Starling Bank Acquires Ember: A Strategic Move Ahead of Making Tax Digital
Starling Bank has taken a significant step in the UK fintech sector. The bank has agreed to acquire Ember. Ember is a London-based tax and bookkeeping software provider. This acquisition, announced on 19 August 2025, marks Starling’s first major purchase since Fleet Mortgages in 2021. The deal is valued at under £10 million. It is designed to enhance Starling’s offerings for small and medium-sized enterprises (SMEs). The aim is to position the bank as a one-stop solution for business financial management.
Ember’s platform offers numerous features. These features include automated bookkeeping, tax filing, invoicing, and payroll management. The platform will be fully integrated into Starling Bank’s app and online banking services. This integration aims to give small business owners a seamless experience. It allows them to manage their finances efficiently and reduces administrative burdens. The UK government’s Making Tax Digital (MTD) initiative requires online tax reporting from April 2026. This makes the timing of the acquisition strategic. Ember’s HMRC-recognised software ensures Starling customers will be fully equipped to comply with the new regulations without additional effort.
Prior to the acquisition, Ember served customers across several major UK banks, including HSBC, Revolut, Barclays, and Lloyds. Following the acquisition, Ember’s services will become exclusive to Starling Bank customers starting in 2026. At the same time, Starling plans to discontinue Ember’s accountancy advisory services as part of the integration. This decision enables the bank to focus on providing a streamlined digital experience. It also establishes Starling as a leading provider of integrated financial management solutions for SMEs.
The acquisition marks a strategic pivot for Starling Bank. It seeks to consolidate fintech capabilities. The goal is to expand its market share in SME banking. By incorporating Ember’s software directly into its platform, Starling can offer a unified solution. This solution allows business owners to handle banking, accounting, and tax compliance in one place. The integration reflects a broader industry trend. It combines banking services with digital financial management tools. This simplifies operations for small business owners.
For small business customers, the acquisition promises several tangible benefits. Automated bookkeeping will reduce manual entry and errors, while real-time tax filing ensures compliance and reduces the risk of penalties. Invoicing and payroll management integrated within the banking platform will save time. This integration will streamline operations. Business owners can focus on growth rather than administrative tasks. The software’s intuitive interface is designed for ease of use. It makes complex accounting processes more accessible to entrepreneurs without financial expertise.
Starling’s acquisition of Ember also highlights the competitive landscape in UK fintech. Banks and digital platforms are increasingly seeking ways to differentiate themselves. They do this through value-added services. Integrated tax and accounting solutions are becoming a key differentiator. By acquiring Ember, Starling gains not just technology. It also gains expertise in tax automation and digital bookkeeping. This enhances its proposition to SME clients.
Looking forward, the integration is expected to position Starling as a market leader in SME banking services. As the Making Tax Digital mandate comes into effect, businesses will need reliable tools to manage digital submissions. Starling’s combined platform offers a compelling solution. It gives customers confidence that their financial management processes are compliant and efficient. These processes are supported by professional-grade technology.
Starling Bank’s acquisition of Ember is a notable advancement. It marks a significant step in the evolution of digital banking. Additionally, it enhances financial management for SMEs. By bringing Ember’s tax and bookkeeping tools under its own platform, Starling aims to simplify financial operations for small businesses. It also seeks to ensure regulatory compliance. Additionally, the bank wants to strengthen its competitive position in the fintech market. The move is set to automate financial processes. It will integrate services to enhance efficiency. With strategic foresight, it aims to reshape how small businesses in the UK manage their finances. It sets a new benchmark for banking and accounting convergence.
