Banks and Dispensaries Have a Lot in Common… Here are some Key Similarities

In developing training and support services to unite the fast-growing cannabis industry with bankers and their products/services, it struck me (after 40 years in branch banking and consulting) that dispensaries share more common traits and elements with bank branches than anyone might think.

Here are the key similarities that banks have had to overcome and from which dispensaries can learn:

1. Regulated industries

Both cannabis dispensaries and banks are highly regulated industries, subject to strict state and federal laws and regulations. Cannabis dispensaries must comply with state regulations on the production, distribution, and sale of cannabis products, while banks are subject to regulations such as the Bank Secrecy Act (BSA) and anti-money laundering (AML) laws.

2. Cash-heavy businesses

Cannabis dispensaries and bank branches both deal with large amounts of cash. Cannabis dispensaries are often cash-only businesses, due to the federal prohibition on cannabis, while banks deal with cash deposits and withdrawals on a daily basis.

3. Security concerns

Both cannabis dispensaries and banks must prioritize security due to the risks associated with handling large amounts of cash. They may both employ security guards, surveillance cameras, and other security measures to protect their assets and customers.

4. Customer service

Both cannabis dispensaries and banks must provide high-quality customer service to retain customers and build loyalty. This includes ensuring a positive customer experience, addressing customer concerns and complaints, and providing educational resources to help customers make informed decisions.

5. Compliance and risk management

Both cannabis dispensaries and banks must prioritize compliance and risk management to avoid legal and financial penalties. They must develop and implement policies and procedures to ensure that they are complying with relevant laws and regulations and managing their risks effectively.

While there are certainly differences between cannabis dispensaries and banks, these commonalities demonstrate that both industries face similar challenges and must prioritize similar areas of focus to succeed in a highly regulated, cash-heavy environment. “What is old becomes new again!”

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