Hemp-Friendly Banking: Financial Perks for Cannabinoid Brands

As the hemp and cannabinoid industry continues to grow, one of the biggest challenges for brands isn’t just compliance or product innovation; it’s banking. 

Despite the legal status of hemp under the 2018 Farm Bill, many financial institutions remain hesitant to work with cannabinoid-focused businesses due to outdated regulations, federal uncertainty, or the stigma surrounding cannabis. This leaves many legitimate hemp brands struggling with limited banking options, high fees, and restricted access to capital.

But the tide is turning. A growing number of hemp-friendly banks and financial

service providers are emerging to fill the gap, offering tailored solutions that support the unique needs of this industry. From easier merchant processing to better loan opportunities, cannabinoid brands that secure the right banking relationships are unlocking major financial advantages.

In this article, we’ll talk about the perks of partnering with hemp-friendly financial institutions and how those relationships can empower your brand’s growth.

Key Takeaways

• Despite hemp’s legality, many banks still deny services to cannabinoid brands due to regulatory gray areas and perceived risks.
  

• Hemp-friendly institutions like First Citizens Bank, Customers Bank, and Safe Harbor Financial offer reliable banking, merchant processing, and lending tailored for cannabinoid companies.
  

• These banks provide full-service solutions, from checking accounts to ACH, compliance support, and even working capital loans for hemp operators.
  

• Strong financial compliance, including AML/BSA adherence and transparent recordkeeping, is essential for building and maintaining stable banking relationships.
  

• Partnering with Arvida Labs supports GMP-compliant manufacturing and third-party tested cannabinoid products, helping you stay audit-ready and bankable.
  

Banking Challenges in the Hemp Industry

Federal and state regulations create a complex landscape for hemp businesses seeking traditional banking services. Despite hemp's legal status under the 2018 Farm Bill, many financial institutions remain hesitant to work with cannabinoid brands due to perceived risks and regulatory uncertainties. 

Here are some challenges that cannabis companies face in the hemp industry.

Account Stability Issues

The most immediate challenge is maintaining stable banking relationships. Businesses often face account closures, frozen assets, or outright rejection when attempting to open business accounts. These disruptions interrupt critical operations, affecting everything from vendor payments to payroll processing. 

For companies scaling the production of their products, banking interruptions can derail time-sensitive launches and threaten business relationships.

Payment Processing Barriers

Payment processing becomes a major pain point, with inconsistent service and frequent interruptions disrupting cash flow. Traditional processors often reject or terminate merchant accounts for companies selling cannabinoids like HHC distillate or Delta-8, regardless of Farm Bill compliance. 

Many white-label brand clients report spending significant administrative resources simply maintaining functional payment systems.

Financial Premiums

High fees compound these operational challenges. Banks that do work with cannabinoid businesses typically charge premium rates, citing increased compliance costs and risk management requirements. 

These elevated fees directly impact profit margins and limit growth potential, especially for emerging brands looking to scale their product lines.

Industry-Specific Solutions

Specialized hemp banking solutions address these challenges head-on. These services are designed with the unique needs of cannabinoid manufacturers in mind, offering stable accounts, reliable payment processing, and more reasonable fee structures. 

Partnering with financial institutions experienced in hemp industry compliance reduces regulatory risk and provides guidance through the intricacies of transaction monitoring specific to cannabinoid businesses.

Reliable payment processing establishes the foundation for operational efficiency. Hemp-friendly banking solutions provide consistent card processing, ACH transfers, and other essential financial services, allowing manufacturers to focus on product development and formulation excellence rather than constantly troubleshooting payment issues.

Financial Compliance for Hemp Brands

Financial compliance is a key aspect of running a successful hemp business. As a cannabinoid manufacturer or brand, adherence to Anti-Money Laundering (AML) and Bank Secrecy Act (BSA) regulations is essential for maintaining good standing with financial institutions and regulatory bodies.

Apart from basic regulations adherence, here are some things you need to consider as a hemp brand.

Core Compliance Requirements

AML and BSA regulations call for robust internal controls, thorough customer due diligence, and detailed transaction records. Companies working with products like THCp distillate or other cannabinoids benefit from clear financial transaction policies that help prevent suspicious activities and demonstrate a commitment to operating within legal frameworks.

Your team's familiarity with compliance protocols through regular training sessions creates a strong foundation for regulatory adherence. This proactive approach not only protects your business but also builds trust with banking partners who might otherwise hesitate to work with cannabinoid companies.

Operational Systems for Compliance

Advanced tracking systems for inventory and sales create necessary transparency in your financial operations. The reports and audit trails from these systems simplify compliance checks and regulatory reporting, a critical advantage for bulk cannabinoid suppliers and white-label manufacturers managing high-volume transactions.

Meticulous documentation of all financial activities, from sourcing and production to sales, forms the backbone of sound compliance practices. Such documentation serves as evidence of regulatory adherence and becomes invaluable during audits or investigations.

Building Compliance Partnerships

Relationships with legal and financial experts who specialize in the hemp industry offer valuable guidance for navigating evolving regulations. Their expertise helps your company avoid potential pitfalls that could threaten banking relationships in this specialized sector.

Open communication with banking partners about your business operations and compliance efforts helps foster trust and understanding. This transparency often leads to more stable banking relationships and potentially better financial services tailored to the unique needs of cannabinoid businesses.

Adaptive Compliance Strategy

Your compliance strategies should evolve through regular reviews and updates to remain current with changing regulations. This ongoing adaptation demonstrates your commitment to ethical and legal operations in the hemp industry, qualities that banking institutions recognize and value.

Hemp-Friendly National Banks for Hemp Brands in the U.S.

With a solid understanding of compliance requirements in place, let’s take a look at some national banks that are known to work with hemp and cannabis-adjacent businesses in the U.S.

1. First Citizens Bank

First Citizens Bank is one of the largest family-controlled banks in the U.S., with a nationwide presence and a reputation for conservative but forward-thinking banking. Headquartered in North Carolina, this FDIC-insured institution operates a dedicated Cannabis Banking division that openly serves legal hemp and CBD businesses​. 

The bank’s team of specialists has deep industry knowledge, as evidenced by First Citizens extending a $1 million line of credit to MC Nutraceuticals, a major supplier of hemp-derived cannabinoids​. 

This track record highlights First Citizens’ commitment to supporting hemp brands under the 2018 Farm Bill.

Expert Cannabis Banking Team

First Citizens offers hemp businesses a white-glove banking experience led by experts in cannabis-related finance. The bank has assembled experienced financial professionals who understand the unique legal and logistical hurdles faced by hemp companies​. 

This dedicated compliance team stays up-to-date with evolving regulations (from the Farm Bill to the SAFE Banking Act) and works closely with clients to ensure all federal guidelines are met.

Comprehensive Financial Services & Lending

As a full-service commercial bank, First Citizens equips hemp and CBD brands with a complete suite of financial products. Beyond standard business checking and treasury management, they are willing to extend financing to eligible hemp companies – a rarity in this industry. 

A recent example is First Citizens providing a $1 million working-capital line of credit to a hemp-derived wellness supplier​. This demonstrates the bank’s ability to offer loans, lines of credit, and equipment financing to cannabis-adjacent businesses when many banks will not.

Industry Education & Specialized Support

First Citizens Bank goes a step further by offering educational resources and personalized support tailored to the cannabis/hemp sector. The bank regularly publishes reports and case studies on hemp and cannabis business strategy, compliance, and market trends​. 

Clients gain access to these insights and can connect with the bank’s hemp banking specialists for guidance​. From helping a CBD startup establish sound financial controls to advising an expanding hemp processor on risk management, First Citizens positions itself as an advisor as much as a banker. 

Why You Should Work with First Citizens Bank

First Citizens Bank combines the resources of a top-20 U.S. bank with a genuine dedication to hemp and CBD entrepreneurs. For a hemp brand, partnering with First Citizens means reliable banking from a financially strong institution that won’t shy away from your line of business. 

In summary, First Citizens delivers stability, expertise, and comprehensive solutions under one roof for hemp businesses.

• Established Bank with Hemp Expertise: A major bank openly backing hemp companies, including financing deals, under a dedicated cannabis banking unit​.
  

• Dedicated Compliance Support: In-house specialists deeply versed in hemp regulations ensure your accounts and transactions remain in full compliance​.
  

• Full Suite of Services: Business checking, online banking, ACH/wires, and even loans/credit lines are available to meet hemp companies’ day-to-day and growth needs.
  

• Thought Leadership: Access educational content, legislative updates, and case studies that keep you informed about industry trends and best practices​.
  

• Nationwide Reach & Stability: Enjoy the credibility and convenience of banking with a large, federally insured institution known for conservative stewardship and customer focus.

2. Customers Bank

Customers Bank is a Pennsylvania-based super-community bank with operations along the East Coast (from D.C. to Boston) and the Midwest​. With around $19 billion in assets (as of 2025 after growth from $11.2B in 2019​), it punches above its weight in innovation. 

Notably, Customers Bank was one of the early adopters of hemp banking after the 2018 Farm Bill. In September 2019, it announced full commercial banking services for legal hemp growers and CBD product companies in Pennsylvania and New York​. 

This initiative signaled Customers Bank’s willingness to openly work with hemp brands when many traditional banks stayed on the sidelines. The bank’s reputation for high-touch service and technology (it’s the parent of BankMobile) extends to these hemp clients, making it a nationally known hemp-friendly institution with a growing footprint​.

Full Suite of Banking Services for Hemp

Customers Bank provides hemp and CBD businesses with the same breadth of services it offers any other commercial client — a critical advantage in an industry often denied basic banking. 

Hemp permit-holders can access business checking and savings accounts, online and mobile banking, ACH and wire transfers, fraud protection, and bill pay, all through Customers Bank​. 

In practice, this means a hemp farm or CBD retailer can safely deposit funds, pay suppliers electronically, and manage payroll without workaround solutions. The bank explicitly markets that it offers “a full suite of business banking services” to growers, processors, testing labs, and other legal hemp-related ventures​.

Hemp-Savvy Bankers and Compliance Controls

What sets Customers Bank apart is its internal investment in understanding and monitoring the hemp industry. The bank has created detailed internal procedures and compliance controls to serve hemp businesses while staying within federal guidelines​. Senior leadership has been vocal about closely following public policy developments and adapting the bank’s programs accordingly​. 

Importantly, Customers Bank’s team includes knowledgeable business bankers who specialize in hemp and CBD accounts, ensuring clients deal with staff who speak their language. 

Commitment to Emerging Industries

Customers Bank’s proactive embrace of hemp banking reflects a broader philosophy: it seeks to be an early entrant in promising, underserved markets. Executives have noted that hemp and CBD businesses, though nascent, “represent exactly the types of opportunities that banking leaders should be pursuing.”

The bank’s willingness to engage with hemp companies now – “when the time is right”​ – gives its clients a leg up. They benefit from a bank that is committed to long-term partnership, not just transactional services. Customers Bank has even sponsored industry events like the Pennsylvania Hemp Summit​, signaling support beyond pure banking. 

This forward-looking approach means as your hemp brand grows and the industry evolves, Customers Bank is prepared to expand services (such as equipment loans, lines of credit, or merchant services through partners) to meet new needs.

Why You Should Work with Customers Bank

For hemp brands in need of a reliable banking ally, Customers Bank offers a compelling mix of genuine industry acceptance and full-service capability. If you operate in the U.S. and especially on the East Coast, Customers Bank can be a strategic banking partner that helps you scale confidently.

• Early Mover in Hemp Banking: Began serving hemp/CBD companies in 2019, demonstrating experience and comfort in the space when many banks had none.
  

• All-in-One Banking: Provides deposit accounts, digital banking, ACH/wires, and more​ – eliminating the need for piecemeal financial solutions or cash-heavy operations.
  

• Industry Specialists on Staff: Hemp-focused bankers and compliance experts guide you through onboarding and growth, leveraging knowledge of hemp regulations and market needs​
  

• Proactive Compliance: Internal policies ensure your hemp business stays within legal boundaries​, so you avoid sudden account closures or surprises.
  

• Relationship-Oriented: A partner mindset with outreach to hemp industry events​ and a focus on helping hemp businesses become sustainable economic drivers over the long term.
  

3. Safe Harbor Financial (Fintech Banking Platform)

Safe Harbor Financial is a fintech-driven financial services platform that specializes in providing banking solutions to cannabis and hemp businesses on a national scale. Unlike a traditional bank, Safe Harbor is a publicly traded fintech company (NASDAQ: SHFS) that partners with chartered banks and credit unions to deliver compliant accounts to cannabis-related businesses​. 

Safe Harbor was born out of the pioneering cannabis banking program of Partner Colorado Credit Union in 2015 and has since facilitated over $12 billion in cannabis and hemp-related deposit transactions. 

Today, it stands as one of the only nationwide options for hemp brands seeking transparent, legal banking​. Through Safe Harbor, a hemp or CBD company in any state can apply online and be connected to an FDIC-insured banking partner that will openly manage their account. 

This platform approach, backed by Safe Harbor’s seasoned compliance experts, has made it a go-to solution for hundreds of hemp and CBD businesses that struggled to find services elsewhere.

All-in-One Cannabis Banking Platform

Safe Harbor Financial offers an all-in-one platform called Cannabis Banking Solutions™ that addresses the full spectrum of financial needs for hemp businesses​. When you join Safe Harbor, you not only get a business checking account at a partner bank (with full FDIC insurance), but also access to a suite of integrated services through a single dashboard​. 

This includes tools for paying vendors, processing customer payments, and managing cash flow electronically. A signature feature is Safe Harbor’s Payment Exchange, which enables hemp and CBD companies to accept credit card payments online (where permitted) and send/receive ACH payments — functions that many standard banks or processors have denied hemp businesses​. 

With Safe Harbor, you can invoice clients, set up recurring ACH or card billing for subscriptions, and reconcile all your transactions in one place. Essentially, it combines what you’d need from a bank and a payment processor into a unified, cannabis-compliant system.

Compliance-First Approach

What truly differentiates Safe Harbor is its relentless focus on compliance and regulatory navigation, which is built into every aspect of its service. The company’s roots in cannabis banking mean it has developed rigorous protocols to vet clients and monitor transactions in accordance with FinCEN guidance and the Farm Bill. 

Safe Harbor’s team of regulatory experts works closely with each client to gather required documentation (state hemp licenses, COAs for THC levels, etc.) and ensure all activity stays within legal limits. Their services are “purpose-built for hemp by regulatory and compliance experts,” allowing businesses to “stay banked and focused” on growth rather than paperwork​. 

For example, Safe Harbor’s software can flag any incoming or outgoing payments that might be out of profile, and its advisors regularly update clients on changing state or federal rules. Moreover, Safe Harbor only partners with financial institutions that are themselves committed to cannabis compliance, such as Five Star Bank (NY) and Pacific Valley Bank (CA)​. This multi-layered compliance oversight dramatically lowers the risk of account closures or interruptions.

Personalized Service & Industry Advocacy

Despite being a tech platform, Safe Harbor prides itself on offering personalized, high-touch service to its clients. Each hemp business is assigned a dedicated relationship manager — effectively a concierge who is available to answer questions, assist with any banking issues, and guide you through complex transactions​. 

This personal advisor model means you aren’t dealing with a faceless app; you have a real human expert who understands your account and business goals. Safe Harbor has also been a vocal advocate for better banking access for the cannabis/hemp industry at large.

The company frequently engages with policymakers (supporting initiatives like the SAFE Banking Act) and provides education on the importance of bringing hemp businesses into the financial mainstream. 

By working with Safe Harbor, hemp brands align with a platform that is actively pushing the industry forward. They were among the first to prove that cannabis/hemp businesses can be banked safely, and they continue to lead by example.

Why You Should Work with Safe Harbor Financial

Safe Harbor Financial is an excellent choice for hemp and CBD companies that want a hassle-free, one-stop banking solution designed for their industry. It bridges the gap between traditional banking and the unique demands of cannabis/hemp commerce, all while maintaining the highest compliance standards.

• Nationwide Coverage & Access: Apply online and get matched with hemp-friendly, FDIC-insured banking no matter where your business is based in the U.S.
  

• Unified Banking & Payments: Manage deposits, ACH transfers, and credit card processing all from Safe Harbor’s all-in-one cannabis banking platform – no need for separate merchant accounts​.
  

• Top-Tier Compliance: Operated by cannabis banking veterans who embed compliance checks into every service, ensuring your hemp business stays on the right side of regulations​.
  

• Dedicated Support: Enjoy concierge-level service with a personal advisor who understands your business and provides ongoing support, from onboarding to daily transactions​.
  

• Proven Track Record: Safe Harbor has been banking cannabis since 2015, processing billions safely. By choosing them, you join a platform that has successfully kept hundreds of cannabis and hemp companies banked when others could not.
  

Steps to Become a Compliant Hemp Startup

Breaking into the hemp industry is exciting, but it's also filled with regulatory hurdles. To succeed and scale sustainably, your startup must prioritize compliance from day one. 

Below are key steps to ensure your brand operates legally and efficiently within the cannabis and hemp space.

1. Secure Hemp-Friendly Banking

Traditional banks often avoid working with hemp and cannabis companies due to federal restrictions and compliance complexities. As a result, securing reliable, hemp-friendly banking is a foundational step.

You'll need a financial institution that understands the nuances of hemp legislation, offers transparent fee structures, and won’t freeze your assets unexpectedly.

Look for banks or credit unions that specifically offer services for cannabis-adjacent businesses. They should provide merchant accounts, payment processing, and support for high-risk transactions.

Be prepared to submit detailed documentation including your licensing, business plan, and supply chain records. Starting your banking relationship with transparency sets the tone for long-term stability.

2. Creating a GMP-Certified Facility

If you're manufacturing hemp products in-house, meeting Good Manufacturing Practice (GMP) standards is non-negotiable. GMP certification ensures your products are made under strict hygiene, safety, and quality controls. 

However, setting up a GMP-compliant facility is costly. Equipment like commercial-grade extractors, vacuum ovens, homogenizers, and cleanroom systems can cost upwards of $500,000 to $1M, not including staffing and training.

This is where Arvida Labs becomes your most strategic partner in growth. We provide GMP-compliant manufacturing infrastructure without requiring you to invest hundreds of thousands of dollars in equipment, staff, or certifications. 

Whether you're launching your first product or scaling an existing line, our facility and expert team are ready to support you with precision, speed, and consistency.

By partnering with Arvida, you get more than just production support, you gain a reliable, regulatory-compliant extension of your brand. Our services are designed to give you maximum flexibility with zero compromise on quality.

• Custom Formulations: Work with our formulation specialists to create unique cannabinoid blends, functional ingredients, and delivery systems tailored to your brand vision.
  

• Bulk Liter Processing: We process hemp extracts at scale, ensuring purity, potency, and batch-to-batch consistency, perfect for brands looking to maintain product integrity across SKUs.
  

• Blending: We expertly blend cannabinoids, terpenes, and other actives into homogenous mixtures, ensuring accurate dosing and optimal efficacy.
  

• Filling: From tinctures to topicals, our automated filling lines allow for clean, consistent, and efficient packaging, ready for retail shelves.
  

• Terpene Profiling: Customize your product’s aroma, flavor, and effect profile using our terpene formulation services, with options for both botanical and cannabis-derived blends.
  

• Edible Manufacturing: Get turnkey support on cannabinoid-infused gummies and other edibles with consistent dosing, compliant ingredients, and great taste.
  

By outsourcing with Arvida Labs, you retain full control of your brand while using our industry-grade manufacturing processes. We help you reduce risk, lower production costs, and stay compliant with ever-changing regulations, all while delivering premium products your customers can trust.

3. Obtain the Right Licensing

Before you produce or sell anything, ensure you have all necessary federal, state, and local licenses. The requirements vary widely by region, but common permits include:

• Industrial hemp grower/processor license
  

• Food manufacturing license (for edibles)
  

• Sales and use tax permits
  

• Business operation licenses

4. Third-Party Testing for Transparency

Compliance doesn't stop at manufacturing. Your products must undergo third-party testing to confirm cannabinoid content, ensure no harmful contaminants are present, and verify they stay within legal THC limits.

But high-quality testing results start with high-quality raw materials. Low-grade hemp distillate or poorly mixed formulations can result in inconsistent lab results, or worse, failed compliance. That’s why sourcing from a trusted supplier is essential.

At Arvida Labs, we formulate and refine all of our distillates and raw ingredients with third-party testing standards as a top priority. Every batch we produce is meticulously crafted to be clean, potent, and compliant, ensuring it meets or exceeds the requirements of state testing labs and national quality standards. 

We understand that one failed test can jeopardize your entire product launch or damage your brand reputation, which is why we engineer our materials to pass with consistency and confidence.

Whether you're outsourcing full product formulation or simply need premium, compliant raw inputs, we provide materials that deliver reliable cannabinoid potency, low residual solvents, clean heavy metal profiles, and undetectable microbial contamination, all verified through independent third-party labs.

We also help you navigate COA documentation, batch traceability, and regulatory reporting to ensure your brand is always audit-ready. By sourcing from Arvida Labs, you're not just buying ingredients, you're investing in safety, credibility, and peace of mind.

Partner with Arvida Labs today to source the very best in raw materials for your hemp business.

Closing Thoughts — Why is a Cannabis-Friendly Bank Important

For hemp and cannabis brands, working with a cannabis-friendly bank isn’t just convenient; it’s essential. From securing reliable payment processing to managing payroll, taxes, and inventory purchases, financial services are the backbone of a legitimate, scalable operation. 

Traditional banks often present unnecessary roadblocks or shut down accounts without notice, putting your business at risk. Choosing the right financial partner helps you stay compliant, avoid interruptions, and maintain trust with customers and investors alike. The right bank understands your industry, and that makes all the difference as you grow.

*The information provided in this article is for general informational purposes only and does not constitute financial, legal, or investment advice. Arvida Labs is not a financial institution or advisor, and we do not claim expertise in financial services. All content is based on publicly available research and industry trends at the time of writing, which are subject to change. Readers are strongly encouraged to consult with licensed financial professionals or legal advisors before making any decisions related to banking or financial services for their cannabinoid business.