Berkshire Bank’s foray into cannabis banking in Massachusetts signals opportunity still exists for banks to serve marijuana-related businesses not just in the state, experts say, but also in other “booming” markets around it.
Berkshire Bank is launching a cannabis banking unit as it tries to take advantage of an “underserved” market in Massachusetts, New York, Connecticut and Rhode Island.
Massachusetts’ banks and credit unions continue to enter the cannabis banking field. The draw: existing customers now serving the marijuana industry and perceptions of an underserved market for cannabis business lending.
The chairman of the Cannabis Control Commission raised concerns Thursday with what he said are “predatory financing deals” being offered by private lenders to minority marijuana entrepreneurs, and urged state legislators to address the issue by setting up a public lender.
Rather than keep the marijuana banking business it acquired bybuying Century Bank, Boston-based Eastern Bank has decided to transfer the business unit – but not to one of the banks already operating in the space.
While working at a regtech firm, Mike Kennedy heard from bank and credit union executives who were looking to remain competitive against larger banks and fintech providers. The conversations gave him an idea: Marijuana regtech Green Check Verified.
