CANNABIS BANKING GUIDE | MINNESOTA
Build a Cannabis Banking Program in Minnesota
The legal cannabis market in Minnesota is poised for rapid growth. According to New Frontier Data, annual legal sales in the state are expected to surge from $90 million in 2024 to $1.5 billion by 2030. This increase is driven primarily by the introduction of adult-use cannabis sales, which will commence in 2025.
What every Minnesota banker should know about cannabis banking.
Cannabis banking brings significant growth potential, along with challenging operational demands and complex regulations. Get started by defining your path forward.
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Build a business case for cannabis banking.
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Understand the risks.
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Develop strategies to mitigate risk.
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Implement systems to promote compliance and client service.
NEED TO KNOW
Projected Market Growth in Minnesota
Source: New Frontier Data
Boost your balance sheet with cannabis banking in the North Star State.
Given the complexities of this line of business, financial institutions must understand the economics of cannabis banking and tailor their products and services to meet the evolving needs of their customers. By establishing policies and procedures, implementing an effective technology platform, creating a scalable pricing structure and developing expertise and relationships now, bankers can gain competitive advantage.
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Conduct a guided review of your institution's risk tolerance.
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Develop a risk assessment tailored to the needs of your institution.
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Define and document the policy considerations of your banking program.
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Educate your stakeholders, including meetings with regulators.
GET STARTED
SHEDULE A CONSULTATION
Get expert guidance to build your cannabis banking program in Minnesota. Schedule a no-obligation consultation with Shield Compliance today.
The Shield Compliance team can help you unlock the benefits of serving this industry. Contact us to learn how to design a cannabis banking program that meets your financial institution's needs for effective management and operations.
"Partnering with experts who can assist with implementing compliance technologies, risk management policies, and operational processes required for banking this industry will help financial institutions create the foundation for an effective program and ultimately gain the financial rewards of cannabis banking."
Tony Repanich, President & CEO
Shield Compliance
MINNESOTA HEADLINES
Minnesota sets June 5 as date for cannabis license application lotteries
On a blocked-off street in downtown Minneapolis, a crowd of Minnesotans lit up their first legal joints here and puffed... More
LEGISLATION
The Office of Cannabis Management announced a date Monday for cannabis license application lotteries as the state moves closer to launching its recreational marijuana market.
Minnesota cannabis agency begins accepting license applications for pot businesses
On a blocked-off street in downtown Minneapolis, a crowd of Minnesotans lit up their first legal joints here and puffed... More
LEGISLATION
Applications for most license types will be accepted starting Tuesday until March 14 with licenses scheduled to be awarded in lotteries later this spring.
Cannabis sector may be a legal headache, but it's a gold mine for deposits
On a blocked-off street in downtown Minneapolis, a crowd of Minnesotans lit up their first legal joints here and puffed... More
BANKING
The cannabis industry still has plenty of legal complications, but for banks seeking deposits, the upside could be worth it.
WHITE PAPER
Get the Cannabis Banking Playbook
The Cannabis Banking Playbook defines a path forward for financial institutions to serve cannabis-related businesses compliantly while gaining the financial rewards of the legal cannabis market. Sign up to download your copy.
Are You Ready to Serve Minnesota's Legal Cannabis Market?
While banking this line of business offers compelling financial benefits such as new low-cost deposit growth, non-interest income, and the potential for earning assets, banks need to make sure they are grounded in the realities of the cannabis industry and the strategic business reasons for getting involved.