Do Banks and Credit Unions Need Music Licenses?
Yes. Banks and credit unions need music licensing when they play copyrighted music in public areas like lobbies, teller areas, and waiting rooms.
Personal streaming services like Spotify do not include the rights needed for normal business use. A licensed music for business service like Custom Channels can provide both the music and the commercial rights through one approved platform.
Our music licensing guide explains the basics. Music licensing can be easy to miss because background music feels simple. Someone connects a phone, opens Spotify, and the lobby sounds better. But where that music comes from matters. A personal streaming account and a licensed business music service are not the same thing.
Why Does Music Licensing Get Overlooked in Banks?
Music licensing for banks can be easy to overlook. One branch uses the approved music system. Another uses Spotify. Another turns on the radio. Someone else connects a personal phone. That is how bank music licensing can get messy across different locations.
For banks, the question is not only, “Do we have licensed music?” The better question is, “Do we know what every branch is actually playing?”
That is what makes music licensing for financial institutions a little different. The license matters, but so does knowing which music source every branch actually uses.
What Are ASCAP, BMI, SESAC, and GMR?
ASCAP, BMI, SESAC, and GMR are performing rights organizations, often called PROs. They represent songwriters, music publishers, and musical works.
The important part is simple: they don’t all represent the same music, and songwriters or artists can move between PROs over time.
| PRO | What It Covers | Custom Channels |
|---|---|---|
| ASCAP | Songwriters and publishers | Included |
| BMI | A separate music catalog | Included |
| SESAC | Its own music catalog | Included |
| GMR | A selective music catalog | Included |
An ASCAP license for banks does not cover every work represented by BMI, SESAC, or GMR. A BMI license for banks does not cover ASCAP works. A branch team shouldn’t have to research music rights every time somebody adds a song. That is one reason licensed music for business services exist.
Can a Bank Play Spotify?
No. A personal Spotify account is not licensed to play background music in a bank. Spotify, in both the free and premium versions, is made for personal listening. It does not give a bank the commercial rights needed to play music for customers.
The problem gets bigger across multiple branches. Corporate may think every location follows one music policy while employees use different Spotify accounts, phones, tablets, and playlists. Now you have a licensing problem and a brand-control problem.
Already Have a Spotify Playlist Your Bank Likes?
With Custom Channels, you can use your Spotify playlist as the starting point. The Custom Channels Spotify playlist import tool matches available songs from your Spotify playlist to the Custom Channels catalog. You can edit the playlist and play the music directly through Custom Channels, where it is delivered as licensed music for business.
Spotify starts the idea. Custom Channels becomes the licensed business music service that plays it.
Ready to Get Your Bank Music Fully Licensed?
Custom Channels gives banks and credit unions one approved platform for licensed music, playlists, locations, and branch control. Whether you run one branch or 1,000, we can support your footprint and help you understand what is covered.
How Do Banks Manage Licensed Music Across Many Branches?
For multi-location banks, music licensing is about maintaining control over what every branch is playing. Custom Channels works with regional and nationwide financial institutions, including a banking customer with more than 1,200 locations. At that scale, corporate can’t rely on each branch to make its own music decisions. One location may use the approved system while another switches to Spotify, a personal phone, or the radio.
One platform gives the bank an approved music source, visibility across locations, scheduling, and control over what each branch can play.
A music policy only works when every branch actually uses the approved system.
Banks already use this approach with other technology and vendors. Music should not be any different. For a large branch network, commercial music for banks should be easy to control from one place instead of being managed by individual employees.
Can Custom Channels Support Banks in Multiple Countries?
Yes. Custom Channels supports licensed business music across the United States and around the world.
Licensed music, wherever you do business.
Music licensing works differently from country to country. In the United States, Canada, and Mexico, complete music licensing coverage is included with the Custom Channels service. In Australia and New Zealand, we provide complete coverage through OneMusic.
Custom Channels can also stream music to businesses in markets around the world. In some countries, local rules require the business to pay certain performing rights fees directly. When that happens, we work with you to understand what is required and what Custom Channels can cover.
If your bank operates in multiple countries, talk to us. We can support your global music program and help make sure each location has the right licensing for its market.
What About TVs and Digital Signage in Banks?
A screen does not automatically license the audio coming through it. A business music service covers the music it provides. It does not automatically cover unrelated TV audio, consumer streaming accounts, DJs, live performances, or other music sources.
Ask one simple question: where is the music coming from? If your branches use screens and sound together, see how digital signage and music work together in bank branches.
Can a Bank Play the Radio?
Sometimes. Copyright law includes exemptions for certain radio and television uses. The rules can depend on the business, its equipment, and how the audio reaches customers.
Do not assume every radio setup in every branch qualifies. If your bank plans to rely on an exemption, confirm that the setup meets the rules.
What Should You Do If a PRO Contacts Your Bank?
Do not ignore it. Start by checking what music is playing in that branch and which service provides it.
- Identify the branch: Which location received the notice?
- Check the source: Is it Custom Channels, Spotify, radio, TV, or something else?
- Confirm the account: Is the approved music service active?
- Check employee devices: Is anyone using a personal phone or streaming account?
- Check other branches: Is the same thing happening elsewhere?
- Gather documentation: Confirm what your music provider covers.
If Custom Channels supplies the music, contact our team. We can verify the account and explain what the service covers. You can also read our guides to Global Music Rights and ASCAP licensing letters.
Does Licensed Bank Music Have to Sound Boring?
No. Licensed music doesn’t have to mean elevator music. Banks can still play familiar contemporary music, relaxed background music, or custom playlists that fit the brand. Good music and proper licensing can work together.
What Is the Simplest Way to Handle Bank Music Licensing?
Use one approved music for business platform and make sure every branch uses it. That gives the bank one approved music source. The service includes the commercial licensing for the music it delivers, along with control across locations. If your team already loves a Spotify playlist, bring it with you. You do not need to start over.
Licensed music should become one less risk to think about, not another process to manage.
Frequently Asked Questions
Do banks need a music license?
Yes. Banks that publicly play copyrighted music generally need the proper commercial rights unless a specific exemption applies.
What kind of music license for banks is needed?
A bank needs the rights that cover the copyrighted music it plays. A licensed business music service can simplify this by including the commercial rights for the music delivered through the service.
Can banks use Spotify?
No. Personal Spotify accounts are for personal, non-commercial listening. They are not a replacement for licensed music for banks.
Do banks need ASCAP, BMI, SESAC, and GMR?
A bank needs the proper rights for the music it plays. ASCAP, BMI, SESAC, and GMR represent different music, so coverage from one organization does not automatically cover the others.
Does bank lobby music need to be licensed?
Yes. Bank lobby music licensing applies when copyrighted music plays publicly in that space unless a specific exemption applies.
Can one music service cover multiple bank branches?
Yes. Custom Channels provides licensed music and centralized management for banks and credit unions with one branch or nationwide networks.
Can Custom Channels support banks outside the United States?
Yes. Custom Channels supports businesses in multiple countries. Licensing rules vary by market. Our team can explain what the service includes and whether a location needs to handle any local fees.
Written by Mark Willett, Director of Music Strategy, Custom Channels
