Starling Bank is acquiring a UK accounting startup to enhance services for small business customers. Ember, founded in London in 2018, offers tax and bookkeeping software and is supported by investors like Valar Ventures, Viola Fintech, and Shapers. The acquisition, reportedly under £10 million, will allow Starling to provide an “all-in-one solution” for its 500,000 SME customers, streamlining everything from banking transactions to tax submissions. This move is in anticipation of the upcoming “Making Tax Digital” regulations, requiring businesses with incomes over £50,000 to submit quarterly financial reports to HMRC. Starling plans to incorporate Ember’s software by late 2025, ensuring compliance with the new rules. Starling holds a nine percent share in the UK small business banking market. Currently serving clients of HSBC, Revolut, Barclays, and Lloyds, Ember’s software will become exclusive to Starling, ending Ember’s existing advisory services. Adeel Hyder of Starling praised Ember’s interface for simplifying accounting tasks. Ember co-founders, Daniel Hogan and Aaron Shaw, remarked on the partnership’s potential to revolutionize integrated banking and accounting solutions.
