The marketplace is blazing with the news that cannabis is getting closer and closer to being legalized in many states.
While marijuana is currently only legal in 9 of the 50 states for recreational use, cannabis represents a $9 billion industry that is growing exponentially each day. It’s not stopping anytime soon.
This exponential growth holds the potential to solve so many issues, from overcrowding prisons to lack of jobs. But, before this can happen and the cannabis industry can reach its full potential, there’s a significant issue at hand that needs to be addressed -access to banking.
Because most major banks are regulated at a federal level, and cannabis is still prohibited federally, businesses that operate in states where cannabis is legal are still unable to put their money in banks or operate business banking accounts. Why does this matter? Well, this creates a need to move large amounts of cash safely, therefore bringing in the need for armored vehicles. Beyond cash, cannabis businesses need a secure way to move valuable products and inventory, and we’re talking very valuable products. So, here’s what we think can help.
Current state of Cannabis Banking
Cannabis banking can potentially cause some problems down the line since only 30% of cannabis companies have a bank account.
Hardworking commercial operators are struggling to find banks that will work with them, forcing these entrepreneurs to conduct most business with cash. Because of the existing federal regulations, a bank that provides services to a legal marijuana business faces possible criminal prosecution for “aiding and abetting” a federal crime and money laundering. Of course, no one wants to get in trouble and break the law.
However, this situation is likely very temporary. Cannabis is expected to grow to be a $50 billion industry in just a few years. In fact, ZipRecruiter.com says the marijuana industry is the fastest-growing employer in the national economy — employing some 160,000 people. That’s roughly the number of U.S. kindergarten teachers or three times as many people who work in the coal industry.
Clearly, the numbers speak for themselves. So, it stands to reason that the landscape of cannabis banking will be changing. We could very well see new banks that will be born out of this industry with insurance from all new sources, but this will take some time to come to fruition.
Last week, the California State Assembly effectively killed a bill that would have paved the way for state-chartered banks to handle finances for the expanding cannabis industry. It was never a perfect solution, but now California cannabis entrepreneurs have little chance of easy banking access any time soon. This presents a huge opportunity for an interim solution. There is an existing industry that is purpose-built to support large sums of cash transportation and storage, and that is armored truck companies. Time to capitalize, people.
Why Armored Trucks are a Short-Term Solution
Based on the current challenges associated with cannabis banking, armored trucks are already the best way to transport large sums of cash safely. With the growing cannabis industry, these trucks could prove to be even more crucial for the transportation of cash.
Without an armored truck service, it would be extremely risky to transport large sums of cash.
Currently, New Jersey allows only for medical use of marijuana, but it’s looking like that might change sooner than we think. According to Governor Murphey weed will be legal “sooner than later.” On Monday in Trenton, lawmakers took the first step towards the legalization of weed. The passage of the bill by the Senate and Assembly committees sends the bill to the full Legislature. They will hold another vote at some point in the near future. Our fingers are crossed.
All this confusion and uncertainty regarding cannabis banking is actually a good thing for armored truck companies, as they have the potential to emerge as the number one transporter. With this new opportunity comes a great need for armored truck companies in the tristate area especially. As of today, there is little competition in the Tri-State area when it comes to this industry, with the exception of some large and established companies. It’s the perfect time for smaller companies to step up and take the next step when it comes to the cannabis industry.
What DSM Can do to Help
So, what does this all have to do with marketing? How can we help?
At DSM, we’re all about taking your business to the next level by taking full advantage of digital marketing. We want to give your company the exposure that is necessary to succeed in such a competitive industry. We can help create unique branding and robust digital platforms for armored truck companies. And when we do, we know you’ll see increased website and social media traffic.
We can assist in the creation of engaging social media ad campaigns that feature video content and specific calls to action, because who doesn’t love watching a good video? It is our job to understand the market that you’re looking to target. We’re then able to take that knowledge and build successful campaigns that will help your company to be successful in finding a new source of revenue from the cannabis industry. The cannabis industry will only continue to grow, don’t you want to spark up an opportunity to take advantage of all that it can offer your business?