At the recent PA Bankers Day at the State Capitol, Secretary Wendy S. Spicher of the Pennsylvania Department of Banking and Securities shared critical updates that financial institutions across the Commonwealth should be watching closely. From reassessing state charter value to evolving consumer protection strategies, the Department is clearly focused on modernization, efficiency—and above all, impact.
Here’s what we’re watching:
Modernizing Assessments: A Decade in the Making
For the first time in ten years, the Department is reevaluating its annual assessments for banks, credit unions, and trust companies chartered in Pennsylvania. The move comes as the state charter has lost its competitive value relative to national options. The Department’s goal is to realign assessments with actual costs and improve efficiency in a post-pandemic regulatory landscape.
What’s changing?
- A simplified assessment model will be introduced:
- Banks and credit unions: Assessed based on total assets
- Trust companies: Assessed based on assets under management (AUM)
- Enhanced offsite and hybrid examinations have proven cost-effective, helping drive these changes.
- New assessments are expected to be 50–60% of the cost of federal assessments, making the PA charter more appealing.
Consumer Protection with a Focus on Access & Simplicity
A major area of focus for the Department is strengthening consumer protection while reducing complexity for the public. A newly streamlined intake system ensures that all consumer complaints—whether financial, insurance-related, or general—flow through a single point of contact:
- Hotline: 1-866-PACOMPLAINT
- Website: gov/consumer
- Email: consumer@pa.gov
This initiative supports a more unified and efficient way for Pennsylvanians to report issues and access support.
One area where this has real implications is Elder Financial Exploitation (EFE). Each year, EFE results in over $28.3 billion in losses nationwide, with an average of $39,395 per victim, according to national studies. Pennsylvania’s efforts to centralize consumer complaint reporting directly support early detection and faster intervention for these types of crimes—many of which go unreported due to shame, cognitive impairment, or victim reliance on the perpetrator.
EFE Prevention: A Call for Action
The Department’s focus on consumer safety aligns with national advocacy to combat EFE—an area where banks and credit unions can play a proactive role.
The 2018 Federal Senior Safe Act grants legal immunity to financial institutions that report suspected elder financial abuse, empowering trained staff to act quickly and protect clients. But more must be done.
Industry advocates, including the PA Bankers Association and credit union alliances, are urging lawmakers to support further legislation that would:
- Establish a clear legal framework for reporting suspected abuse
- Authorize communication with guardians, fiduciaries, or legal representatives
- Allow financial institutions to delay suspicious transactions to protect older adults
- Encourage voluntary provision of records to law enforcement for EFE investigations
These efforts are crucial as 1 in 5 seniors fall victim to EFE, and financial institutions are uniquely positioned to recognize the red flags.
Staying Ahead: Cyber Threats, Consolidation & Federal Developments
Through the examination process, the Department continues to see rising cybersecurity risks, particularly those enhanced by the increased use of AI. Industry consolidation also remains a trend. Commercial real estate portfolios remain stable, with no material deterioration reported.
Federally, the Department is closely watching developments around Stablecoin and the Genius Act, expressing concern about the absence of a consistent legal framework and the risks of treating these assets like traditional currency without clarity.
What Comes Next?
With assessment models evolving, consumer protection measures strengthening, and financial fraud under greater scrutiny, now is the time for institutions to ensure they are not only compliant—but forward-thinking. Whether it’s reexamining your institution’s charter strategy or enhancing your internal training around elder exploitation, these changes signal a larger shift: regulatory modernization in service of financial wellness and safety.
We’ll continue to monitor developments from the PA Department of Banking and Securities and across the regulatory landscape to keep you informed and prepared. If you need further guidance or have any questions, we are here to help. Please do not hesitate to reach out to discuss your specific situation.
This material has been prepared for general, informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Should you require any such advice, please contact us directly. The information contained herein does not create, and your review or use of the information does not constitute, an accountant-client relationship.
