David Walsh

Get to know David Walsh

Tell me about Blackhawk Network and what is your role?

As Vice President of Original Content - Blackhawk Network’s owned brand gift cards - my role is to manage, protect and grow all our multi-store gift cards across EMEA. We operate in multiple markets and my role includes expanding the breadth of consumer brands on multi-store gift cards; to grow and develop the product from a customer’s perspective across our suite of regulated e-money and non-e-money products.

Innovations in developing contactless, ease of payments, fluidity of payments and acquiring new customers into the payments industry is everything that we’re interested in. Blackhawk as an organisation is a global payments company from a gift card background. We grew out of gift cards, however, we are in fund disbursements, incentives and ‘payments for good’ which includes working with public sector organisations who need a seamless payment solution to get funds into the hands of people who need them the most. Blackhawk Network’s aim is to move money to the end user, add recipients quicker, smoother and with less friction.

What do you think is the driving force behind the exponential growth in fintech? 

There are a number of different factors which have led to this, the first one being consumers. Nothing changes unless the industry is meeting the needs of the consumer. Years ago, cheques dominated as people wanted an easier way to make payments. Fintech is keeping up with the need to make faster, more efficient payment transactions. Through environmental awareness and the thought that there is too much paper and waste in the environment, consumers don’t want cash or receipts and now are more likely to use cards or online payments. I also believe the digitalisation of the financial industry and regulation push (AML, PSD2, GDPR, PCI etc) has led to the emergence of innovations in fintech and allowed for smaller enterprises that could react faster and challenged the way the financial industry has serviced customers in the past. I think that's what's driving exponential growth of fintech; consumers wanting easier, frictionless ways of moving money and an increase of regulation - the fintech industry is coming up with the innovation to provide that.

Is it possible that regulation has fuelled the growth in fintech?

Regulation is both a challenge and opportunity for the industry and has certainly played a big part in the growth of fintech. If we wish to continue to drive growth, we as an industry, have to find a way to meet the regulatory requirements whilst delivering improvements and innovation to consumers. Regulation has guided the growth of fintech, and there are clear benefits to such as consumer protection of their funds which adds stability and reliability to our industry.

Regulation aside, what do you think are the biggest challenges facing fintech today?

Investment. There have been many roll backs in tech companies, who are reducing staff because they over-expanded during the pandemic. They grew too quickly, and they expected their high growth rates to continue. I feel it's hard to get that investment now for fintech and I think that it could be one of the biggest challenges today. Fintech innovations are not always profitable in the first year or two as it's very much a volume-based, low-margin operation and, unless you've got that investment, it could be difficult which might slow innovation in fintech. However, even with its major challenges, fintech is in a better place than a lot of other industries to still get investment because there is such potential growth in it driven by the consumer. In my view, if I was in any industry, I would still want to be in fintech. Investors will see this as a short-term dip, and this will change.

How is the Payments Innovation Forum helping fintech organisations face these challenges?

It’s education and it’s awareness. PIF brings the family together to share best practices. There is much to learn about fintech and the sector and being a member of PIF helps bring awareness to what’s happening in the industry. Every time I have a conversation with a PIF member, I walk away having learnt more which allows me to guide or educate within my team and organisation to  meet those consumer demands even better. I really do think it is education, about regulations and regulatory work to ensure everybody is compliant. The worst thing that could happen to this industry is bad publicity. PIF helps elevate awareness of all the regulatory and compliance challenges, issues, and rules that we need to comply with. Unlike bigger organisations, smaller businesses may not have compliance teams, but by being a member of PIF they can stay informed and ensure they are aware of all regulatory changes.  It’s about networking and it’s about protecting the industry as it grows because if an industry grows without that kind of guidance it can go into too many different directions and that can be damaging to the industry.

How should the fintech sector respond to the cost of living crisis?

We need to respond to consumer demands. In previous years, the ability to react quickly when major events arose wouldn’t have been possible however the pandemic proved fintech already had the tools to help consumers during a global pandemic. The cost-of-living crisis is another challenge facing the consumer but I believe the fintech industry has the tools to help the consumer to minimise frictions and allow consumers manage the finances in a more effective manner.  

If you were Prime Minister for the day, what would you pledge in support of the industry?

Innovation can be very costly initially through research and development and new product and service launches therefore more supports from the Government to support innovation, new product development, and research and development within the fintech industry, would be welcome.

I think all governments should and could do more about payment disbursements to the most vulnerable in society. The government can look at greater support in this area which would improve the service to the end recipient and with the support of the fintech industry and the tools and products we have this would reduce the amount of admin time and costs spent by local councils and local governments. This in turn speeds up the movement of those supports to the end recipient and getting the help where it is needed most when it is needed most.