I think a lot about legacy, and if there’s a single legacy that I can leave for Surety Bank and the industry, I hope there is power in thinking outside the box. For many good reasons, the banking industry is known for being straight-laced, sometimes to the point of rigidity. We have a lot of rules and regulations to follow to keep our customers safe. So, as new, innovative businesses develop, they rarely fit our framework. Unfortunately, too many banks allow regulations to rule supreme without leaving room for creative problem solving, leaving new industries out in the cold.
As the President of Surety Bank, I’m constantly juggling rules and regulations with creativity and a desire to serve the unserved. We have to keep our foot on the gas as we pursue new and innovative business, but with more in mind than simply doing something bold or exciting. There are individuals and companies in the world that traditional banks do not serve, and we are determined to create a place for them.
Whether or not you agree with the legalization of cannabis in the United States, it’s happening. State by state, we’re seeing people of all ages, political, and socioeconomic groups vote to give more people access to cannabis, and the government is taking notice. Most dispensaries currently deal in cash, which is a massive draw for bad actors looking for an untraceable way to launder money. Cash is king in the cannabis industry because federal regulations prohibit banks from providing accounts to companies selling it. But, in pretty short order, we’re going to see the deregulation of cannabis for banks, and Surety will be ready.
You may not realize that more than 14 million Americans are unbanked. Meaning they do not use traditional banks for one reason or another. While some are in this category because they’re skeptical of banks, most don’t have enough regular income. So what happens when an unbanked person receives a check, whether it’s a paycheck, or a disability check, or any check? They turn to Money Services Businesses (MSB). Because MSBs are often high risk vulnerable to fraud, some banks avoid doing business with them. But I believe banks are uniquely skilled to monitor MSBs for fraud and should be leading the charge when it comes to protecting these resources for our unbanked neighbors.
Cryptocurrency, like cannabis, is both a polarizing topic and an eventuality. Whether you trust it or not, cryptocurrency is here to stay. One of the commonly known faults of crypto is that the anonymity built into the system creates space for bad actors to exchange funds for criminal enterprises without being noticed. However, unlike some other banking executives, I don’t believe that the solution to this problem is to ignore it. This year, I joined the Cryptocurrency Compliance Cooperative because I think companies like ours should be leading the charge to make cryptocurrency safe and as fraud-free as possible.
People in the world use industries like cannabis, MSB, and cryptocurrency to do wrong. And I am confident that the solution to that problem isn’t to turn our backs on it. The banking industry is uniquely positioned to tackle fraud in these industries and others. At Surety Bank, we’ll always be standing up for the underdogs and doing what is right.
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