As regulations and attitudes toward cannabis evolve, financial institutions (FIs) must understand the needs and concerns of cannabis operators to serve them effectively while meeting regulatory requirements, the expectations of their boards, and the demands of their balance sheets.
"Adoption of technology that integrates data can streamline the compliance burden for financial institutions while creating a consistent, dependable experience for operators," said Tony Repanich, President and CEO of Shield Compliance. "Fortunately, a playbook is available to help bankers make decisions about serving this industry, create a compliant operational structure, and gain the financial rewards of this market."
This year's survey was split 60/40 between wholesale and retail license holders, with most (80%) stating their FI understood the nature of their business. That said, operators rated their FI's understanding of the cannabis industry at only 63%, a decline from prior years. Expertise is desired, which presents a clear opportunity for FIs to enhance their understanding and better serve their clients.
"The cannabis industry is experiencing strong and steady growth; however, we continue to see a need for comprehensive training and certification to address the knowledge gap expressed by licensed operators," said Erin O'Donnell, co-founder of the American Cannabis Bankers Association. "These findings underscore the opportunity for FIs to create deeper customer relationships and gain an even greater competitive advantage as competition intensifies in the years ahead."
Source: shieldbanking.com