities for the Division to engage and work with other states to identify industry trends and best practices.  A Principal Financial Examiner in Consumer Credit serves bi-annually as the trainer for two-week CSBS Introduction to Mortgage Servicing Examinations training courses.  During the fiscal year he conducted virtual trainings in September 2025 and in June 2026.

Securities and Business Investments Division (SBID)

Throughout the year, the Securities Division conducted remote and on-site examinations of registered broker-dealers, registered investment advisers, and their offices (both main offices and branch offices).  One of the Securities Division’s goals was to examine in-state investment advisers falling within the agency’s jurisdiction once every three years.  More filers were able to make filings and remittances electronically and therefore speed up processing time.  The agency also continued to use its remote-hearing system, which supported continuity of operations during the agency’s relocation.

As of fiscal year-end, 1,918 broker-dealer firms and 401 investment advisory firms were registered in Connecticut, representing decreases of 1.1 percent and 4.3 percent, respectively, from June 30, 2025. The number of Securities and Exchange Commission (SEC)-registered investment advisers making a notice filing with the agency decreased slightly, from 2,680 to 2,677, or 0.1 percent. As of June 30, 2026, 223,869 broker-dealer agents employed by brokerage firms and 15,298 investment adviser agents associated with investment advisers were registered with the Securities Division. These figures represented fiscal year-end population increases of 5.0 percent for broker-dealer agents and 2.4 percent for investment adviser agents when compared with the preceding fiscal year-end. The number of in-state registered broker-dealer branch offices decreased by 0.6 percent, from 2,368 as of June 30, 2025, to 2,354 as of June 30, 2026.

The Division also investigates violations of the state’s securities and business opportunity laws, pursuing administrative, civil and criminal remedies where appropriate.  Many times, this involves interacting with other state securities regulators, the SEC, the U.S. Attorney’s Office, the Connecticut Attorney General’s Office, and other enforcement bodies to ensure that violators are brought to justice.

The Securities Division investigated several noteworthy matters during the fiscal year.  The first occurred on October 8, 2025, when the Banking Commissioner entered a Consent Order (No. CO-25-202525-S) with respect to Edward D. Jones & Co., L.P., a Connecticut-registered broker-dealer. The Consent Order followed a multistate investigation led by the North American Securities Administrators Association, Inc. that uncovered evidence that the firm charged minimum fixed commissions on certain small principal equity transactions. The investigation found that the firm charged a minimum commission of $50 on certain transactions, resulting in commissions that exceeded 5 percent of the principal trade amount. From May 1, 2020, through April 30, 2025, the firm executed 5,278 affected equity transactions in Connecticut involving $72,702.37 in commissions. The Consent Order alleged that the firm failed to adequately supervise transactions in which the minimum equity commission exceeded 5 percent, in violation of Section 36b-31-6f(b) of the Regulations under the Connecticut Uniform Securities Act. The Consent Order fined the firm $100,000 and required it to pay $72,702.37 in restitution to affected Connecticut investors within 180 days. The firm was also required to certify that it had revised its compliance and operational systems to identify and review potentially excessive commissions.

The second action involved a Consent Order (No. CO-25-202523-S), dated November 12, 2025, with TD Ameritrade, Inc., a previously registered broker-dealer. The Consent Order was an outgrowth of a multistate investigation into the firm’s assessment of commissions exceeding 5 percent on certain small principal equity transactions conducted from approximately June 30, 2018, through June 30, 2023. The Consent Order alleged that the firm executed 797 affected equity transactions in Connecticut, resulting in unreasonable commissions totaling $10,880.42. It also alleged that the firm failed to adequately supervise transactions subject to its minimum equity commission, in violation of Section 36b-31-6f(b) of the Regulations under the Connecticut Uniform Securities Act. The Consent Order censured the firm, fined it $15,000, and required it to pay $10,880.42 in restitution, plus interest, to affected Connecticut customers. The firm was also required to report to the Commissioner concerning the completion of its restitution payments.

The third action occurred on November 18, 2025, when the Banking Commissioner entered a Consent Order (No. CO-25-202524-S) with respect to Stifel, Nicolaus & Company, Inc., a Connecticut-registered broker-dealer. The Consent Order followed a multistate investigation into the firm’s assessment of unreasonable commissions on certain equity transactions. From May 1, 2020, through April 30, 2025, the firm executed 547 affected equity transactions in Connecticut, resulting in commissions exceeding 5 percent of the principal trade amount and totaling $10,832.43. The Consent Order alleged that the firm failed to implement adequate supervisory procedures to ensure that inappropriate commissions were not assessed, in violation of Section 36b-31-6f(b) of the Regulations under the Connecticut Uniform Securities Act. The Consent Order directed the firm to cease and desist from regulatory violations and fined it $20,000. It also required the firm to provide affected Connecticut customers with $10,832.43 in restitution, plus interest, and to report to the Commissioner concerning the progress of its restitution undertaking.

All told, intervention by the SBID during the fiscal year resulted in restitution and rescission offers to the investing public totaling $193,709. The Division also imposed $219,525 in fines for violations of the state’s securities and business opportunity laws.

The Securities Division continued its enforcement efforts in responding to securities complaints from the Connecticut investing public.  Investigations focused on schemes involving digital asset and cryptocurrency products; the misappropriation or conversion of investor funds; fraudulent sales of securities to Connecticut residents at unrealistic rates of return; dishonest or unethical practices by investment advisers; sales of securities by unlicensed firms and individuals; elder fraud; and brokerage firm supervisory lapses.  The Division worked closely with securities regulators in other states as well as federal law enforcement authorities in pursuing many of these investigations.

During fiscal year 2025-2026, the SBID continued to evaluate its regulatory policies and rules to ensure they remained responsive to changes in the financial marketplace and the needs of the investing public. This work included consideration of emerging technologies, such as artificial intelligence and blockchain, and their use by both the agency and the securities industry.

In October 2025, the Program Manager of innovation & Strategy and a Securities Division Financial Examiner joined the Banking Commissioner at a Bank Management class at Central Connecticut State University. The Securities Division was actively involved in the agency’s educational outreach program (described more fully below) providing presentations regarding investor fraud, abusive sales practices and cryptocurrency.

Government Relations and Consumer Affairs (GRCA)

The Government Relations and Consumer Affairs unit manages the external affairs for the Department of Banking through its consumer affairs team, its legislative efforts, and its communications and educational outreach programs.

Consumer Affairs

As part of the Department’s efforts to protect Connecticut consumers, the consumer affairs unit assists with consumer complaints and dispute resolution in their transactions with entities regulated by the Department. Consumers are encouraged to contact the Department of Banking whenever they need assistance in dealing with financial entities. Agency employees promptly assist consumers with issues involving the financial services industry in Connecticut, those residents who might be facing foreclosure, and tenants involved with issues regarding their rental security deposits.

During the fiscal year 2025-2026, GRCA’s consumer affairs unit – excluding the Foreclosure Hotline and rental security deposit complaints – responded to 2,708 telephone inquiries and 1,090 written complaints from the public and answered 201 chatbot email inquiries during that time period.  As a result of their efforts, GRCA obtained approximately $371,890 in adjustments and reimbursements on behalf of consumers during the period. Consumer Affairs also refers consumers to federal and state regulatory agencies for complaints outside the jurisdiction of the Department, including the Consumer Financial Protection Bureau (CFPB), the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC) and other state agencies as appropriate. 

The Foreclosure Assistance Hotline has continued to be a valuable resource for Connecticut residents.  Callers to the toll-free number receive pertinent advice and guidance regarding their mortgage problems.  During the 2025-2026 fiscal year, the Hotline assisted 491 individual consumers.

The agency received 681 telephone calls and 253 written complaints for rental security deposit issues in the fiscal year.  The consumer affairs unit recovered approximately $15,534 for Connecticut residents who had complained to the Department that landlords had unjustly withheld their refundable rental security deposits.

GRCA staff uses the eLicense system to process, track and manage written complaints to the Department. This system has completely digitized the unit’s workflow and has allowed the possibility of remote work.

In 2024, the Department launched Robin, an artificially intelligent chatbot with pre-determined responses to assist in supporting website visitors. It automatically answers common questions and provides links for additional information.  The Department of Administrative Services worked to develop the chatbot as a product designed to enhance the digital experience for citizens by providing assistance and guidance throughout their interactions with the government.  During the 2025-2026 fiscal year, approximately 1,900 visitors to the agency website started 40,886 chatbot sessions on a range of financial service topics.

Legislative Update

During the 2026 legislative session, the Connecticut General Assembly enacted several measures affecting the Department of Banking, reflecting ongoing priorities in consumer protection, data security, financial oversight, and modernization of regulatory processes. Collectively, these actions strengthen safeguards for residents, refine state oversight of financial institutions, and adjust departmental responsibilities in key policy areas.

Major legislative developments include new data security standards requiring banks, credit unions, and DOB licensed entities to implement written information security programs and to promptly report incidents that may compromise operations or customer information. The session also established a Fraud Working Group to broaden interagency coordination and enhance strategies to address consumer fraud. Additional consumer focused measures refine flood insurance notice requirements and strengthen protections around rental security deposit violations.

The legislature approved the transfer of the Student Loan Ombudsman function from the Department of Banking to the Office of Higher Education, including the reassignment of staff. 

Although the DOB retains no direct regulatory change from newly authorized state virtual currency investments, the Department provided input on improving investor safeguards within the framework and this change may impact entities we regulate.

Other enactments affecting DOB operations include the planning of an AI regulatory sandbox with multi agency participation; updates to the Community Bank and Credit Union Initiative; requirements for mortgage servicers to accept voluntary principal prepayments; streamlined branch application approval timelines; and expanded criteria for Community Reinvestment Act (CRA) evaluations, particularly in support of products that help residents build or strengthen credit histories.

The legislature also modernized unclaimed property standards to more precisely define what constitutes owner interest and activity and created a working group to study consumer protections for prepaid funeral service contracts, with the Banking Commissioner or his designee serving as a member. Statutory adjustments to various state ethics thresholds were enacted as well.

Overall, the 2026 session yielded statutory changes that directly and indirectly influence the Department’s regulatory environment. While not all provisions alter DOB authority, many carry supervisory, operational, or interagency implications. The Department will continue integrating these changes into guidance, examinations, and long term planning to ensure effective oversight and protection for Connecticut consumers and financial institutions.

Educational Outreach

The primary focus of the Department’s educational outreach program is to help Connecticut's consumers and investors make informed financial decisions and to protect their money from fraud and scams.  Through GRCA, the agency publishes consumer alerts and information on known frauds and scams.  Agency staff provide vital information to consumers through speaking engagements, presentations, seminars, and expos, and are often called upon to share their expertise in helping consumers and investors of all ages learn about and avoid financial fraud.

During the 2025-2026 fiscal year, agency staff participated in approximately 80 outreach programs, consisting primarily of in-person presentations and programs.  The agency’s two educational outreach coordinators continued to offer both virtual and in-person engagements to a variety of audiences, including older adults, high school and college students, and industry professionals, on topics ranging from banking scams, fraud, exploitation, and identity theft, to credit and debt management and cybersecurity.

The key to the success of the outreach program at the Department is building relationships and developing partnerships.  Through the outreach program, we utilize partnerships with state, federal and community organizations to empower residents with the knowledge to protect their finances.  Department staff are often called upon to share their expertise in helping consumers and investors learn about and avoid financial fraud, and these collaborations were evident throughout this fiscal year.

Libraries have consistently provided the Department of Banking with opportunities to share our expertise and resources with the general public.  The outreach coordinators provided both in-person and virtual programs for libraries in towns including Bloomfield, Bolton, Ellington, Farmington, Salisbury, Southington, and Terryville during the fiscal year on issues such as protecting your personal information online, avoiding banking scams and fraud, and identity theft.  An attorney in our Consumer Credit Division provided a virtual lunch and learn for a library in Glastonbury in October 2025 on the topic of cryptocurrency.

The agency’s educational outreach coordinators continued to work with Town Clerks across the state to provide financial education to couples seeking marriage licenses, representing the Department of Banking at their bi-annual conferences by hosting an agency table to distribute copies of Marriage & Money: Starting Your Financial Life Together.  During the 2025-2026 fiscal year, over 8,500 copies of the financial guide were distributed to Town Clerks at their Fall and Spring conferences, who in turn provide the booklet to couples obtaining their marriage license.

Conferences and expos provide agency staff opportunities to meet directly with the public and share resources and promotional materials with Connecticut consumers and investors.  The educational outreach coordinators represented the Department at numerous events during the fiscal year 2025-2026, including the UConn Work/Life Expo in Storrs, senior fairs at the Shelton Senior Center, the Woodbridge Senior Center, and Masonicare in Shelton, the TEARS™ 2026 elder abuse conference in West Haven, and a vendor showcase hosted by the Connecticut Association of Resident Service Coordinators in Housing in West Hartford.  In January 2026, the GRCA Director and the Student Loan Ombudsperson shared a resource table at an Executive Branch Orientation at the State Capitol and met with state legislators and legislative staff.

The Department’s Financial Fraud Bingo program is one of the most requested outreach programs offered for seniors.  This program has shown to be a fun, interactive way to educate the community about banking scams and fraud prevention. During the 2025-2026 fiscal year, the agency’s outreach coordinators presented 15 Financial Fraud Bingo programs for residents in housing communities and at senior centers across the state, including Bridgeport, Bristol, Hartford, Middlebury, Middletown, Stamford, Vernon, Waterbury, Weston, and Wolcott.  New Opportunities hosted several programs at housing communities in Waterbury, and a special program was hosted by Members Credit Union at their Stamford location, which was translated into Spanish.

The Department of Banking continues to pursue opportunities to collaborate with higher education to conduct outreach with college students.  Commissioner Perez continued his partnership with Central Connecticut State University by offering his expertise as a guest speaker at a Bank Management class in both the Spring and Fall semesters.

Building off the success of the Financial Fraud Bingo program, an outreach coordinator created Money Bingo to teach money management and financial literacy topics for students.  This was used for the first time in October 2025 for students at CT State-Manchester in their TRIO Student Support Services program, who are the first in their families to go to college, are low-income, and may have a disability.

A collaboration with the University of New Haven (UNH) provided several more opportunities during the 2025-2026 fiscal year to conduct outreach programs for college students through its Cashparency financial wellness series.  In October 2025, one of the agency’s outreach coordinators conducted a virtual program on establishing and maintaining good credit.  In March 2026, the agency’s Securities Director provided a webinar on Investing 101, followed by a Modern Investing webinar in April 2026.  An outreach coordinator and the Student Loan Ombudsperson participated at a Life After College financial wellness fair at UNH in April 2026 for its graduating seniors.

Throughout the year the agency participated in two panels at the University of Hartford. The agency’s General Counsel shared his expertise with students at Fairfield University’s Dolan School of Business at the 2026 Connecticut Digital Banking Innovation Summit, "Reg-Tech" Edition, hosted by Bankwell Bank in January 2026.

The Department provides financial education programming for high school students to encourage them to focus on their finances and money management.  In March 2026, an outreach coordinator was invited to be a guest speaker for Bristol Youth Services.  She joined a young men’s weekly meeting to speak on cyberfraud and online safety.

Agency staff participated at several Financial Reality Fairs during fiscal year 2025-2026.  These events bring hundreds of high school students together to participate in an interactive simulation designed to help them experience real-life financial decision-making.  In March 2026, the educational outreach coordinators took part in an event at CT State–Gateway in New Haven.  In May, they participated at a Financial Reality Fair at Stamford High School, hosted by Members Credit Union.  The Student Loan Ombudsperson also met with students and shared resources at this event.

Additional collaborations with credit unions provided outreach opportunities during 2025-2026.  In addition to the Financial Fraud Bingo program hosted by Members Credit Union in October 2025, an educational outreach coordinator participated at a fraud event hosted by American Eagle Financial Credit Union in East Hartford in November 2025 and gave a presentation on scams and fraud at FD Credit Union in Waterbury.  In May 2026, the outreach coordinator was the guest speaker for a program at the Meriden Library hosted by Ellafi Credit Union, entitled Protect Yourself from Financial Fraud.

Coalitions

The agency, through its educational outreach coordinators, remains active on several state coalitions, including Connecticut Saves, the Coalition for Elder Justice in Connecticut, and the Connecticut Jump$tart Coalition for Personal Financial Literacy.  The Department is also a member of the Governor’s Council on Women and Girls and Bank On CT.

The Coalition for Elder Justice in Connecticut (CEJC) is a multidisciplinary group of private and public stakeholders working together to prevent elder abuse and protect the rights, independence, security, and well-being of vulnerable seniors in Connecticut.  The Department of Banking, through its outreach coordinator, regularly participates in CECJ meetings and activities throughout the year.  On June 15, 2026, the agency’s outreach coordinators hosted a resource table at World Elder Abuse Awareness Day: Protecting Older Adults, a half-day event hosted by the CEJC and held at the Quinnipiac University School of Law in North Haven.

The Connecticut Jump$tart Coalition for Personal Financial Literacy is the state affiliate of the national Jump$tart Coalition.  Its mission is to educate young people about personal financial management and responsibility.  In October 2025, an outreach coordinator served on a panel of experts at the Connecticut Jump$tart Coalition’s Financial Literacy Summit in Rocky Hill, an annual conference for high school teachers.  The topic was Fraud Proofing the Future: What Teens Need to Know.

The Connecticut Saves Coalition is the state campaign of America Saves, a national campaign that encourages individuals and families to save money, reduce debt, build wealth, and create better financial habits.  To recognize America Saves Week 2026, an educational outreach coordinator, along with the Student Loan Ombudsperson, participated at Life After College: A Financial Wellness Fair for Seniors at the University of New Haven.

The Governor’s Council on Women and Girls is a group tasked with providing a coordinated state response to issues that impact the lives of women, girls, their families, and the State of Connecticut.  Commissioner Perez is a member of the Council and is active on its Economic Opportunity & Workforce Equity Subcommittee.  The agency’s outreach coordinator continues to help update the state’s financial literacy portal.

The Department is also a member of Bank On CT, a program led by Advancing Connecticut Together (formerly the Connecticut Association of Human Services) and designed to connect unbanked and underbanked communities with safe and affordable bank accounts. Bank On CT works with banks and credit unions to offer banking products and services to Connecticut communities in need.

Through its finial literacy initiative, the Department has supported outreach by funding grant opportunities with partner organizations, such as LISC (Local Initiatives Support Corporation), United Way of Southeastern Connecticut, and The Village for Families & Children.  More information on this is found under our “Financial Literacy Initiative” subsection below.

Improvements/Achievements 2025-2026

On November 24, 2025, the Department of Banking relocated its offices from 260 Constitution Plaza, Hartford, CT to 280 Trumbull Street, Hartford, CT.  The new space was selected through a public and competitive Request for Proposal (RFP) process led by DAS closely following approved State guidelines, with net savings of approximately $50,000 per year.  The Department had been located at Constitution Plaza since 1995.  The Department’s move represents a transition to an office that better meets the needs of a modern workforce while remaining part of the Hartford community. The new space is designed to strengthen collaboration within the Department while continuing to serve Connecticut residents and provide common-sense regulation.

The Department held two agency-wide staff meetings during the fiscal year, on December 4, 2025, and on June 4, 2026.  These in-person events provide the opportunity for Commissioner Perez to address employees as a group in order to provide updates and other agency items, discuss projects, and take questions from staff.  Division representatives shared industry and legislative updates, guest speakers presented professional development programs on topics including financial technology and artificial intelligence, and the agency’s Morale Committee led the staff in team-building challenges.

Strategic Plan

The Commissioner, along with the chief of staff and division directors, have developed a detailed strategic plan providing overall vision for the agency. Highlights included staff development and succession planning, policy and operational objectives as well as creating economic growth for the state.  During the fiscal year 2025-2026, agency leadership revisited the 5-year strategic plan to mark progress toward its goals and updated it as necessary.

Opportunity Plan

During 2025-2026, the Department participated in the State’s new Opportunity Plan initiative by developing and implementing its first agency-specific plan. The Department adapted the statewide framework to its role as a financial regulator and organized five priorities through three lenses: a non-traditional service provider, an employer of choice, and a growth partner. The priorities focused on consumer financial education, regulatory modernization, digital literacy and emerging technology, employee training, and Innovation Bank growth. Progress was tracked throughout the fiscal year using defined targets and performance measures. By fiscal year-end, the Department met all five priorities, with three surpassing their established goals.  This is described more fully in the next section of this report.

Innovation and Financial Technology Committee (formerly the Department Cryptocurrency Committee)

The Department of Banking’s Innovation and Financial Technology Committee, made up of members from across the agency, met regularly to address educational, legislative, regulatory, and operational developments involving financial technology and emerging technologies. During the fiscal year, the committee was renamed and placed under the leadership of the Program Manager of Innovation and Strategy. Its membership was expanded to support broader participation and expertise across the Department.

The committee continued to support the Department’s efforts involving cybersecurity, digital assets, blockchain technology, artificial intelligence, and other emerging technology topics affecting financial regulation. Members shared information concerning federal and state developments, Department initiatives, supervisory tools, training programs, and industry trends. The committee also discussed the Department’s use of technology and analytical tools to support financial tracing, blockchain analysis, document review, cybersecurity oversight, and regulatory examinations.

The committee continued to monitor legislative and regulatory developments involving digital assets and financial technology. Its work included reviewing federal market structure proposals, developments affecting state regulatory and enforcement authority, and emerging issues involving stablecoins, decentralized finance, prediction markets, artificial intelligence, and data security. Members also shared updates from national regulatory organizations and considered how new technologies could affect examinations, enforcement, consumer protection, and the institutions regulated by the Department.

The Innovation and Financial Technology Education Subcommittee continued to identify and share training resources involving cybersecurity, digital assets, artificial intelligence, blockchain technology, and other financial technology topics. During the fiscal year, the Subcommittee developed The Digital Ledger, a new Department newsletter designed to explain emerging technology issues in plain language and share information with Department staff, consumers, and regulated entities. The newsletter will also provide information concerning Department initiatives, fraud prevention, complaint resources, licensing information, and other developments involving innovation and financial technology.

The Department’s General Counsel was a featured speaker at the Connecticut Digital Banking Innovation Summit, "Reg-Tech" Edition, hosted by Bankwell Bank in January 2026 at Fairfield University’s Dolan School of Business. He took part in a panel, entitled Reg-Tech: Emerging Solutions and Policy Demands.

Digital Assets Advisory Group

The Department of Banking’s Digital Assets Advisory Group (DAAG) was established to provide nonbinding input, feedback, assistance, research, analysis, recommendations, and expertise to the Commissioner and Department staff, including with respect to evolving opportunities and challenges relating to digital assets. The goal is to consider and draft potential digital asset legislation and otherwise implement policies designed to (1) protect consumers and investors, (2) support responsible financial services innovation in the State, and (3) foster economic development.  The 22 members of the DAAG are individuals with professional expertise relating to digital assets, including bankers, attorneys, accountants, consultants, professors, state police detectives, and consumer advocates.  The Department hosted in-person meetings in September 2025 and February 2026 and discussed the federal GENIUS Act and other topics related to payment stablecoins, tokenized deposits, and cryptocurrency.

Financial Literacy Initiative

At times as part of settlements, the Department of Banking receives monies to be used for investor education, staff training and educational material.  Commissioner Perez established a working group to develop a plan to partner with third-party vendors to provide educational programs that meet certain objectives, namely 1) to provide personal finance tools that will prepare residents for a financially successful future, with an emphasis on women and young girls and 2) to teach how to make smart money management decisions that will enable them to be independent and financially secure.  After issuing a Request for Proposal (RFP) utilizing the state’s eProcurement system, the committee recommended several entities for the Commissioner’s consideration to receive funding for financial literacy education.  

In March 2024, Commissioner Perez joined Governor Lamont and Lt. Governor Bysiewicz to announce the release of three state grants totaling more than $400,000 that are being used to support programs focused on improving the financial wellness of Connecticut residents with a priority focus on women and girls.  The monies under the grant were ultimately issued to recipients late in 2024, and those organizations provided progress reports to the Department in early 2025.

Senior Financial Exploitation Training

The Department offers training to financial professionals who work with seniors to identify and report signs of fraud and exploitation through its Senior$afe™ program. In June 2026, the agency's outreach coordinator partnered with the manager of the Department of Social Services Protective Services for the Elderly Division to provide training for Connecticut’s Credit Unions (formerly the Credit Union League of Connecticut) at their offices in Rocky Hill.  Representatives of both state and federal credit unions attended and learned the red flags of financial fraud and exploitation, and the benefits of making reports to Protective Services.

Community Event in New Haven for College Bound Students

The Department helped organize an event on November 19, 2025, at the Dixwell Community House (Q House) in New Haven that focused on helping high school students learn ways to help pay for college.  An educational outreach coordinator staffed a resource table at the event, shared resources, and met one-on-one with students and their parents.

Divisions

The Financial Institutions Division (FID) remains committed to continuing its communication with industry representatives.  At the conclusion of every examination FID staff meet with the bank’s or credit union’s board of directors. Examiners conducted a mix of virtual and in-person meetings during the year.  The institutions are also given the opportunity to provide feedback directly to the Banking Commissioner by completing a two-page post-examination survey.  Institutions are given the opportunity via the survey to comment on staff performance, examination efficiency, and examination time demands in an effort to improve future examinations.

The FID staff remain active members of both the CSBS and NASCUS.  Financial Institutions Division staff also serve on a variety of committees, actively participate in webinars and conference calls, and assist in the development of regulatory and best practice standards.

The Department hosted its annual Credit Union CEO Roundtable meeting on October 1, 2025, which included representatives from the credit union industry and Connecticut’s Credit Unions (formerly the Credit Union League of Connecticut).  The session included a discussion of regulatory and industry issues impacting the credit union industry and provided an opportunity for credit union managers to highlight new initiatives and achievements.

The Department also hosted its annual Bank CEO Roundtable meeting on October 29, 2025, which included representatives from the banking industry and the Connecticut Bankers Association.  The sessions included a discussion of regulatory and industry issues impacting the banking industry and provided an opportunity for bank CEOs to highlight new initiatives and achievements.

Several FID employees attended trainings hosted by the FDIC, NASCUS, and CSBS.  For the first time, two FID employees attended the Money Transmitter Regulators Association (MTRA) Annual Conference in Louisville, KY, in September 2025. The conference afforded them the opportunity to network with other regulators and industry, and included topics such as virtual currency kiosks, stablecoin, risk management, and information regarding the Money Transmission Modernization Act (MTMA).

The FID Director, Senior Assistant Division Director, and Assistant Division Director attended the NASCUS State System Summit in San Antonio, TX, from September 17-19, 2025. This event brings together state regulators, credit union leaders, and industry stakeholders in an immersive, collaborative networking environment.

In February 2026, two Financial Institutions División managers joined Commissioner Perez at the 2026 CT Bankers Forum, hosted by the Connecticut Bankers Association, and spoke on regulatory priorities affecting the banking industry.

A manager in FID was a guest speaker at the Asurity Forum in New Orleans in April 2026.  The forum convened leaders shaping fair lending, risk and regulatory strategy.  Compliance executives, fintech innovators, law firms and lenders came together to exchange insight, challenge assumptions and defined what responsible innovation looks like in practice.   

The Consumer Credit Division (Consumer Credit) maintained steady involvement in several working groups with members from multiple states in the areas of mortgage, consumer finance, debt, and money services business. The working groups provide forums for discussion and feedback toward national reform within the entire consumer credit space. Division staff continued to conduct multi-state coordinated examinations of our licensed entities.

Consumer Credit continues to fill several key roles in the Nationwide Multistate Licensing System & Registry (NMLS) initiative to create “One System of Supervision,” and continues its role on the steering committee to enhance the State Examination System (SES) for examinations of all license types. Several Examiners continued to play active roles in both projects by providing necessary feedback to the developers and collaborating with other states on system processes.  While NMLS 2.0 is still in the development phase, SES is now in production and is being utilized in our state as planned.

A Principal Financial Examiner in the Consumer Credit Division was the virtual trainer for two-week CSBS Introduction to Mortgage Servicing Examinations training courses in September 2025 and in June 2026.

Consumer Credit continues to participate in One Company, One Exam (OCOE) examinations in the Mortgage and Money Services Business area on an ongoing basis. 

The Securities and Business Investments Division (SBID) continued its active participation in the North American Securities Administrators Association, Inc. (NASAA). Organized in 1919 and dedicated to investor protection, NASAA is a voluntary association whose membership consists of state, provincial, and territorial securities administrators in the United States, Canada, and Mexico. During the fiscal year, SBID staff served on NASAA committees and project groups dedicated to cybersecurity, distributed ledger technology, federal regulation, examination training and support, broker-dealer training, investment adviser resources and training, and enforcement training.

During the fiscal year, Securities Division staff expanded their participation in national and state-level regulatory committees. Staff participated in a NASAA policy committee that reviewed proposed federal legislation and developed comments, proposed revisions, and advocacy positions for consideration at the national level. Securities personnel also expanded their participation in the Conference of State Bank Supervisors (CSBS) through service on the CSBS Information Technology Advisory Committee. Division staff were also asked to participate in the CSBS Information Technology and Cyber Examination Modernization Working Group, which is actively working to modernize Information Technology (IT) examination processes and standards. In addition, the Department is represented on the Connecticut State Artificial Intelligence Advisory Group by a member of the Securities Division.

The Securities Division continued to achieve greater efficiency through its use of the Electronic Filing Depository (EFD) for certain private placement filings and unit investment trust filings. Developed by NASAA, the online EFD platform allows securities issuers to make filings simultaneously in multiple states and permits members of the public to conduct free online searches of filings made through the system. The Securities Division continued to work with NASAA on efforts to expand the EFD platform to cover additional filing types.

The Business Office fulfilled its fiduciary responsibility by expeditiously handling total receipts of $52,953,776 through its accounting, budgeting, purchasing and financial reporting functions.  Of this total, the Business Office directed $44,816,449 to the Banking Fund and $8,051,827 to the General Fund.  The Director of the Business Office serves as one of the Department’s LEAN Coordinators and helps guide agency staff through the LEAN process. The Department has achieved the goal of significantly decreasing paper record volumes and increasing the use of electronic records. The Department has identified SharePoint as the new document management system to be implemented. Document management continues to be the current LEAN initiative for the Department.

Committees

Dixwell Community House (Q House)

Commissioner Perez continues to serve on the advisory board of the Dixwell Community House (Q House). He was appointed by the Mayor of the City of New Haven representing a person with a financial background.  Commissioner Perez, along with other advisory board members, provides strategic leadership and guidance to the core anchor institution in the Dixwell/Newhallville sections of New Haven. As chair of the Board’s finance committee, he provides experienced and prudent financial oversight, ensuring its ability to continue to provide services to the community.   

New Haven Works

As a founding member and Chairman of the Board, Commissioner Perez represents Governor Lamont on the New Haven Works Board of Directors.  New Haven Works is a workforce development organization that seeks to build a middle class in an urban center and improve economic stability in all communities by providing employers with a trained and qualified workforce and connecting New Haven residents to good jobs. 

Commissioner Pérez engages with industry professionals by collaborating on initiatives and serving on the following committees and boards:

  • Member and Past Chair, Conference of State Bank Supervisors (CSBS) District 1
  • Board Member at-large, CSBS
  • Board of Directors, Cornell Scott-Hill Health Center Foundation
  • Member of the CSBS Finance Committee
  • Past Member of the CSBS Non-Depository Supervisory Committee (NDSC)
  • Committee member of the NASCUS Audit Committee, former Chairman
  • Voting Ex officio Member of the Connecticut Housing Finance Authority Board of Directors
  • Ex officio Member of the Connecticut Retirement Security Authority Board
  • Member of the Community Economic Development Fund Foundation Board of Directors
  • Member of the State of Connecticut Department of Emergency Services and Public Protection (DESPP) Cybersecurity Committee
  • Member of the Governor’s Council on Women and Girls
  • Member of the Hispanic Merchants Outreach/Meet the Bankers Committee
  • Chair of the New Haven Works Board of Directors
  • Member of the Dixwell Community House (Q House) Finance and Fund Development Committee

Agency staff served in the following leadership roles during the fiscal year, including:  

  • Co-Chair of the NASAA Broker-Dealer Training Project Group
  • Co-Chair of the NASAA NEMO Training and Support Committee
  • Senior Sustainability Officer (SSO) in compliance with the Governor’s Executive Order No. 1 regarding Sustainability in the State of Connecticut
  • Member of the AARMR Education Committee
  • Member of the American Bar Association State Regulation of Securities Committee
  • Member of Bank On Connecticut
  • Member of the Coalition for Elder Justice in Connecticut Coordinating Council
  • Member of the Connecticut Association of Professional Financial Aid Administrators (CAPFAA) State & Federal Regulations Committee
  • Member of the Connecticut Jump$tart Coalition for Personal Financial Literacy
  • Member of the Connecticut Management Advisory Council (MAC) serving as a Management Representative for the Department of Banking 
  • Member of the Connecticut State AI Advisory Group
  • Member(s) of the CSBS District I Committee
  • Member of the CSBS IT Advisory Committee
  • Member of the CSBS IT and Cyber Exam Modernization Working Group
  • Member of the CSBS Mortgage Exam Standards Working Group 
  • Member of the CSBS Prudential Standards Implementation Working Group
  • Member of the CSBS SES Agency Advisory Group
  • Member of the NASAA Broker-Dealer Investigations and Compliance Project Group
  • Member of the NASAA Cybersecurity Committee
  • Member of the NASAA Distributed Ledger Technology Steering Committee
  • Member of the NASAA Enforcement Training Project Group
  • Member of the NASAA Investment Adviser Cybersecurity and Technology Project Group
  • Member of the NASAA Investment Adviser Training Project Group
  • Member of the NASAA Investor Education Life Stages Outreach Project Group
  • Member of the NASAA Policy Committee
  • Member of the NASAA Professional Development Committee
  • Member of the NASCUS Interstate Branching/Operations Task Force
  • Member of the NASCUS Examiner Training Working Group
  • Member of the State Student Loan Working Group
  • Member of the UCONN Fintech Advisory Board

  

Agency Opportunity Plan 2026-2027: Year 1 Results

Overview

During fiscal year 2025-2026, the Department developed and implemented its first agency-specific Opportunity Plan. The statewide framework was adapted to reflect the Department’s role as a financial regulator and organized through three lenses: 

  1. A non-traditional service provider
  2. An employer of choice
  3. Growth partner. 

Five priorities addressed:

  1. Consumer financial education
  2. Regulatory modernization
  3. Digital literacy
  4. Employee training
  5. Innovation Bank growth.

By fiscal year-end, the Department achieved the Year 1 target for all five priorities, with three surpassing their established goals. 

Service Provider

Priority 1: Consumer Financial Education Outreach and Engagement
Status: Surpassed

Challenge

Connecticut residents continue to experience financial harm from scams, phishing, elder financial abuse, and other fraudulent activity. In 2024, residents reported $143.9 million in losses through 5,695 complaints to the FBI’s Internet Crime Complaint Center. Residents age 60 and older accounted for $30.9 million of those losses.

Priority

The Department focused on providing practical financial education to consumers who may be more exposed to fraud or abusive financial practices. Outreach emphasized seniors, limited-English-speaking households, low-income residents, student loan borrowers, and other vulnerable consumers.

Baseline and Success Indicator

The baseline was approximately 75 annual outreach events. The Year 1 goal was to maintain that pace, with an aspirational target of 80 events. The Department completed more than 80 events and surpassed both measures.

Key Actions Taken

  • Delivered community events, bilingual workshops, and financial empowerment programs. 
  • Expanded partnerships with nonprofit organizations, educational institutions, regulated entities, and community groups. 
  • Used complaint and outreach trends to focus education on fraud prevention, elder financial abuse, and emerging financial risks. 

Impact

  • Reached at least 1,700 additional residents through partner programming. 
  • Helped consumers identify scams, understand financial risks, and locate Department resources. 
  • Provided outreach, education, coaching referrals, and related support at no cost to residents. 

These partnerships extended the Department’s reach into communities where trusted financial guidance can reduce harm and improve consumer confidence. 

Priority 2: Modernizing Statutory and Regulatory Frameworks
Status: Surpassed

Challenge

Financial products and technologies continue to evolve, creating new risks and questions that may not be fully addressed by existing law. Consumers, regulated entities, and policymakers need clear standards that keep pace with the market while maintaining strong protections.

Priority 

This priority focused on making Connecticut’s statutory and regulatory framework clearer, easier to navigate, and more responsive to developments in digital assets, artificial intelligence, payment innovation, and financial technology.

Baseline and Success Indicator

The Year 1 goal was to continue research and legislative recommendations through the Digital Assets Regulatory Project. The Department also set an aspirational goal of convening the inaugural Digital Assets Advisory Group. Both objectives were achieved, and the advisory group met twice during the fiscal year.

Key Actions Taken

  • Established the Digital Assets Advisory Group as a forum for consumer advocates, industry representatives, regulators, and policymakers. 
  • Reviewed existing laws and researched state and federal developments affecting digital finance. 
  • Prepared draft legislative concepts addressing stablecoins, digital trust banks, virtual currency kiosks, and other digital asset activities. 
  • Developed draft guidance on digital assets and artificial intelligence. 

Impact

The Department created a more organized process for reviewing emerging financial issues and incorporating stakeholder input. The work also produced draft legal frameworks and strengthened the Department’s legislative pipeline. Through the advisory group and related guidance, complex regulatory issues are becoming easier for stakeholders to understand and discuss. 

Priority 3: Digital Literacy, Cybersecurity, and Emerging Technology Engagement
Status: Completed

Challenge

Cybersecurity incidents, artificial intelligence, digital assets, and other emerging technologies continue to create new risks for financial institutions and their customers. Regulated entities receive information from many sources, but they also need practical guidance on how these developments relate to Connecticut’s regulatory expectations.

Priority 

The Department worked to strengthen its internal expertise and establish a more consistent process for addressing emerging technology risks. The priority also supported the development of practical information for regulated entities and consumers.

Baseline and Success Indicator

This was a new initiative. At the start of the planned period, the Department relied mainly on external resources and general supervisory practices. The Year 1 goal was to develop and publish, or otherwise advance for review, one formal guidance document on cybersecurity or emerging technology.

Key Actions Taken

  • Drafted artificial intelligence guidance and shared it with industry stakeholders for review. 
  • Began revising the guidance based on stakeholder feedback. 
  • Used SecurityScorecard to support awareness of cyber-risk indicators. 
  • Participated in the Conference of State Bank Supervisors’ effort to modernize information technology examinations. 

Impact

The Department established a repeatable process for emerging technology engagement, advanced artificial intelligence guidance, and expanded the cyber-risk information available for supervisory use. Its participation in a national examination modernization effort also allows Connecticut to learn from peer regulators and contribute to stronger supervisory practices. 

Employer of Choice

Priority 4: Cybersecurity and Emerging Technology Training
Status: Surpassed

Challenge

Financial institutions are increasingly using artificial intelligence, digital assets, cybersecurity tools, and new technology-driven business models. Department employees need current knowledge and practical training to supervise these activities effectively.

Priority 

The Department developed a structured training program to build employee expertise, support professional growth, and reduce reliance on isolated areas of individual knowledge.

Baseline and Success Indicator

This was a new initiative with a baseline of zero. The Year 1 target was for 100 percent of financial examiners to complete Phase I of the Cybersecurity and Fintech Training Program. The Department achieved full completion and expanded the program beyond the original target.

Key Actions Taken

  • Delivered foundational and specialized instruction, including Blockchain 101 and Blockchain 201. 
  • Provided access to university-developed courses on cybersecurity, artificial intelligence, and machine learning in finance. 
  • Supported professional certification coursework and tracked completion through a required training process. 

Impact

  • Achieved 100 percent financial examiner completion of Phase I. 
  • Expanded staff knowledge of cybersecurity, digital assets, fintech, stablecoins, and emerging business models. 
  • Created a training structure that can be repeated and expanded in future years. 

Partnerships with Connecticut universities, the Conference of State Bank Supervisors, the SANS Institute, the Cybersecurity and Infrastructure Security Agency, and other experts made it possible to provide specialized training at a broader scale. 

Growth Partner

Priority 5: Innovation Bank Growth
Status: Completed

Challenge

Emerging financial institutions need a clear and supervised path to enter the Connecticut market. The State also has an opportunity to attract responsible financial technology companies while maintaining safety, soundness, and consumer protection.

Priority 

The Department worked to expand the Innovation Bank Charter framework through structured onboarding and proportionate supervision. This approach supports responsible innovation, economic development, and a more competitive financial services sector.

Baseline and Success Indicator

The original plan baseline was two chartered Innovation Banks. At the start of fiscal year 2025-2026, Fnality and Moneycorp were also progressing through the organization process under temporary certificates of authority. The Year 1 goal was to maintain the existing banks or advance an additional institution through the charter process. The Department achieved the goal.

Key Actions Taken

  • Maintained supervision of the two existing Innovation Banks. 
  • Continued the organization and onboarding of Fnality Bank US following the issuance of its temporary certificate of authority in April 2025, and extended Moneycorp Bank US’s temporary certificate during the reporting period.
  • Refined onboarding procedures and expanded discussions with prospective applicants. 
  • Coordinated with the Department of Economic and Community Development and industry stakeholders, including Visa and MasterCard. 

Impact

Connecticut moved from a pause in new bank formation to an active Innovation Bank pipeline. The Department maintained oversight of existing institutions while advancing additional applicants and making the charter process easier to understand. This work strengthened Connecticut’s position as a jurisdiction that supports responsible financial innovation under clear regulatory oversight.