Tuesday, April 23, 2024

Daxsen Bank to become the world’s first entertainment bank

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The launch of Daxsen Bank, as the neobank of the Ecuadorian business conglomerate The Daxsen Corp, will be the beginning of a unique financial service for the entertainment industry. 

Within its app, the digital bank will implement a new section called My Art, where any type of artist can access credits based on their level of royalty production earned from any public distribution.

Daxsen Bank will obtain the information of each applicant artist through agreements and connections with distributors. In this way, the bank will automate its bank advances, so that their respective approvals and deliveries are executed immediately and automatically after the artist’s request.

This process will be similar to an artist’s request for an advance on royalties to a record label, where artists usually have to assign their rights or grant a license for an extended period of time in exchange for the label advancing its royalty collections.

Daxsen Bank, while not a record label, will bring a brand new form to request royalty advances on its app, through loans related to the label’s or artist’s royalties. The financial institution will grant these loans based on the information it obtains from its agreements with the different record labels.

Currently, Daxsen Bank announced that it will seek approaches with record distributors such as The Orchard, Symphonic Distribution, AWAL, Spinnup, Tunecore, CD Baby, all of which maintains labor relations to The Daxsen Corp and its Daxsen Music Group division.

The proposal of the Ecuadorian neobank will help famous musicians to be able to increase their income to an amount that justifies their volume of reception. Minimal earnings, such as those provided by Spotify with one dollar for every 250 plays of a song and every presence in playlists of millions of followers, would go up if artists access loans in DaxsenBank, making the music industry business more profitable through streaming platforms.

On the other hand, DaxsenBank loans will act as a mechanism to help solve complicated situations, where the artist is in conflict with his label and needs the money to step aside and create his own project. The perfect exemplification of these cases is Taylor Swift, who in 2019 saw the entire catalog of her songs pass into the hands of someone outside her career in a corporate operation against which she could do nothing (her record company Big Machine Records was absorbed by Ithaca Holdings).

This  American singer waited two years to re-record her first albums and release them for sale in order to generate income from her musical successes. She used her personal assets, but an artist of any size could apply for a loan with Daxsen Bank to pursue a project in the independent scene, where stars like Macklemore & Ryan Lewis and Lil Dicky have emerged.

The same methodology that applies to music artists and record labels can be applied to any artist who develops monetized content in public distribution, such as a painter and an art gallery or an actor and a film studio. Daxsen Bank will work to reach agreements with as many distributors as possible to allow any type of artist to enjoy the benefit of an immediate loan on their app, as its goal is to help any artist who needs the amount of money commensurate with their work or proportional to its success. 

This could avoid situations such as those experienced by the actors of one of the most successful audiovisual projects in history, according to the Guinness Book of Records: the Colombian soap opera “Betty La Fea” (Ugly Betty in Spanish). With 20 years of validity, this work for television has not lost popularity and has even led the charts of the streaming platform Netflix. However, its actors have never received royalties for their participation in the telenovela, according to Colombian actress Ana María Orozco, who played the main character.

On other hand, the bank will open the possibility for artists who have business relationships with distributors not registered in its operations. For that, Daxsen Bank will enable a function in its app, where each requesting artist will be able to scan or transfer their royalty report for approval. This would apply to artists who develop content independently or through support with independent distributors, such as independent art galleries.

This new service will make Daxsen Bank the first bank to support artists, standing out as the only financial institution that focuses on the entertainment industry an follows the same line of its business conglomerate, investing in film, music, and events, but on a larger scale with more capital, according to Dave Sanz, CEO and Founder of The Daxsen Corp.

The project of Daxsen Bank will start in 2022 and will have two phases. The first will take place in its first year of operation and will focus on attracting local clients and promoting its products. The second will begin in the second year of operation and will be aimed at expansion, as Daxsen seeks to generate correspondents in different countries, acquire portfolios from other financial institutions, and expand the transactional network to provide services to third-party institutions.

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