Home Business How a Lack of Legitimacy in the Cannabis Industry Creates Banking Challenges

How a Lack of Legitimacy in the Cannabis Industry Creates Banking Challenges

365
0
Confia

The cannabis industry is a decade old in s few U.S. states, but is still being treated as an illegitimate industry by the federal government, which creates barriers, including financial roadblocks for businesses, despite how compliant they are with state regulations. Banking access and compliance with varying legal state regulations remains a top concern for cannabis companies, but as stalls continue on SAFE Banking, operators are forced to innovate in order to keep their businesses compliant and financially strong.

However, the general public feels this should change. As NORML recently shared through a poll by Morning Consult, 65 percent of Americans “support allowing cannabis businesses to access banking services (e.g., checking accounts, business loans) in states where cannabis is legal,” and, 68 percent of the American public say Congress should pass legislation now.

Why is access to banking so important, and how can companies build legitimacy? 

Cannabis-related businesses, including smaller businesses that do contracting with cannabis companies, are often prevented from accessing banking services, loans and insurance. It can lead to robberies, issues with payroll and keeps the industry “underground” with compliance challenges.

Confia, helmed by CEO Mark Lozzi, the leading financial services provider for the cannabis industry, has partnered with two industry giants to “share the wealth” among the nation’s most deserving businesses. By leveraging their audiences and established organizational reputations, NCIA and Eaze help further Confia’s goal of bringing affordable, compliant financial services to the cannabis industry without the predatory practices typically seen in the industry. 

High Risk Banking, Simplified

Confia solves the high risk banking problem and really simplifies the way high risk clients can transact and bank in the financial system. Confia streamlines the payment process and flow by offering a vertically integrated financial service solution. Often the industry is forced to go into a disparate technology stack where they use Product A to tie to Product B to tie to a bank who may not readily accept these solutions. Confia has created a financial product and service platform that provides a vertical solution where we can accommodate a vertical solution with API payments and seamlessly bring that dollar and trace to the bank. Scalable flow of funds is the compliance and scope where we track the product of the dollar flow. This creates a strong case from a financial acceptance perspective. 

Part of Confia’s mission is to implement lasting change and reformulate the way high-risk industries bank, namely cannabis. Aiming to create a scalable solution for everyone, they believe a compliance focused technology is the only way to achieve this feat. Confia wants to provide business with fair access to banking, and has aspirations to partner with groups who are trying to rectify social inequalities. Not being able to control every outcome, Confia is dedicated to contributing where it can in hopes to make a difference.

Legitimacy is a big problem among companies in cannabis. If financial service providers like Confia can provide legitimacy by providing a bank account and supporting companies in their business endeavor, in a way that becomes affordable and not punitive based on personal or cannabis industry profiling, then we’ll see a higher acceptance of cannabis and ancillary businesses, trusting that they are remaining compliant and above-board.