Fintech firm Zilch has agreed to acquire AB Fjord Bank, a Lithuania-based institution, for an undisclosed sum. 

Fjord Bank has approximately $120m in assets.  

It holds authorisation and regulation from the Bank of Lithuania and the European Central Bank. 

With this deal, Zilch will obtain a European banking licence, allowing it to broaden its reach within the European market.  

The bank plans to acquire full ownership of Fjord Bank and set up its European headquarters in Lithuania, positioning Vilnius as its operational centre for further expansion. 

Fjord Bank, established in 2021, operates as a challenger bank specialising in digital consumer lending and savings products. It is described as a “profitable” business.  

Fjord Bank CEO Veiko Kandla 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.” 

Through this acquisition, Zilch aims to offer its financial services more widely across Europe while adding to its portfolio of products. 

Over the past year, Zilch has reported raising over $175m through debt and equity funding, surpassing $200m in annual revenue, and obtaining an additional payments licence from the UK’s Financial Conduct Authority (FCA). 

It also launched a new AI-powered product and reached 5.5 million registered customers over this period. 

The transaction awaits regulatory approval and is anticipated to be finalised in the latter half of 2026. 

Zilch CEO and co-founder Philip Belamant said: “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, just as we have done in the UK.”