CANNABIS BANKING GUIDE | MINNESOTA
Building 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 consultation with Shield Compliance.
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’s green frontier: Navigating cannabis legalization
On a blocked-off street in downtown Minneapolis, a crowd of Minnesotans lit up their first legal joints here and puffed... More
BANKING
The Minneapolis-St. Paul Business Journal, in partnership with Platinum Bank, held a panel discussion recently on the emerging cannabis industry.
Minnesota Marijuana Regulators Release New Draft Rules For The Legal Cannabis Industry
On a blocked-off street in downtown Minneapolis, a crowd of Minnesotans lit up their first legal joints here and puffed... More
POLITICS
Minnesota’s Office of Cannabis Management (OCM) unveiled new draft marijuana rules on Wednesday as part of preparations for next year’s formal launch of the newly legal industry.
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.
Interim cannabis director: Minnesota still on track for legal market launch in 2025
On a blocked-off street in downtown Minneapolis, a crowd of Minnesotans lit up their first legal joints here and puffed... More
LEGISLATION
Minnesota is still on track to launch its legal recreational cannabis market next year, the top official in the regulatory agency said, despite concerns from some prospective businesses that the process is moving too slowly.
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.