Dama Financial is a cannabis-centric bank that provides financial services for businesses in the cannabis industry. Up until the end of 2019, it was nearly impossible for cannabis businesses to legally obtain financial services within the U.S., as banks were still wary of getting involved with cannabis.
This is a review of DAMA Financial and the services that they offer in this niche.
What is DAMA Financial?
As previously mentioned, DAMA Financial is a financial institution that offers banking services to businesses in the cannabis space through its partner banks. They provide a secure, convenient and transparent way for cannabis business to:
- Access cash
- Make and receive payments from customers and suppliers
- Make deposits with armored courier services
- Pay utilities and taxes
- Receive payments electronically
Their main office is in South San Francisco, CA.
How Does DAMA Financial Operate?
Businesses in the cannabis sector with a valid and active state-issued cannabis license can apply for an account with DAMA financial. They work through partner banks and the deposits made at these partner banks are insured for up to $250,000 per account.
Vendors and payees are set up on an online system, and due diligence is carried out before they can be approved for payment. Once a payee has been approved, they may receive payment electronically.
Does DAMA Financial Operate in Compliance with the Law?
Due to the requirements of the Bank Secrecy Act of 1970, all cannabis and hemp related transactions are reported on a quarterly basis. Banks are required to file anti-money laundering reports for any suspicious transactions.
They are also required by law to perform, and keep records of, regular anti-money laundering checks. DAMA Financial claims to comply with these requirements.
What are Employees Saying about DAMA Financial?
As of the writing of this article, there are two reviews of DAMA Financial on Glassdoor. One is positive and the other is negative.
A review that was posted on Feb 12, 2020 claims that this is the best company to work for. The employee was a full-time worker and this is some of what he had to say:
“Most entrepreneurial company I have ever worked for. Management has established a wonderful culture of collaboration and teamwork. It’s refreshing to be in an environment where everyone has input and decisions are made inclusively and swiftly. The team has bought into the collective vision and understands that it’s a pioneer in this industry. This excitement and enthusiasm permeates all team members across all offices. What more could you ask for!”
Another review posted on January 17, 2020 called DAMA Financial a terrible and dishonest company to work for. This former full-time employee had the following to say:
“Lied to about the role and comp plan at the interview. CRO actually has no power or say and is flogged and belittled by owners.”
What Stands Out about DAMA Financial?
Active Facebook page
Their FaceBook page is updated on a daily basis and has a chatbot that engages with visitors. One of the recent posts reads:
“Support your business operations safely from home. Send money electronically to securely pay your business partners, send invoices to track A/R, and improve (or sustain your) cash flow all from home.”
Engaged in the Industry
Recently, DAMA Financial CRO Eric Kaufman did an interview with Ganjapreneur where he was explaining how DAMA Financial is helping cannabis businesses access financial services.
Offer Armored Cash Collection
Cannabis businesses usually deal with very large sums of money. As a result, DAMA Financial offers scheduled pickups and deposits to FDIC- insured accounts.
Offer Digital Payment Solutions with Paytender
Digital payment solutions reduces the risk involved in handling cash, and it also improves transaction efficiency by allowing customers to complete transactions from the comfort of their homes.
Final Thoughts on DAMA Financial
DAMA Financial seems to be a reputable financial company that is set to transform how cannabis businesses make transactions.