EXCLUSIVE: Can Data Fix Cannabis Banking? Green Check CEO Breaks Down The Solution (CORRECTED)

Editor’s note: This story has been updated to correct misspellings of the company names PayQwick and Komplyd.

Kevin Hart, the founder and CEO of Green Check, spoke on the most recent episode of Cannabis Insider and said he has been essential in addressing the cannabis industry’s relationship with the banking industry. Hart’s background spans over four decades in enterprise software, where he has led multiple companies to successful exits and an IPO.

His journey with the company began when he was approached to build a point-of-sale system for the cannabis industry. Realizing the primary challenge was access to financial services, Hart shifted his focus to connecting cannabis businesses with banks through data-driven technology.

Data Solutions for Compliance

He says Green Check has improved the cannabis industry’s financial transactions by focusing on detailed, atomic-level data. “It always was and always will be a data challenge,” Hart explains. The company spent its initial years designing a platform capable of monitoring each transaction to ensure compliance with evolving regulations.

By doing so, he says they have provided financial institutions with unparalleled visibility into the financial health of cannabis businesses. This approach has enabled the company to partner with over 160 financial institutions and connect more than 10,000 cannabis businesses, all without charging the businesses directly.

Addressing Industry Challenges

The cannabis industry faces numerous challenges, from finding trustworthy business partners to navigating a complex regulatory landscape. Hart notes, “Unfortunately, there are a lot of bad actors out there.” Green Check helps cannabis businesses identify reliable partners beyond banking, including payroll, insurance, and cash logistics.

Acquisitions like PayQwick and Komplyd in 2023 have further enhanced the business’s offerings, making it easier for cannabis businesses to operate compliantly and efficiently.

Preparing for Federal Changes

As the cannabis industry anticipates potential rescheduling to Schedule III, Hart acknowledges the looming regulatory challenges. “The states are going to come back and go, ‘Wait a minute, we already said that you can do this.'” Green Check's compliance-first approach positions it well to navigate these changes.

The company's platform is designed to adapt to new regulations, ensuring that financial institutions and cannabis businesses can continue to operate smoothly despite federal and state law complexities.

Where To Hear More

Hart envisions a future where the cannabis industry’s economic potential is fully realized, with the company playing a large role.

“There’s a billion dollars in capital through our financial partners into the cannabis industry that’s being monitored via the platform,” he says. This frictionless economy aims to ease the daily operations of cannabis businesses, allowing them to focus on growth and community impact.

Hart will be a featured speaker at the upcoming Benzinga Cannabis Capital Conference, which will be held Oct. 8-9, 2024, in Chicago, IL. This event will provide further understanding of the changing cannabis financial landscape and Green Check's solutions.

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Cannabis rescheduling seems to be right around the corner. Want to understand what this means for the future of the industry? Hear directly for top executives, investors, and policymakers at the 19th Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9. Get your tickets now before prices surge by following this link.

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