As Jamaica celebrates Reggae Month, JN Bank’s Gillian Hyde says greater collaboration within the ecosystem that powers the creative industry- including among financial institutions- is needed to support entrepreneurs and professionals in the cultural space.
Speaking ahead of the JN Talking Reggae Symposium for this Monday, February 28, she said persons operating in the creative industry continue to experience difficulty when accessing capital, and noted that financial institutions are critical players in the development of the industry.
“The creative industry has faced a number of challenges when engaging with financial institutions over the years”, explained the deputy managing director with oversight of the bank’s Small Business Loans division. “Institutions’ abilities to make credit decisions have been impacted by several factors, such as the absence of documented plans and robust financial management practices supporting the ability to repay loan facilities as well as the risk factors affecting the industry.”
Mrs Hyde, who will be one of several panellists at the symposium, also pointed out that insufficient collateral and an inability to aptly monetise intellectual property remains a challenge.
She underscored that the creative industry remains an important contributor to the Jamaican economy, given its diverse makeup, which extends beyond musicians and artistes, to include vendors, makeup artists, fashion designers and several other trades.
In 2018, citing data from the IMF’s World Economic Outlook GDP Estimate for Jamaica, Minister of Culture, Gender, Entertainment and Sport, Hon. Olivia Grange, highlighted that the creative industries generated some US$730 million to the Jamaica’s gross domestic product, and that music represented close to two per cent of that total.
Mrs Hyde noted that the creative industry contributes immensely to the country’s tourism product and is a key feature of Brand Jamaica, and therefore, resolving the problem of financial access for its players must be a priority.
“Brand Jamaica reverberates through the entire world through our rich and diverse culture. People all over the world know of our music, our dances, our language, our food and more,” she said.
“For a long time, the creative industries have shared the Brand Jamaica experience beyond our shores and, as the digital footprint broadens, Brand Jamaica is expected to become even stronger.”
The micro and small business banking expert noted that JN Bank is actively building meaningful relationships with the creative industry to improve access to financial services, pointing out that special loan programmes that provide unique discounts on rates are being developed.
“Special partnerships have also been established to mitigate against some of the challenges previously identified with respect to the security requirements”, Mrs Hyde stated. “Through the Development Bank of Jamaica’s technical voucher programme, we are excited to promote and support capacity building programmes that will assist our ’creatives’ with documenting robust plans that will ensure their vision can be supported with excellent credit products.
The JN Group will be seeking to ensure active association with the creative industry, in terms of advocacy, sharing knowledge, capacity building and driving the ecosystem to include access to a suite of financial services,” she noted.
Mrs Hyde said The Jamaica National Group has been and remains an avid supporter of the growth of the creative industry and orange economy over the years through its mounting of various events, and its establishment of collaborations and partnerships with various groups. Its organisation of the JN Talking Reggae Symposium to culminate Reggae Month celebrations is a natural fit.
She noted that, beyond the bank, JN Group will also be ensuring access to key programmes and products to support and impact the overall development of the creative industry and the growth of their families through insurance offerings, pension planning programmes, as well as savings and investment opportunities.
To participate in the symposium, persons may register via the JN Group website, www.jngroup.com. The event will also air live on Television Jamaica at 8:30 p.m.
