London-based payments platform Zilch has signed an agreement to acquire AB Fjord Bank, a Lithuania-based challenger bank, in a move designed to secure a European banking licence and accelerate its international rollout.
The acquisition, announced on 7 January 2026, involves Zilch purchasing 100 per cent of Fjord Bank, which currently holds approximately $120million in total assets. The deal is expected to complete in the second half of 2026, subject to regulatory approvals.
A Gateway to Europe
The primary strategic driver behind the acquisition is Fjord Bank’s specialized banking licence, authorized by the European Central Bank (ECB) and the Bank of Lithuania. This licence will allow Zilch to passport its services across the European Economic Area (EEA), effectively removing regulatory hurdles for expansion.
As a consequence of the transaction, Zilch will establish Lithuania as its European headquarters, using Vilnius as its operational hub for the continent.
Philip Belamant, co-founder and CEO of Zilch, described the move as a “defining moment” for the company: “Not only does the deal give us a strong, trusted and fully regulated banking presence in Europe, but it represents a coming together of shared visions… By combining Fjord’s banking capabilities and regulatory footprint with Zilch’s market-leading data, AI capabilities and unique operating model, we can scale a new generation of consumer finance across Europe.”
Integrating a Profitable Challenger
Launched in 2021 by a Nordic investor pool, Fjord Bank is a profitable digital bank focusing on online consumer lending and savings products. It currently operates in Lithuania, Estonia, the Netherlands, Germany, Spain, and Ireland.
Veiko Kandla, CEO of Fjord Bank, commented: “Having established the business and successfully scaled it, the time is now right to become part of a bigger mission. Joining Zilch provides the perfect opportunity, enabling us to accelerate growth, expand our product set and reach millions more customers without compromising on our consumer-first values.”
The announcement caps a significant period of growth for Zilch. Over the past year, the company has raised over $175million in debt and equity funding, surpassed $200 million in annual revenue, and secured a second Financial Conduct Authority (FCA) payments licence in the UK.
With over 5 million registered customers, the “fintech unicorn” is now looking to replicate its UK success on the continent by leveraging Fjord’s infrastructure to broaden its product capabilities and enhance capital efficiency.