The biggest benefits of responsibly banking high-risk businesses
Your expertise and solid execution could help serve your community, plus boost your revenue
Banking high-risk businesses can be profitable and provide a much-needed community service if you know how to do it responsibly and expertly. It is a prime opportunity for credit unions looking to diversify their portfolios and add new revenue streams without competing with big national banks.
What is a High-Risk Business?
When credit union leaders think of high-risk businesses, they often initially think of serving businesses in the cannabis and hemp industries. So you might be surprised to learn that your local real estate broker, your insurance agent, the gym where you work out, your favorite local restaurant, the gas station where you fill up your car, and the fintech company whose software technology you use every day are all considered high-risk. A business is generally considered high-risk for these main reasons:
- It operates in an industry with frequently changing regulations.
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