Zilch Plans to Acquire Fjord Bank to Accelerate European Expansion

Consumer payments platform Zilch plans to acquire Fjord Bank to gain a European banking license that will enable Zilch to accelerate its expansion across Europe.

The transaction is expected to close in the second half, subject to regulatory approvals, the companies said in a Wednesday (Jan. 7) press release.

Fjord Bank is based in Lithuania, has about $120 million in total assets, and is authorized and regulated by the Bank of Lithuania and the European Central Bank, according to the release.

Upon the closing of the transaction, London-based Zilch will establish Lithuania as its European headquarters and use the country’s capital, Vilnius, as its operational and regulatory platform as it expands across the continent, the release said.

Zilch was launched in 2020 and now has more than 5 million registered customers, per the release.

“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,” Zilch Co-Founder and CEO Philip Belamant said in the release.

Fjord Bank was launched in 2021, is profitable, and is a challenger bank that focuses on online consumer lending and savings products, according to the release. It serves thousands of active customers and operates in six countries: Lithuania, Estonia, the Netherlands, Germany, Spain and Ireland.

“Having established the business and successfully scaled it, the time is now right to become part of a bigger mission,” Fjord Bank CEO Veiko Kandla said in the release. “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.”

Zilch said in December that it secured a payment services license in the United Kingdom from the country’s Financial Conduct Authority (FCA) and would be able to build more payment methods in-house.

“This is a major step change for Zilch, bringing us firmly into the payments tent and giving us a true seat at the table to shape the ecosystem,” Belamant said at the time.

The company said in November that it raised $175 million in debt and equity, and that the new funding would go toward marketing efforts, product development, improvements to its platform, and the exploration of merger and acquisition possibilities.