Demand for cannabis banking services continues to grow, creating new revenue opportunities for financial institutions.
SEATTLE, March 16, 2022 /PRNewswire/ — Shield Compliance (https://www.shieldbanking.com/), a compliance management solution for cannabis banking, continues its rapid growth trajectory, achieving more than 220% year-over-year revenue growth in 2021 and more than doubling the number of financial institutions on its platform. These institutions collectively serve more than 2,300 cannabis-related businesses (CRBs), a nearly 250% growth. Shield also expanded its footprint with new clients in Maine, Missouri, New Mexico, Oklahoma, Oregon, and Puerto Rico.
“We are extremely pleased by the rapid and steady growth of financial institutions selecting Shield Compliance as their technology provider,” said Noah Carey, Founder and CEO of Shield Compliance. “These institutions are looking to position themselves for sustained growth, profitability, and efficiency and are betting on Shield to help them gain a competitive advantage. Our clients are sophisticated cannabis bankers who see a clear differentiation in the quality of our platform and services.”
To facilitate the delivery of financial services to CRBs, Shield continues to enhance its flagship BSA/AML compliance solutions: Shield Assure for daily monitoring and reporting; and Shield Engage for client application processing, underwriting, and onboarding. The company has also introduced new services. Launched as a pilot program, Shield Force is a professional service offering for financial institutions requiring additional compliance staffing support to maintain or expand their cannabis programs.
“The team at Shield Compliance understands the complexity of the cannabis industry and offers the solutions and a cost structure that improves our competitiveness,” said William Hufnagel, President and CEO of Dart Bank. “It is critical that we offer a cannabis banking program that is fully compliant and can be tailored to meet the needs of CRBs seeking banking services in a growing number of legal cannabis states. Shield offers the reliability and flexibility required to serve these customers effectively.”
Rising Demand for Cannabis Banking Services
The past year has seen adult-use cannabis legalized in New York, New Jersey, Connecticut, Arizona, and Montana. Today some form of medical or adult-use marijuana is legal in 38 states, representing upwards of 95% of the U.S. population. With many examples of successful retail programs to draw from, states are hitting the ground running. For example, Arizona, which launched adult-use sales in January 2021, is on track to outpace first-year sales in Colorado and Washington, the first states to legalize adult-use cannabis in 2012.
“A playbook exists for financial institutions to serve the cannabis industry and pass compliance exams today,” said Tony Repanich, President and COO of Shield Compliance. “As evidenced by our year-over-year growth, Shield continues to be the platform of choice for banks and credit unions seeking to improve compliance outcomes, better manage risk, and drive down operational costs.”
About Shield Compliance
Shield Compliance transforms how financial institutions serve the legal cannabis market. Its purpose-built BSA/AML compliance management software solution sits behind the financial institution to simplify compliance, automate processes across multiple data sources, create efficiencies, unlock new revenue, and scale operations. For more information, visit www.shieldbanking.com or contact [email protected].
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