Creditstar Group's UK subsidiary has received FCA authorisation to operate as a mainstream consumer credit lender in the UK.
Following this announcement, Creditstar Group, an Estonia-based fintech, has secured authorisation from the Financial Conduct Authority (FCA) for its UK subsidiary to operate as a mainstream consumer credit lender. The approval marks a shift in the group's UK positioning, moving away from high-cost short-term credit towards regulated personal lending products.
Following the authorisation, Creditstar UK is offering fully digital personal loans of up to GBP 10.000 with repayment terms of up to 60 months. The company has simultaneously ceased its previous high-cost short-term credit offering in the UK market and is running off the existing portfolio.
A change in lending model
According to the official press release, the FCA approval represents a material change in how Creditstar operates in the UK. Previously limited to a high-cost short-term credit portfolio, the group is now positioned within the mainstream consumer credit segment — a move that aligns its UK operations with the broader model it runs across seven EU markets.
Creditstar Group has been active in personal lending for more than 15 years. Across its European operations, the company uses Open Banking data, credit bureau information, and third-party data sources alongside AI-driven analytics to assess affordability and creditworthiness. This infrastructure underpins both its credit decisioning and customer journey, from application through to repayment.
The UK consumer credit market is among the largest in Europe, and the FCA's regulatory framework is widely regarded as one of the more demanding for consumer lenders, particularly following increased scrutiny of high-cost credit products in recent years. Creditstar's exit from that segment and entry into mainstream lending reflects a broader industry trend of fintechs repositioning under tighter oversight environments.
UK operations and infrastructure
To support its expanded activities, Creditstar has established a new office in the UK, which will function as an operational hub for both its domestic and group-wide activities. The move signals a commitment to building a durable, locally anchored presence rather than operating purely as a cross-border lender.
The group's use of digital infrastructure — combining Open Banking, bureau data, and automated analytics — is consistent with the operational model that UK regulators have increasingly expected lenders to demonstrate for responsible affordability assessments under Consumer Duty obligations.
Creditstar's entry into mainstream UK consumer credit adds to a growing cohort of European fintechs seeking to scale regulated lending businesses in the UK following a period of regulatory consolidation in the high-cost credit sector.
