Starling Bank acquires Ember Fintech Deal for the first time in four years
Starling Bank has completed its first acquisition in four years, a London-based Fintech that specializes in digital tax and accounting software for small businesses.
The deal qualifies for the final closing and will integrate Ember’s HMRC-approved tax and bookkeeping tools directly into Starling’s mobile app and online banking platform by the end of 2025.
The move comes ahead of the deadline for HMRC to conduct tax figures in April 2026, which will require the sole merchant and landlord to receive salaries above a certain threshold in order to use approved software and their annual self-assessment to file quarterly digital tax returns using approved software.
Starling estimates that it will affect up to 780,000 sole proprietors and landlords. By embedding Ember’s software, Challenger Bank hopes to provide a seamless transition for small and medium-sized enterprise customers.
Starting in 2026, Ember’s software will become the exclusive to Starling Bank customers. Its partnership with HSBC, Revolution, Barclays and Lloyds will end, and Starling will also cease Ember’s separate accounting consulting services.
Starling Group Chief Financial Officer Declan Ferguson said the deal highlights the bank’s ambition to expand its ecosystem through selective acquisitions.
“We are natural fintech consolidators, so targeted acquisitions like Ember will be a key part of our strategy as we continue to develop Starling’s Starling Bank and Engine overseas,” he said.
“Just like the fleet mortgages we bought in 2021, I believe Ember’s top-notch tools will be a great addition to Starling Bank’s products.”
Ember co-founders Daniel Hogan and Aaron Shaw said they set up the company to simplify accounting for small business owners.
“We created Ember to relieve pain for small businesses to help people make faster and clearer financial decisions without stress,” they said.
“Developing tax figures creates a real appeal for SMEs, and Ember offers a solution for that. Our deal with Starling Group will mean we set new standards for how banks and accounting work together – seamlessly integrated and refreshing.”
The acquisition marks the first acquisition since Starling purchased a fleet mortgage in 2021, and signals a merger in the UK’s fintech sector will continue.
For small and medium-sized enterprises, this transaction can be proved in a timely manner. With digital tax compliance looming, Starling positioned itself as a one-stop shop for banks and accounting, a move that could make it a bracket than competitors to the UK’s small business community to achieve its fundamental shift to HMRC reporting.
