Cannabis Banking is a Program, Not a Project
Despite the growing number of banks and credit unions entering this market, there’s a fundamental distinction that separates those merely “serving” cannabis businesses from those truly excelling in this space: the recognition that cannabis banking is a program, not a project.
Successful financial institutions (FIs) understand that banking cannabis-related businesses (CRBs) require more than account-level oversight or compliance checklists. It demands a holistic, data-driven approach that integrates visibility, structure, and strategy.
Why Leading FIs Treat Cannabis Banking as a Program
When it comes to managing a cannabis banking program, successful FIs prioritize the following key principles:
Micro and Macro-Level Visibility
FIs need a comprehensive view of their cannabis portfolio—both at the granular account level and the big-picture program level. Monitoring individual CRB accounts is necessary but insufficient; true success comes from understanding trends, risks, and opportunities across the entire portfolio.
Program-Level Risks and Opportunities
A narrow focus on individual accounts overlooks the aggregate risks and rewards of the program as a whole. For example, an FI may onboard a set of CRBs that comply individually but, in aggregate, concentrate risk in a single sector (e.g., cultivation). Without macro-level visibility, this could go unnoticed until it becomes a problem.
Data Expertise and Tools
Most professionals in banking are not data scientists—and they shouldn’t have to be. Extracting actionable insights from raw data requires well-designed tools and frameworks that are user-friendly and purpose-built for the nuances of cannabis banking.
Frameworks for Establishing and Measuring Goals
Every successful cannabis program begins with clear goals—such as profitability, compliance, or growth—and measurable KPIs to track progress. Leading FIs use structured frameworks to set, monitor, and adjust these goals as their programs evolve.
These insights may sound straightforward. Of course, data is essential. Of course, structured tools and processes matter. But in practice, most FIs fall short in delivering the systems, visibility, and expertise required to extract maximum value from a highly regulated portfolio like cannabis.
Compliance Is Not Enough
FIs often approach cannabis banking through the lens of compliance—and for good reason. Adhering to internal policies and external regulations is critical to mitigating risk and avoiding adverse actions from regulators. But compliance alone does not ensure success.
In today’s competitive market, FIs must look beyond mere compliance and embrace holistic portfolio management. Why? Because program-level risk and profitability are deeply interconnected. An FI cannot maximize the profitability of its cannabis banking program without simultaneously managing the risks tied to it—and vice versa.
By focusing on the big picture, FIs can:
- Identify and onboard CRBs that align with their risk appetite and business objectives.
- Continuously monitor program health using meaningful KPIs.
- Adjust strategy proactively, rather than reactively, as the market evolves.
Progress Is Only Valid If You Can Measure It
Data-driven decision-making is critical to scaling a cannabis banking program. As programs grow, so too do their complexity and opportunities. Without the ability to measure performance in a structured way, FIs risk operational inefficiencies that can stall progress or create bottlenecks.
Metrics vs. Goals
Common metrics like the number of accounts, deposit volumes, and fee revenue are useful indicators—but they’re just that: indicators. They represent the direction and velocity of a program’s performance, but they don’t tell the full story.
To truly gauge progress, these metrics must be measured against a structured framework of goals. For example:
Goal: Improve deposit diversification to reduce risk exposure.
Metric: Track deposit volumes by CRB type (e.g., dispensaries, cultivators) to ensure no single segment dominates.
Goal: Align fee-based revenue from CRB clients with industry benchmarks.
Metric: Monitor fee revenue as a percentage of total program revenue and compare against peer performance.
Operational Efficiency as a Growth Driver
Efficiency is a silent hero in cannabis banking. Streamlining processes—such as onboarding, transaction monitoring, and reporting—not only reduces costs but also enables growth by freeing up resources for more strategic initiatives. Tools that automate routine tasks and deliver actionable insights are essential for FIs aiming to scale their programs sustainably.
Treating cannabis banking as a program, not a project, is more than a mindset shift; it’s a strategic imperative. By focusing on visibility, data-driven decision-making, and structured frameworks, FIs can not only meet today’s regulatory challenges but also position themselves for long-term growth in this rapidly evolving market.
Meet Green Check’s new portfolio management platform
At Green Check, we’ve developed a portfolio management capability that grants financial institutions the ability to analyze their entire portfolio and data coming from cannabis markets throughout the U.S. That’s because Green Check leverages data from the more than 12,000 cannabis businesses and financial institutions already operating on its network. This offers unprecedented visibility into the cannabis landscape as it stands today — powerful information your institution and your clients can use to grow.
New dashboard
The front door of this new tool is the portfolio-wide dashboard. This new dashboard supports financial institutions in building, managing, and scaling their cannabis programs. You will be able to see their key performance indicators (KPIs) like gross and net deposits, sales, and fees over time. The dashboard will also display accounts by relative value and physical location, providing a sense of which customers and markets are most important to growing the business as a whole.
Micro and macro account views
Although portfolio-wide data is important, you still need to be able to zoom in on individual accounts to ensure compliance and best support each customer. The account drill down tool enables you to search for accounts by name, type, or location and examine data like deposits, fees, sales, and more.
Custom reports
The new portfolio management tool provides users with the ability to develop custom reports. All the data Green Check collects from your customers and state cannabis markets at large are available to be formatted in whatever way is most useful to you. Simply build a report that includes the metrics you need and export it to the format that’s most useful for you.
Cannabis banking success starts with Green Check
Is your cannabis banking program set up for success? Let Green Check help you build the visibility, tools, and expertise you need to scale with confidence. By using advanced portfolio management, you can turn data into action and unlock the full earning potential of your cannabis program. Get started with Green Check today to learn more about how we can supercharge your cannabis banking program and put you in a position for long-term success in the cannabis industry.
