The thing with creatives is that we’re almost always horrific credit risks to standard banks because no one ever gets a regular salary. Just as one example you could average £40k a year, but the only bit a bank would consider is the bar job you did when from Jan-Apr which gave you a regular salary. The rest of that £40k that you earned on TV shows, theatre, adverts whatever, they often would just ignore even though you earned it.
My other half is actually one of those pesky online influencers, which pays a significant monthly sum from sponsorships and ad rev, and is only one of many revenue streams she has, but literally no one would count it because its not considered a salary. Say you work in the creative industries and everything from insurance to finance instantly becomes far more expensive because you’re considered to be in a risky profession, whatever job you actually do, and however much money you actually have.
The other part of First Artist Bank was around project funding. The way things are going people are not wanting to go to a record label and hand over the rights to their music (just using music as an example) for the rest of their life, make no money themselves, and still owe the label for years, just to be able to record some songs.
That either means getting angel investors to cover the costs of producing an album, going to a media financier; someone like Ingenious Group who i work with a lot, who may help but generally deal with financing things like Avatar and Star Wars so are less likely to do smaller deals, or trying to go to a high street bank and saying “i would like to make music, please give me £200k.” and being laughed out by some bank manager with no clue. So the idea was to make funding easier for artists to obtain, where things can be assessed properly by people who know what they’re looking for.
Part of it was that it was meant to work in tandem with Dave and Paul Allen’s other networks and ventures, for example the first branches (Yes, it was meant to have branches, but not in a legacy bank sense) were meant to be in The Hospital Club, their members clubs in London and LA, the idea being that you could work together to create, be it music, film or whatever, in the club, then work with FAB to fund the project you’re working on, removing the need to have to spend months/years trying to secure external funding.
Sorry @Ad13, a bit of an essay!
Any better @Graham It’s where to put the breaks that’s the issue!