With Great Risk Comes Great Responsibility (and Reward)!
Author: Brooke Ferris, CAMS-Audit
The purpose of this paper is to offer an alternative source of revenue for financial institutions that is not currently affected by interest rates or consumer protection legislation, by suggesting financial institutions offer banking services to marijuana dispensaries. In the current economy, banks’ revenue has been significantly impacted by the interest rate environment and consumer protection legislation. In an effort to reduce costs, financial institutions have shifted their focus to risk avoidance by exiting high-risk customers or turning away new business deemed high risk. However, financial institutions are spending a substantial amount of their resources ensuring those customers are not banking with them. Research shows the states that have legalized recreational marijuana have seen a significant amount of tax revenue. The states are getting their share of the untapped source of revenue produced by marijuana dispensaries, so should the banks not collect their share?