3 Questions with Cami Cantrell
It is essential for business bankers to provide holistic financial solutions to their clientele. Simply providing basic depository services to cannabis-related businesses (CRBs) is somewhat a niche now, but banks and credit unions can future-proof their relationships and scale their programs by providing additional services. As Cami Cantrell explains, Shield can help financial institutions create new growth and revenue opportunities within and beyond the cannabis industry.
1. How can financial institutions support CRBs beyond providing banking services?
Shield offers strategic referral partnerships to help financial institutions expand their services to include payroll, payments, and other fee-based services. For example, Shield recently introduced a referral program to provide payroll, benefits, HR, and insurance to CRBs. Through Shield's referral relationship, bankers can generate recurring revenue while introducing their cannabis clients to a value-added service that can simplify their back-office operations.
Cannabis bankers can likewise create new revenue streams by referring their clients to payment providers offering non-cash payment options for the retail environment. Through Shield's partnerships, bankers can introduce their clients to compliant payment solutions. Bankers taking advantage of these referrals earn recurring fee income while proactively reducing the number of cash transactions taking place today.
2. Speaking of payments, what are some of the issues you're tracking in this area?
We continue to see increasing concern from bankers and regulators related to the use of cashless ATMs, including a letter issued late last year by Visa to its acquiring banks warning of the use of a pseudo-ATM transaction code for point-of-sale card purchases and reiterating its position that the practice does not conform with its operating regulations. In light of this, we know operators are exploring other options, from ACH wallet solutions to debit processing, to non-card credit options like buy now, pay later.
3. What are other ways cannabis bankers can expand their service offerings?
Some bankers are reaching non-depository cannabis customers by lending outside of their existing cannabis banking program, particularly in commercial real estate secured loans. Others are looking at opportunities to support cannabis-focused fintech companies as a sponsor bank for ACH wallet or other electronic payment mechanisms, or as lenders behind a buy now, pay later product.
Many of the qualities that make for a successful cannabis banking program are also aligned with other high-risk industries. Financial institutions serving the cannabis industry have established that a heightened level of risk is acceptable if properly mitigated with a strong compliance program. That risk tolerance and service structure can be leveraged among other industries underserved by traditional banking programs, opening entirely new business opportunities.
Learn more about Shield's Cannabis Banking Solution ›
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