Expanding Cannabis Financial Services Provider, Dama Financial, Aims to Bolster Bank Network Sponsorship by 100%
In a significant move, Patrick O'Boyle joined Dama Financial as CEO in February. Dama Financial, a fintech company focused on cannabis banking, aims to become a complete business solution provider for the cannabis industry.
Currently, cannabis is listed as a Schedule 1 drug under the Controlled Substance Act, making it challenging for banks like PNC Bank and Bank of America to serve legal cannabis-related businesses. However, the bipartisan Secure and Fair Enforcement (SAFE) Banking Act could potentially change that. The Act, if passed, could make it easier for banks to serve the cannabis industry, increasing opportunities for companies like Dama Financial.
Dama Financial facilitates a compliance-heavy and high-risk program for banks that are open to serving the cannabis industry. The company helps cannabis businesses secure banking and payments services, and its network of sponsor banks hold deposits for cannabis-related businesses.
CEO Patrick O'Boyle believes the SAFE Banking Act could significantly benefit Dama Financial. He stated, "The passage of the SAFE Banking Act would provide much-needed clarity and confidence to banks, enabling them to serve the cannabis industry more freely, and in turn, allowing Dama Financial to grow our banking relationships with institutions like PNC Bank and Bank of America."
The SAFE Banking Act has passed in the House seven times but has yet to pass in the Senate, with Republican and Democratic lawmakers in a stalemate over some of the text's details. Despite this, Dama Financial is actively working towards expanding its network of sponsor banks.
One of Dama Financial's strategies to achieve this is by leveraging its existing referral relationships. Referral banks point cannabis-related businesses towards Dama Financial's services but do not park deposits yet. Dama Financial aims to handle everything, from integrated point of sale solutions for retail and wholesale transactions, to seed-to-sale solutions, so that cannabis businesses do not have to play integrator themselves.
In 2026, Dama Financial plans to increase half of its portfolio number of sponsor banks. This expansion will undoubtedly strengthen Dama Financial's position in the cannabis banking industry and provide more opportunities for cannabis businesses to secure banking and payments services from institutions like PNC Bank and Bank of America.
In conclusion, with the potential passing of the SAFE Banking Act and Dama Financial's strategic expansion plans, the future looks promising for the cannabis industry in terms of securing banking and payments services from banks like PNC Bank and Bank of America.
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