The growing legal cannabis market offers a unique opportunity for financial institutions to enter a new line of business, grow revenue, and improve customer engagement. However, as more states legalize adult-use cannabis programs, bankers can expect to see competition intensify. To secure a first-mover advantage, financial institutions should take steps now to learn about this industry, understand the operational impacts and compliance requirements, and develop the necessary expertise and customer relationships.
Further, in today’s rising rate environment, financial institutions across the country are taking a hard look at their balance sheets. Cannabis banking can help community banks find new growth with low-cost deposits, new lending opportunities, and non-interest income revenue streams.
To serve cannabis-related businesses compliantly, however, community banks must have a strong understanding of the risks and potential rewards of this line of business. This session will address the current economic and regulatory climate for cannabis banking and provide a roadmap and resources for community bankers interested in getting involved.
Discussion areas will include:
- The business case for cannabis banking, including the economic benefits of serving this line of business.
- Evaluating and managing BSA/AML risk.
- Engaging key stakeholders.
- Meeting examiner/regulatory expectations.