As California continues to impose strict regulations on businesses, many companies have moved to Texas, strengthening Texas’ position as America’s new financial capital.
In a meeting in Houston on Friday, Secretary of the Treasury Scott Bessent spoke on the contrast between California and Texas.
“In California, I saw firsthand what years of failed governance looks like: a tax system that is hostile to ambition. A regulatory state that smothers enterprise. An economic climate indifferent to consequence,” said Bessent according to Fox News Digital. “Here in Texas, meanwhile, the contrast is so striking that it begins to feel like a tale of two states.”
Since 2018, 725 companies have moved to Texas, including behemoths such as Hewlett-Packard, Charles Schwab, and Chevrolet, underscoring the state’s business-friendly appeal.
Texas is currently the fastest-growing state in terms of GDP and is set to surpass California by 2036.
Gov. Greg Abbott celebrated the creation of 132,500 jobs between December 2024 and December 2025 as the state reached a new high, with the largest labor force in its history.
The influx of large businesses migrating to Texas has also increased demand on local financial institutions to meet growing levels of commerce.
“Our banking sector’s strength and depth is a true differentiator not seen in other states or other countries. America is choosing Texas. The world is choosing Texas,” said Texas Bankers Association CEO Chris Furlow.
However, as companies continue to innovate in Texas, state banks face a unique set of challenges.
In a meeting on Friday with Bessent, Stellar Bank CEO Ramon Vitulli stated that they have seen a “40% increase in fraud cases over the last 12 to 18 months.”
The methods by which scammers access vital financial information have become increasingly sophisticated, including the employment of AI. AI-enhanced tactics “mimic the voice of a customer to get a [bank] to do things that are harmful,” said Vitulli.
Texas is set to become home to hundreds of AI data centers.
