Consumer payments platform Zilch has signed a deal to buy Lithuanian challenger bank Fjord Bank.

The move marks a major strategic move for the company, providing it with a European banking licence for its international expansion.

As part of the move, London-headquartered Zilch will purchase 100 per cent of the neobank, establishing Lithuania as its European headquarters.

Launched in 2021, Fjord Bank is a fully digital bank focused on online consumer lending and savings products.

The firm, which is authorised by the Bank of Lithuania and the European Central Bank, has approximately $120 million in total assets.

The move comes after Zilch raised over $175 million in debt and equity funding, surpassed $200 million annual revenue, and secured a second Financial Conduct Authority (FCA) payments licence over the past 12 months.

During this time, the company has passed 5.5 million registered customers.

The transaction is expected to complete in the second half of 2026, subject to regulatory approvals.

“This is a defining moment for Zilch as we build a platform that will power our international expansion," said Philip Belamant, co-founder and chief executive of Zilch. "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."

He added that by combining Fjord’s banking capabilities and regulatory footprint with Zilch’s data, AI capabilities and operating model, the company can scale a "new generation of consumer finance across Europe".

Veiko Kandla, chief executive of Fjord Bank, said: “We are incredibly proud of what the Fjord team has built over the past five years. 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.”

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