Has Cannabis Banking Arrived?

With over 18 banks you would think that we have a lead on the banking in the industry? Yes at HARDCAR we have been very fortunate to have been partnered with over 10 really successful banks like Partners Federal Credit Union and North Bay Credit Union. Others like Technicolor have moved forward with more services and the industry has been expanding quickly. Now the on boarding process for banks is taking less than 3 months. That is serious progress when it took 9 months before.

What we see are fraudulent firms who overcharge cannabis companies and that frustrates us as we try to promote real banking. Custodial accounts are not real bank accounts for one. Second - companies promoting a "system" are mostly a joke. They offer limited if any protection for customers. If you don't know what they are or how they would effect your business see here - https://www.investopedia.com/terms/c/custodialaccount.asp

In my humble opinion what is needed in cannabis is a system where people can gain access to the banks after they have already been approved to work within a framework that allows for compliant business in any legal state in the US. Let me explain to those of you who have never had to apply for a cannabis license.

From the start - no one will trust you. The state you are applying to - will subject you to scrutiny you have never seen before. Then the city will take offense if you don't use the right type of fence or camera with recordings that last say 90 days. So the rules are just ludicrous. We were in a small city where the police chief and town council thought it would be smart to record everything for hours on end with security patrols 24/7. Now this would be relevant if this was a maximum security prison. Alas - I was never able to convince the small provincial city that those measures were over kill. We did however convince them that a roaming drone would be better than having a security guard stand out in the 125 degree heat. (??? why that made sense yet cameras recording things no person would ever look at made sense?) That was an advancement. Yet - this still exists in multiple cities across the US. This is a major issue with huge misconceptions. YES crime is a big issue in and industry with the margins that are in cannabis. YES there are some really bad people around industries like this. We are not blind to those things - we were the first company to deploy a fresh frozen armored truck. (If you have no idea what fresh frozen is - you will miss that) So we believe the industry has shifted yet the banks still fail to see this coming. Why?

We believe the banks that are the most progressive will see this and jump on. Currently we have been working with banks that are fully compliant with all federal regulations and currently banking cannabis companies so has the banking industry come to terms with this? NO - the banks we are working with are still taking risks but they are the tip of the sword in an industry where risk takers win. Some win big and others lose - the question is - will you be part of this?

Our belief is that the banking industry will figure it out way too late. The other solutions coming online will surpass banks and flood the market with real financial tools. This sounds cryptic and it should we have been working with groups to facilitate transactions of all levels for companies in our space out of sheer frustration. There has been times where we couldn't make payments because we were shut down from a bank. Yes we have all suffered that nonsense if you have been in this industry. More importantly now that we have friendly banks we welcome companies to come to us and embrace legal banking the way it should be. Conversely we challenge companies all the time to try and prove to us that the solution they are presenting works in our space.

We recorded over 56 events last year where companies came to us with another "solution" to banking. What I have always said is - if you do not have a bank involved at some level with oversight you will never get that program to survive. I stick by that today. Most cannabis companies are so desperate to get accounts they will jump into crazy fees and custodial accounts for a lack of real options. The REALITY is there are banks ready to accept you if you are cannabis company. The issue is timing. If you can't get to a bank fast enough and you are growing then you find a way. I have always said - don't get in front of a hungry man. Ideally this holds true to cannabis companies as well. i.e. if they hear banking they perk up. Now the issue I have is with companies over promising things and then over charging for fees. This should not continue but it will until another solution arrives or the industry goes legal. So - folks here it comes - the solution to real banking and finance. Watch your news feeds - within a few weeks you will see how banking and finance will be transformed in cannabis. Over the last four years we have learned from the hits we have taken and are now ready to showcase reality in then next generation of banking cannabis.

Now how will companies respond? Most have already been with us during this transition. Fortunately most companies that know us - realize we do not over promise (we have been introducing companies to banks for nearly 4 years)- so we have a solid foundation for the banks we are working with to start legal banking procedures now. How will this all come together in the near future? We shall see - keep posted here you may be surprised to read more.