Starting a bank security guard company means getting the right licenses, hiring trained guards, and securing contracts with financial institutions. You'll need a private security business license, liability insurance, and a Private Patrol Operator (PPO) license. But beyond paperwork, success comes down to solid planning, strong hiring, and smart marketing.

In this article, we’ll cover: 

• Why financial security services are in demand
• Legal and licensing requirements
• Creating a business plan
• Hiring and training guards
• How to market your company
• Managing operations
• Growing your business

Let’s start by discussing the demand for bank security guard services.

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Why is there a demand for bank security guard company services?

Because banks deal with cash, sensitive customer data, and valuable assets, they are prime targets for theft and fraud. Even with alarms and surveillance, security guards play a critical role in discouraging crime, controlling access, and handling crises and emergencies. Armed guards may even be required for added protection in high-risk areas or during cash transfers.

Besides banks, credit unions, investment firms, mortgage lenders, and cash transport services also require security. Some need full-time guards, while others hire security for high-risk locations or specific operations. 

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Legal and licensing requirements for bank security companies

Starting a bank security guard company isn’t just about hiring guards — you need the right licenses, insurance, and legal structure to operate. Here’s what you need to know:

• Business registration: If you’re deciding what kind of registration to go for, an LLC or corporation is best for liability protection. A sole proprietorship is easier to set up, but it doesn’t separate personal and business assets.
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• State-specific security firm requirements: Most states require a private security business license or a Private Patrol Operator (PPO) license. Some states also require security experience, background checks, or additional permits. Check what you need with your state’s licensing board to avoid delays.
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• Insurance and liability coverage: General liability insurance covers property damage or injuries caused by your guards. Workers’ compensation is required if you have employees because it covers on-the-job injuries. You can also get fidelity bonds to protect against theft or fraud committed by employees.
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• Compliance with banking security regulations: Banks are required to follow strict rules around fraud prevention and anti-money laundering, often guided by FinCEN. While these rules don’t apply directly to security companies, you may need to adjust your services to support a bank’s compliance efforts. It’s worth checking with potential clients to understand any specific requirements they expect you to follow.

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Creating a business plan for your bank security guard company

A solid business plan helps you define your services, budget, and revenue strategy. Here’s what to focus on:

• Defining your niche: Decide if you’ll target high-end financial institutions, local banks, or both. Later on, you can also decide if you want to expand your services to offer office building security, commercial security, or other adjacent services.
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• Startup costs and funding options: Before you begin, budget for payroll, insurance, uniforms, equipment, and licensing fees. Look into business loans or investor funding if you’re short on capital.
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• Revenue models: Decide whether to offer contract-based services, hourly rates, or subscription security packages. You can also offer a mix if you’d like.

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Essential services to offer in financial security services

Once you have a business plan in place, it’s time to start thinking about what kind of services you want to offer. Consider:

• Armed and unarmed security guards: This is the most common service for financial security companies, providing on-site protection and responding to security threats.
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• ATM security patrols: You can offer patrols to help prevent vandalism and theft at standalone or on-site ATMs.
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• Escort services for bank employees: With these services, you can help make sure that cash pickups and money transfers between branches remain safe.
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• Access control and surveillance monitoring: Guards monitor who enters and exits restricted areas like vaults, teller stations, and server rooms, making sure only authorized personnel have access. Surveillance systems add an extra layer by keeping a constant eye on entrances, lobbies, ATMs, and other key spots. 
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• Emergency response planning: It’s a good idea to train guards to handle robberies, security breaches, and other crisis situations. You can also hire guards with certifications for conflict resolution, first aid, and CPR.

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Hiring and training security guards for banks

When you’re a security company that offers guards to your clients, it’s super important to hire the right people so you can offer top-notch services to your discerning clients. Here’s what to watch out for:

• Hiring requirements: Most banks require guards to pass criminal background checks and drug tests. They also make sure that guards have a clean record to make sure they’re trustworthy and reliable. Many financial institutions may also prefer candidates with prior security, military, or law enforcement experience.
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• Training programs: Although it’s not always required, it’s a good idea for your guards to complete training in defensive tactics, de-escalation techniques, customer service, and emergency response. They also need to learn how to handle bank-specific risks, such as robbery prevention, fraud detection, and cash transport security.
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• Certifications to look for: A certified protection officer (CPO) certification is a good sign that a guard has solid security training. Many banks also require first aid or CPR certification since guards may need to handle medical emergencies. If you're hiring armed guards, they’ll need a firearm certification, which includes training and annual qualifications based on state laws.
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• Average salary for a bank security guard: Just to give you an idea of how much you should expect to pay, most bank security guards earn between $12 and $25 per hour (and an average of $19 per hour), with armed guards making more. Pay varies by location and experience.

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Marketing your bank security company

Getting your company in front of the right clients is important if you want to grow and succeed. Here’s how to build your reputation and attract banks:

• Build an online presence: A professional website, strong SEO, and active social media can help banks find and trust your company. Hire people to help make a website or use services like Squarespace if you want to save a bit and do it yourself.
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• Networking with financial institutions: Attend industry events like security expos and join financial institution associations to connect with local banks and credit unions to build relationships. These relationships could turn into contracts or referrals later on.
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• Client retention strategies: Provide top-tier service, customize security plans for each client, and regularly check in to keep long-term contracts. Remember to provide the same quality of service for every client, old or new.

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Growing your business and scaling operations

Once your company is running smoothly, it’s time to expand. You can start by:

• Expanding to multiple locations: Secure contracts with banks in different areas and set up regional management to oversee your expanded security operations.
• Hiring more guards and expanding services: Bring on more trained guards while keeping service quality high to meet client needs.
• Franchising and partnerships: You can consider working with other security firms or offering franchise opportunities to grow your brand without taking on all the risk alone.

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Start and scale your bank security guard company with Belfry

Now that you have a general idea of how to start a bank security guard company, it’s time to think about the tools you need to make sure your services are always top-notch. Belfry can help.

Belfry is an all-in-one security guard software that puts everything in one place, making it easier to manage your team while providing the transparency that your financial institution clients need.

Here’s how:

• Easy scheduling: Minimize scheduling conflicts and avoid unmanned shifts thanks to Belfry’s automated scheduling features that assign shifts based on site requirements, officer certifications, and training.
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• Increased officer accountability: Belfry has GPS tracking and NFC-based guided tours to help you make sure your guards are adhering to their post orders. Geofencing alerts help alert you if a guard leaves their designated area.
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• Digital incident reporting: Goodbye pen and paper — guards can more easily keep you up-to-date by sending digital incident reports through the Belfry mobile app. They can even attach photos or videos of evidence if needed.
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• Track certifications: Prevent license compliance lapses by inputting your officers’ licenses and certifications. Belfry tracks renewal dates automatically and sends notifications when they’re coming up.
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• Client transparency: Belfry’s real-time client portal provides your clients with access to patrol activities, incident reports, and compliance information, to help build trust.

Want to see how Belfry can help you offer quality bank security services? Schedule a free demo today.