UK fintech unicorn Zilch has signed a definitive agreement to acquire AB Fjord Bank, a Lithuania-based digital bank, in a strategic move that will provide the company with a full European banking license and establish its continental headquarters in Vilnius.
The acquisition of Fjord Bank, which holds approximately $120 million in total assets and is authorized and regulated by both the Bank of Lithuania and the European Central Bank, represents a major milestone in Zilch's international expansion strategy and caps a transformational year for the London-headquartered payments platform.
Zilch will purchase 100% of Fjord Bank and establish Lithuania as its European headquarters, using Vilnius as its operational and regulatory platform for expansion across the continent. The deal is expected to close in the second half of 2026, subject to regulatory approvals.
The strategic rationale centers on securing a European banking license that will enable Zilch to passport its market-leading proposition across Europe with enhanced capital efficiency while broadening its product capabilities beyond its current UK-focused operations.
Philip Belamant, Co-Founder and CEO of Zilch, characterized the acquisition as a defining moment for the company as it builds a platform to power international expansion. He emphasized that the deal provides not only a strong, trusted, and fully regulated banking presence in Europe but also represents a coming together of shared visions centered on putting customers first and building financial products with the highest standards of protection and transparency.
By combining Fjord's banking capabilities and regulatory footprint with Zilch's market-leading data, AI capabilities, and unique operating model, Belamant said the company can scale a new generation of consumer finance across Europe, replicating the success it has achieved in the UK market.
Launched in 2021, Fjord Bank is a profitable and fully regulated challenger bank focusing on online consumer lending and savings products. The digital-first institution has built a strong reputation for trust, transparency, and digital delivery, serving thousands of active customers across Lithuania, Estonia, the Netherlands, Germany, Spain, and Ireland with a focus on the near-prime customer segment.
Veiko Kandla, CEO of Fjord Bank, expressed pride in what the Fjord team has built over the past five years and indicated that joining Zilch provides the perfect opportunity to accelerate growth, expand the product set, and reach millions more customers without compromising on consumer-first values.
Olav Haugland, Chairman of the Supervisory Board of Fjord Bank, noted that as custodians of the bank, the priority was finding a home that could support the next phase of Fjord's growth and ambition. He expressed confidence that Zilch and its outstanding leadership team represent that opportunity.
The acquisition comes at the end of a banner year for Zilch, during which the company successfully raised over $175 million in debt and equity funding, surpassed $200 million in annual revenue, secured a second Financial Conduct Authority (FCA) payments license, launched its landmark Zilch Intelligent Commerce AI product, and passed 5.5 million registered customers.
For Zilch, which launched in 2020 with a mission to eliminate high-cost credit, the acquisition provides critical infrastructure to support its vision of offering a new type of payments experience combining flexible ways to pay with meaningful rewards. The company uses its technology to connect its highly engaged user base with retailers and brands, helping them acquire customers more efficiently while delivering consumers personalized rewards, benefits, and discounts.
The strategic importance of securing a European banking license cannot be overstated for a fintech company with continental ambitions. According to industry analysis, the license allows Zilch to broaden its reach within the European market while gaining regulatory independence and access to lower-cost capital to fund its consumer lending products.
Lithuania, and specifically Vilnius, has emerged as a premier operational hub for post-Brexit fintechs seeking to maintain access to European markets. By leveraging Fjord Bank's existing infrastructure and regulatory authorizations, Zilch can passport its services across the entire European Union under a single regulatory framework—a significant operational and cost advantage compared to seeking individual licenses in multiple jurisdictions.
The acquisition also enables Zilch to integrate its AI capabilities directly into core banking systems, potentially accelerating credit decisions and enhancing the customer experience. The company's Zilch Intelligent Commerce AI product, launched earlier in 2025, represents a key differentiator in its approach to consumer finance.
Backed by leading global firms including AWS, Deutsche Bank, and Visa, Zilch has rapidly scaled to become what it describes as the UK and EMEA's fastest-growing fintech unicorn. The company harnesses the power of credit, AI technology, and data to improve financial outcomes for consumers and drive growth by rewiring the economics of global commerce.
The Fjord Bank acquisition follows a broader trend of fintech companies seeking to own banking infrastructure rather than relying solely on third-party partnerships. This "bank-in-a-box" approach provides greater control over the customer experience, regulatory positioning, and unit economics of financial products.
For European consumers, the combined entity promises expanded access to digital consumer finance and savings products delivered through a technology-first platform that emphasizes transparency and customer-centric design. The integration of Zilch's rewards and merchant partnerships with Fjord's banking capabilities could create a differentiated offering in the increasingly competitive European fintech landscape.
Financial terms of the transaction were not disclosed. Industry reports indicate that Fjord Bank was established by a Nordic investor pool in 2017 and received its specialized banking license from the European Central Bank in 2019 before launching services to the public in early 2021.
The completion of the acquisition will mark a significant inflection point for Zilch as it transitions from a UK-focused fintech to a pan-European financial services platform with the regulatory infrastructure and operational capabilities to compete at scale across the continent.