SALINAS, Calif. — Abaca, an industry-recognized financial platform for cannabis operators, and Pacific Valley Bank are partnering to expand access to cannabis banking in the California market.
For the first time since the state legalized medical marijuana 26 years ago, legal operators in the industry have access to the powerful combination: a bank in tune with the California community and one of the leading cannabis fintech providers with a track record of compliant financial services nationwide. The partnership, Abaca x PVB, provides a single point of access for deposit bank accounts, electronic payment services and cash management options for licensed cannabis businesses in California.
"Abaca has been an agile, reliable, and innovative industry leader in helping connect legal cannabis businesses with financial services," said Anker Fanoe, CEO at Pacific Valley Bank. "Pacific Valley Bank is a community bank that has been a powerhouse serving the cannabis industry for over two years, with clients from San Diego to Sacramento. Offering accounts with Abaca allows us to deliver a streamlined one-stop-shop for current and future cannabis business customers and to amplify the work we've already done as one of the first FDIC-insured banks in California to work with the legal cannabis industry."
Only a small portion of banks and credit unions across the country are willing to serve the cannabis industry. Therefore, the cannabis industry remains significantly underbanked. Many operators experience difficulty accessing banking services that meet their needs.
As a result, these businesses are cash-heavy, sometimes even putting employees and the public at risk. Abaca x PVB helps this problem in California by normalizing access to modern financial services and treasury management for the cannabis industry across the state and nationwide.
"Many operators across the state have been let down by unsophisticated, unreliable, and unnecessarily burdensome banking solutions," said Dan Roda, CEO of Abaca. "Now, operators have access to the best of both worlds – the human touch of a California community bank with a deep understanding of the unique needs of the market and the powerful technology of a financial platform that enables operators to seamlessly manage their finances online. Together, Abaca and Pacific Valley Bank are committed to delivering the highest quality banking experience to the California cannabis industry."
Founded in 2017, Abaca works with its FDIC-insured bank partners to enable traditional banking services for operators ranging from single dispensaries to entire MSOs in 13 states – and now California. Additionally, the company's online banking platform offers payment and treasury services to cannabis businesses nationwide. Abaca announced in early 2022 that it had compliantly processed more than $3 billion in transactions for its customers.
