Ember: Starling Bank’s First Acquisition in Four Years

Starling Bank has made its first acquisition since 2019 by acquiring Ember, a FinTech company based in London. Ember's tax and bookkeeping software, primarily aimed at small businesses, will be integrated into Starling's app and online banking services. This move anticipates the UK tax authority, HMRC’s, 'Making Tax Digital' initiative coming into effect by April 2026, which mandates certain small businesses and landlords to report taxes digitally and quarterly. Through this acquisition, Starling plans to offer its customers seamless compliance with these new digital tax regulations by the end of 2025. Ember, which currently provides software services to the clients of major banks like HSBC, Revolut, Barclays, and Lloyds, will see its services become exclusive to Starling by 2026. Starling will focus on incorporating Ember’s software while discontinuing its accountancy advisory services. Declan Ferguson, Starling's CFO, emphasized the bank's strategy of targeted acquisitions to bolster its offerings both in the UK and internationally. Ember's co-founders highlighted the acquisition as a milestone in integrating banking and accounting, setting a new standard for simplicity and effectiveness in financial management.