Copy
DECEMBER 2020
Shield Compliance Logo
Schedule Demo
Lending:The New Frontier in Cannabis Banking
While most bankers initially entered the cannabis market to generate new sources of low-cost deposits and non-interest fee income, many have since discovered that the compliance and due diligence processes implemented on the deposit side can be leveraged to mitigate credit risk.
 
Shield recently sat down with Deirdra O'Gorman, CEO of DX Consulting and Empyreal Logistics, and an expert on banking and compliance for highly regulated industries, to seek her perspective on the cannabis lending opportunity. Read more ...
The Votes are In! 
Cannabis was a clear winner in the November general election. With strong majority support for ballot initiatives legalizing recreational cannabis in Arizona, Montana, New Jersey, and South Dakota, 15 states will now have adult-use programs. Mississippi and South Dakota also passed medical legalization measures bringing the number of states with some form of legal marijuana to 35.
 
We are also following developments in Congress related to federal recognition of state marijuana laws. Industry advocates are certainly bullish about what a Biden administration would mean for marijuana reform. And, even if Republicans are to maintain control of the Senate, the likely incoming chair of the Senate banking committee, Pennsylvania Republican Pat Toomey, appears to be open to legislation that would allow financial institutions to serve cannabis businesses without fear of federal reprisal. As he said in a recent interview with Politico,
Five new legal states are projected to add nine billion dollars in revenue between 2022 and 2025, according to New Frontier Data. That would make the U.S. legal cannabis market worth $33 billion, up from New Frontier’s earlier estimate of $24 billion by that time.
 
“I am sympathetic to the idea that people who are involved in [the] cannabis industry—in an entirely legal fashion, in the state in which they operate—ought to be able to have ordinary banking services. That's my starting point, and then there's a lot of details to work out, but I am open to that.”

- Pat Toomey, U.S. Senator (R-Pennsylvania)
Shield In the News
Shield enables financial institutions across the country to deliver robust, compliant, and cost-effective cannabis banking programs. Read about how some of our partners are adopting Shield platform technologies.
“Our goal is to increase our sales trajectory while limiting the amount of staff that we need to add to run the program. The opportunity to gain efficiencies that allow us to scale our program while delivering a consistent, reliable experience to our members and new applicants is what drew us to Shield Compliance and is the biggest value-add in our relationship.”

- Brett Ballman, Vice President and Director of
Business Services, Salal Credit Union
Upcoming
We look forward to joining banking leaders and state regulators at “Cannabis Banking – Looking Ahead to 2021,” hosted by California Community Banking Network on December 9.

Click here for the agenda and to register.
Shield Compliance is transforming the way financial institutions manage risk, comply with regulations, and satisfy operational demands associated with serving the legal cannabis industry. Shield’s technology sits behind the financial institution, powering its compliance and risk management operations in the background. This approach enables financial institutions to grow their portfolios and gain an early-mover advantage on new relationships and the added revenue from these customers while protecting themselves from the risk associated with banking this industry. 
Follow Us on Linkedin Follow Us on Linkedin
Now Hiring - View Current Opportunities Now Hiring - View Current Opportunities
Copyright © 2020 Shield Compliance, All rights reserved.


Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list.