No More “Stupid Deals”: Why Dave Stewart Launched First Artist Bank

Former Eurythmics member Dave Stewart has proved his talent for innovation remains undiminished, with the recent announcement of his plans to launch a new bank designed specifically for musicians and other artists.

Dave Stewart keeps expanding his personal portfolio.

“First Artist Bank,” as the organization will be known, has the avowed intention to prevent musicians from doing “stupid deals.” It will supply funding, manage artists digital assets and intellectual property, as well as form a knowledge bank for artists.

Stewart’s partner on the project is Michael Phillip, a legendary banker who was one of the architects of Credit Suisse’s expansion in the Middle East, before leaving to start his own investment management and advisory service.

Together, Dave Stewart and Michael Phillips make a formidable team, combining a lifetime’s knowledge of the music industry with the financial acumen to form a global bank. In his keynote speech at the Reeperbahn festival and conference in Hamburg, Stewart pointed to America’s long-standing “Farmers Bank” as the inspiration for the project.

From Farm to Art

Founded in the late 19th century, the Farmers Bank was founded on the basis that the traditional banking industry was not fulfilling the needs of the agricultural community: since its inception it’s offered a lifeline to farmers via carefully tailored financial advice specific to their industry. Stewart’s “First Artist Bank” aims to follow in its footsteps, offering musicians a more targeted financial support than conventional banking.

“Farmers used to have problems such as droughts or their tractor breaking,” Stewart said. “They all had different banks that would lend them $1,000 but take a thousand acres – sort of like the music business, where they lend you money but take the rights [to your music].

“It’s a bank for artists, creators and their fans,” he added, explaining that the bank’s credit cards will include a points scheme with rewards including Glastonbury tickets, albums and theater tickets.

Stewart, never known for his understatement, announced to Reeperbahn that the bank “will be ‘the beginning of a new world order”, explaining FAV (First For Artist Ventures) will further enable artists through a combination of investments and partnerships. ‘”It’s a global creative community bank.” Stewart said.

Industry buzz has been fast and furious since Stewart’s unveiling, with some pundits heralding the arriving of a new musician-centric bank as the healthy new growth of an industry finding means to survive despite the much documented strains of the digital age.

A Financial Transformation

Whatever the outcome, Dave Stewart continues to forge new ground for himself: adding business tycoon to his already impressive list of achievements. ‘ “First Artist Bank is a solution to the old problem of artists and their wares being taken for free,” he said to the Independent, lamenting the two or three year gap it can sometimes take for artists to be paid for their work. “There’s an incredible amount of paper in the trail of revenues.”

Dave Stewart’s musical heirloom is already impressive. If First Artist Bank is successful, however, he may well leave a legacy of greater value even than his recorded work. Should FAV truly empower musicians to navigate their way through the labyrinth of small print which lies between creative work and a paycheck, he will have done something unique.

Jane McInness is a music industry analyst for Imagem Production Music UK.

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