Zilch Buys Lithuanian Lender to Secure European Banking Licence and Accelerate Expansion

Introduction

UK-based fintech Zilch has signed an agreement to acquire AB Fjord Bank, a fully regulated Lithuanian bank, in a strategic bid to obtain a European banking licence that will serve as the foundation for the company’s continental expansion and product growth. The deal is expected to complete in the second half of 2026, pending regulatory approvals.

This move marks a defining moment for the fintech unicorn — known for its buy-now-pay-later (BNPL) services and consumer payments platform — as it seeks to scale beyond the UK and tap into the broader European market with a stronger regulatory and operational base.

Deal Overview: What’s Being Acquired

Zilch will acquire 100 % of AB Fjord Bank, a Lithuania-based bank authorised and regulated by both the Bank of Lithuania and the European Central Bank (ECB). The bank holds approximately $120 million in total assets and has established operations focusing on online consumer lending and savings products.

As part of the acquisition:

• Zilch will establish its European headquarters in Vilnius, Lithuania, making the city its operational and regulatory hub for EU expansion.

• The Lithuanian banking licence will allow Zilch to passport its financial services across all EU member states, removing the need to secure separate licences in multiple jurisdictions.

• The acquisition will broaden Zilch’s product capabilities — especially in regulated lending and deposit-taking — and enable deeper integration with European regulators and financial systems.

The acquisition price has not been officially disclosed, but multiple sources indicate the deal is valued at around $38 million.

Strategic Rationale: Why This Matters for Zilch

1. Access to a European Banking Licence

Obtaining a banking licence within the EU is one of the most critical barriers for fintech platforms that want to offer a full suite of financial services across Europe. A licence from a regulated EU bank enables:

• Single European Market passporting — allowing regulated activity throughout the EU with minimal additional approvals.
• Deposit-taking powers — enabling Zilch to scale products like savings accounts and consumer loans with enhanced capital flexibility.
• Improved operational resilience — strengthening regulatory credibility with both customers and partners.

By acquiring Fjord Bank — already regulated and profitable — Zilch accelerates its access to these capabilities rather than spending years applying for a licence from scratch.

2. Expansion Beyond BNPL

Zilch started as a buy-now-pay-later and payments platform focused on retail consumers. However, with 5+ million registered customers, expanding into banking services opens the door to a broader array of offerings, such as:

• Consumer lending products
• High-yield savings accounts
• Euro-denominated accounts and cards
• Full suite of digital banking features

This expansion positions Zilch not just as a payments provider but as a more comprehensive consumer finance provider across Europe.

3. Operational and Regulatory Benefits

Lithuania has become a recognised fintech hub within the EU due to its relatively streamlined licensing processes and supportive regulation. Several global fintechs — including Revolut, Curve, and others — have established regulated entities there to access the EU market.

Establishing Vilnius as its EU base gives Zilch:

• A central regulatory relationship with the Bank of Lithuania and ECB
• A base from which to scale operations into Estonia, Germany, Spain, Ireland, the Netherlands and beyond, where Fjord Bank already has established reach.

Leadership Commentary and Vision

Philip Belamant, co-founder and CEO of Zilch, described the acquisition as a “defining moment” for the business, underscoring its ambition to build a next-generation consumer finance platform across the EU. Belamant noted that combining Fjord Bank’s regulated foundation with Zilch’s data, AI and technology capabilities would enable rapid, capital-efficient expansion.

Fjord Bank’s leadership also welcomed the move. Veiko Kandla, CEO of Fjord Bank, highlighted that joining forces with Zilch would accelerate growth and broaden the product ecosystem while staying true to Fjord’s consumer-centric values.

Broader Fintech Context: Expansion via Banking Licences

Fintech companies increasingly acquire or partner with existing banks to secure regulatory licences, especially within the EU. Traditional application pathways can be lengthy and costly, prompting many fast-growth fintechs to opt for acquisitions. Recent moves in this space include Monzo securing an Irish licence and Revolut’s banking operations in Lithuania.

Zilch’s acquisition aligns with this broader trend, enabling the company to compete more effectively with pan-European challengers and neobanks.

Expected Close and Regulatory Approvals

The transaction is expected to complete in the second half of 2026, after receiving regulatory approvals from European authorities, including the European Central Bank and Lithuanian regulators. Zilch is preparing to operationalise its European services from Vilnius once the deal closes.

Conclusion

Zilch’s acquisition of Lithuania’s Fjord Bank marks a pivotal step in its evolution from a UK payments and BNPL provider into a regulated European financial powerhouse. By securing a European banking licence and establishing an EU headquarters in Vilnius, Zilch is poised to expand its products and services across borders with enhanced capital efficiency and regulatory credibility. With an expanding customer base and a growing suite of financial products, the fintech is setting the stage for its next major growth chapter.

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