Creditstar Group’s UK subsidiary has obtained FCA authorization to operate as a mainstream consumer credit lender in the United Kingdom.
Following this development, Creditstar Group, based in Estonia and operating under the fintech sector, has secured FCA approval for its UK subsidiary to function as a conventional consumer credit lender. This certification signifies a shift in the group’s UK strategic direction, moving away from high-cost short-term credit products towards regulated personal loan offerings.
With the new authorization in place, Creditstar UK is now providing fully digital personal loans with a maximum amount of up to GBP 10,000 and repayment terms stretching up to 60 months. Concurrently, the company has discontinued its previous high-cost short-term credit service in the UK market and is winding down the existing portfolio.
A change in lending strategy
As per an official press release, the FCA approval marks a significant transformation for Creditstar’s operations within the UK. Previously restricted to high-cost short-term credit offerings, the group is now situated firmly within the mainstream consumer credit market, aligning its UK business model with those used across seven other European markets.
Creditstar Group has been engaged in personal lending for over 15 years. Across its operations in Europe, the company leverages Open Banking data, credit bureau information, and third-party data sources, coupled with AI-driven analytics, to evaluate affordability and creditworthiness. This infrastructure supports both its credit decision-making processes and customer journeys, from application to repayment.
The UK’s consumer credit market is one of the largest in Europe, and the stringent FCA regulatory environment has become increasingly rigorous following heightened scrutiny on high-cost credit products over recent years. Creditstar’s transition from short-term lending into mainstream personal loans reflects a broader industry trend where fintech companies are adapting to more stringent regulatory oversight.
UK operations and infrastructure
To support its expanded activities, Creditstar has set up a new office in the UK. This office will serve as an operational hub for both domestic and group-wide activities. The establishment of this local presence underscores Creditstar’s commitment to building a robust, locally anchored business rather than operating solely as a cross-border lender.
The company’s reliance on digital infrastructure, including Open Banking, credit bureau data, and automated analytics, aligns with the operational expectations UK regulators have increasingly set for lenders in fulfilling responsible affordability assessments under Consumer Duty obligations.
