The Albuquerque, New Mexico-based U.S. Eagle Federal Credit Union announced last week plans to close its cannabis banking arm, the Albuquerque Journal reports. The company said the closure of the Aery Group, which launched in 2019, is due to increased competition among financial services providers as the cannabis industry has grown.
In an interview with the Journal, Michael Moore, president and CEO of U.S. Eagle, said that servicing the cannabis industry is not part of the company’s long-term strategy and that growing the service was “difficult…without going out of state or into other markets.”
“We are not trying to close the door permanently.” Definitely not a ‘no,’ but a time-will-tell approach.” — Moore, to the Journal
Damien Padilla is the owner of Cannabis Driven Management and told The Journal there are currently 19 financial service providers working with cannabis businesses in New Mexico.
Padilla stated that increased competition “comes with every market.”
The Aery Group is one of New Mexico’s first financial institutions that served the cannabis industry. The closure is set to take effect November 1.
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