Robin Wiessmann, Pennsylvania secretary of banking and securities. Handout photo.

Pennsylvania regulators are cracking down on licensing for financial services and are sending a message to fintech companies operating in the state.

In an Oct. 6 letter, Pennsylvania Secretary of Banking and Securities Robin L. Wiessmann addressed companies and individuals that offer financial services, calling out financial technology companies, reminding them they too are required to be licensed by the Department of Banking and Securities in order to conduct business with Pennsylvania residents.

“The notion that a company labels itself as 'fintech' because of the means by which it offers or delivers a financial service does not alter the underlying nature of the transaction or service it is offering, whether it is lending or transmitting money, or some other regulated product or service,” Wiessmann wrote in the letter, noting that failure to comply can result in penalties.

Many fintechs, but not all, that operate in the state already have the proper licensing, but Wiessmann is trying to raise awareness for some startups that have yet to comply with state banking regulators, according to the department's spokesperson Ed Novak.

“We're not sure all of them are aware if they're providing financial services, no matter how cool the technology is or how innovative it is, it is still subject to regulation,” Novak said.

Novak said it is unknown how many fintech companies are operating without a license in Pennsylvania, but state regulators have received “some, but not many” complaints.

Wiessmann wants to make sure all fintechs are subject to the same oversight as the 200,000-plus licensees, charter institutions and registered professionals that provide financial services in the state, Novak said, “so there is a competitive playing field.”

“We're not trying to be a hurdle,” Novak said. “We're trying to be proactive so there aren't problems.”

Stephanie Forshee can be contacted at [email protected].