Canna Pro Digest: How Financial Institutions are Navigating the Industry in 2025

The cannabis industry continues to grapple with uncertain banking policies, with federal legalization still in limbo and financial institutions treading cautiously.

As CEO of Shield Compliance, a leading cannabis banking compliance platform, Tony Repanich has a front-row seat to the challenges and opportunities facing cannabis-related businesses (CRBs) and financial institutions alike.

Shield has worked with more than 70 banks and credit unions serving the industry, and can help connect cannabis organizations in need of banking services to these financial institutions.

In this exclusive Canna Pro Digest interview, we’ll explore how cannabis operators can secure banking relationships, what bankers need from their CRB clients, and what policy shake-ups under the Trump administration could mean for the industry.

And, of course, we’ll throw in a lighthearted question—because cannabis banking shouldn’t always feel like a compliance audit.

Let's dive in!

What’s the current temperature check on cannabis banking? 

Tony Repanich: The regulatory environment for cannabis banking remains complex. Despite carve-outs for financial institutions to serve state-licensed cannabis businesses, cannabis is still illegal federally, requiring banks and credit unions to conduct extensive due diligence. With federal agencies appearing to take a hard stance on cannabis, significant reform is unlikely, so I expect we will continue “business as usual” for the foreseeable future.

Federal inaction has been the norm—how does that impact financial institutions and cannabis operators?

TR: While federal reform isn’t moving as fast as many hope, it’s also unlikely to reverse. Cannabis generates significant tax revenue, keeping state programs firmly in place. Demand for banking services continues to rise, and in most markets, cannabis businesses have multiple financial providers to choose from. This gives them leverage to negotiate better rates, lower fees, and access to credit facilities.

What should cannabis businesses look for in a banking partner? 

TR: They should choose a financial partner that can support their long-term growth. Switching financial institutions is costly and time-consuming, so operators must consider the banking services they need now and in the years ahead. Transparency and regular communication are also key. Just as bankers engage with regulators on industry changes, cannabis operators must keep their bankers informed about any changes to their business.

What would rescheduling and 280E reform mean for cannabis banking?

TR: Eliminating 280E would significantly impact cannabis banking, especially lending. Currently, most industry loans come from private money, but as the market stabilizes, financial institutions are increasingly interested in lending to well-capitalized operators. Removing 280E would improve cash flow, making businesses more attractive loan candidates. However, banks would still need to comply with Bank Secrecy Act regulations, using financial data to assess creditworthiness and expand lending options.

If cannabis banking had a theme song, what would it be?

TR: "Ain’t No Mountain High Enough" by Marvin Gaye & Tammi Terrell. Besides the obvious pun, it reflects the industry’s resilience. Cannabis banking requires persistence—navigating FinCEN rules, filing endless reports, and finding creative solutions. So far, no obstacle has been too big to overcome.