London-based Zilch has announced its intention to acquire 100% of AB Fjord Bank, a Lithuanian digital challenger bank with approximately $120 million in total assets. This acquisition marks a pivotal step in Zilch’s strategy to expand beyond the UK and establish a strong presence across Europe.
By gaining Fjord Bank’s specialized banking license from the European Central Bank, Zilch aims to passport its innovative consumer finance offerings to new markets with enhanced efficiency and regulatory compliance.
Zilch, launched in 2020 as a consumer payments platform, has become one of the UK’s fastest-growing fintechs, the company has claimed.
The Fintech firm specializes in flexible payment solutions that eliminate high-cost credit, offering rewards and serving over 5.5 million registered customers.
Backed by major players like AWS, Deutsche Bank, and Visa, Zilch has achieved milestones such as surpassing $200 million in annual revenue and securing a second FCA payments license in the past year.
Its use of AI and data-driven models has positioned it as a leader in consumer lending, particularly for near-prime segments. Fjord Bank, on the other hand, is a fully digital bank headquartered in Vilnius, Lithuania.
Established in 2017 by Nordic investors and operational since 2021 after obtaining its ECB license in 2019, Fjord focuses on online consumer lending and savings products.
With a profitable track record, it operates in countries including Lithuania, Estonia, the Netherlands, Germany, Spain, and Ireland, emphasizing transparency, and customer-centric digital solutions.
The bank’s assets and regulatory footprint seemingly make it an appealing target for Zilch’s expansion plans.
Under the terms of the deal, Zilch will establish Lithuania as its European headquarters, leveraging Vilnius as the operational and regulatory hub.
This move not only provides Zilch with a European banking license regulated by the Bank of Lithuania and the ECB but also combines Fjord’s capabilities with Zilch’s advanced AI and operating model.
The result? A scalable platform for next-generation consumer finance, enabling broader product offerings and improved capital efficiency across the continent.
Philip Belamant, Co-Founder and CEO of Zilch, described the acquisition as a “defining moment” for the company.
“This deal gives us a … regulated banking presence in Europe. By combining Fjord’s banking capabilities with Zilch’s data and AI, we can scale consumer finance across Europe, just as we have in the UK.”
Veiko Kandla, CEO of Fjord Bank, echoed this sentiment, noting that joining Zilch offers an opportunity to “accelerate growth, expand our product set, and reach more customers without compromising on our consumer-first values.”
Olav Haugland, Chairman of Fjord Bank’s Supervisory Board, added that Zilch represents the suitable partner for the bank’s next growth phase.
Strategically, the acquisition aligns with Zilch’s recent achievements, including over $175 million in funding and the launch of Zilch Intelligent Commerce AI.
However, Zilch has clarified that the move is not about entering traditional banking but rather enhancing its credit and payments ecosystem.
This distinction underscores Zilch’s focus on innovation over conventional models, potentially disrupting Europe’s consumer finance landscape.
The transaction is subject to regulatory approvals from the Bank of Lithuania and the ECB, with completion expected in the second half of 2026.
If successful, it could accelerate Zilch’s international rollout, benefiting from Fjord’s established markets and customer base.
For European consumers, this means access to more flexible, transparent financial products amid rising demand for digital solutions.
This deal highlights the consolidation in fintech, where UK players like Zilch seek continental licenses post-Brexit to tap into the EU’s single market. As Zilch integrates Fjord, the combined entity could redefine near-prime lending, prioritizing AI-driven personalization and customer protection.
With fintech valuations rebounding, this acquisition positions Zilch as a key player in Europe’s financial ecosystem as we head further into 2026.
