With a swipe of Gov. J.B. Pritzker’s pen, Illinois officially became the 11th state in the country to legalize recreational cannabis, and the first to enact a commercial adult-use program through legislative action. The bill, which was passed by the General Assembly on May 31, creates a new revenue source to help fund the state’s ailing budget and fulfills a key campaign promise of our newly elected governor. While it is surely a celebratory moment for cannabis reform advocates, it also highlights a significant problem for marijuana-related businesses: a glaring lack of access to financial services.

Despite mounting public acceptance — legal medical and/or recreational cannabis programs are now in place in 33 states plus the District of Columbia — few or no banking services are available to the cannabis market, even in states like Illinois, which legalized medical marijuana in 2013. As a result, this fast-growing industry, which is expected to reach $22.7 billion in U.S. sales by 2023, operates largely in cash, posing an enormous public safety concern for operators, employees, vendors, and others.

Conflict between state and federal law, which treats cannabis as a Schedule 1 illegal substance, is a major barrier to entry for many financial institutions. It’s no wonder many bank executives aren’t willing to assume the risk of serving this industry if it means facing the prospect of spending time behind bars in an orange jumpsuit.

Fortunately, efforts to pass legislation that would align federal prohibition of cannabis with state laws, like those passed in Illinois, are gaining momentum. The States Act, reintroduced in Congress in April with bipartisan support, would allow states to legalize cannabis through their legislatures and enforce state laws without federal interference. Similarly, the SAFE Banking Act would protect financial institutions that work with state-legal cannabis businesses from federal prosecution.

Passage of these bills would go a long way toward minimizing the risk and uncertainty keeping many financial institutions on the sidelines of this lucrative industry, but it’s not the only thing keeping banking services at bay. Handling complex compliance requirements is the bigger obstacle.

Financial institutions are required to guard against illegal sales activity, and ensure funds generated before state legalization don’t find their way into the banking system. The Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury, has issued guidance clarifying how financial institutions can provide services to marijuana-related businesses in legal cannabis states. Many pioneering banks and credit unions are, in fact, doing a good job adhering to these guidelines and passing compliance exams. Their success, however, comes at a price. These early entrants are using expensive, labor-intensive manual processes because today’s banking systems are not designed to perform the unique due diligence required for this high-risk industry.

While Illinois state officials are working to finalize regulations for the new recreational cannabis program before the law goes into effect in January 2020, local banks and credit unions should evaluate the risks and rewards associated with serving this industry, and how they can best set themselves up for success in this new era of opportunity. Advancements in technology are creating new ways for businesses across all sectors to leverage data more effectively to serve their customers, operate efficiently, and boost their bottom lines. Financial institutions looking to bank cannabis customers should rely on similar innovations. Increasing the availability of robust financial services will enhance the legitimacy of marijuana-related businesses, address growing safety concerns and improve the reputation of all the players involved.

Noah Carey is founder and CEO of Shield Compliance in Evanston.