Even though a cannabis retailer may generate millions of dollars in revenue annually, he or she will still struggle to open a bank account. Access to financial services is still a major challenge for the adult-use market industry, even more than 10 years after it was launched. Cannabis remains illegal on the federal level, so many financial institutions have a reluctance to provide services to licensed operators even though states have legalized it.
Credit unions are one of the few banking options available to licensed operators. Credit unions developed programs that are compliant with state laws for cannabis businesses, which is different from many national banks. Pima Federal Credit Union has developed a dedicated cannabis banking service for licensed cannabis businesses located in seven different states.
Building a Cannabis Industry Banking Program
Pima Federal’s cannabis banking program was launched in 2020 at a period when the number of reliable financial services available to licensed operators was limited.
Frank Smith explains, “This wasn’t a trend-chasing move.” “It was an intentional, mission-aligned reaction to a broken process. Pima Federal recognized this wasn’t just a business inconvenience—it was a public safety and financial integrity issue.”
When you run a business that relies heavily on cash, the challenges go far beyond just depositing money. When traditional banking is not available, payroll, vendor payments and tax obligations become more complex. Pima’s services include ACH/wire transfers, fraud protection and armored cash transport, as well as online banking for cannabis operators.
Pima Bank offers commercial property loans for cannabis businesses, and in particular those operating in Arizona.
It’s More Than Just a Place to Deposit Cash
Cannabis businesses require more than just a place to put their cash. They require secure cash transportation, electronic payments, fraud prevention, and banking partnerships that understand industry regulations. Pima’s cannabis banking program is built around these day-to-day needs.
Pima’s program was not designed as a cannabis banking experiment. Instead, it is based on transaction monitoring, automated reporting of compliance, structured approvals, and third-party validation through Green Check Verified. Smith said that the goal of the program was to create a repeatable, transparent model that would meet the expectations of regulators as well as cannabis operators.
“The industry needed a ‘do it right’ model,” Smith says. If cannabis banking is to be conducted, then it must be done by institutions who are prepared to do so transparently, rigorously, and responsibly.
Pima Federal has been serving its members for over 70 years. The credit union has always put the member first.
Smith recalls that the credit union, founded in 1951 with only $84 in their pockets and a desire to help others in need, has always had a strong focus on values based around people. “Today, our commitment is to be smart, simple and personal.
Pima’s cannabis bankers have more than a decade’s experience in working with cannabis companies and are able to tailor their services for the unique challenges of compliance and operational issues that arise. Credit unions don’t offer only deposit accounts. They provide a wide range of financial tools to help businesses grow.
Smith says that “Our team has a relationship-driven, thoughtful approach to banking.” Smith says that rather than offer products that are one size fits all, they focus on understanding the unique financial goals of each member and providing solutions to support their success.
Look Forward
Pima Federal Credit Union is a great asset, especially with the partial federal rescheduling that’s on the horizon.
“At its core, our mission is to improve the financial well-being of people. As a credit union owned by its members, we are committed to improving the financial health of both our members and communities we serve while protecting the trust placed in.
Our approach is guided by values that shape every interaction—service excellence, integrity, teamwork, engagement and community involvement. These principles not only influence how we serve and experience our members but also how our products are designed. Pima Federal does not only reduce compliance burden but also operational burden. Cash is managed and not just accepted.
Federal cannabis banking reforms are uncertain. Licensed operators must navigate a patchwork financial landscape. Credit unions such as Pima Federal fill in the gap while waiting for broader legislation to change. They provide compliant banking services to cannabis businesses that help them operate more efficiently, safely and with greater stability.
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