Starling Bank Buys Ember to Offer Tax Tools to SMEs

Starling Bank has acquired UK-based accounting startup Ember in a deal reportedly valued at under £10 million, as the digital lender looks to strengthen its offering for small business customers.

The acquisition will enable Starling’s 500,000 SME clients to access tax and bookkeeping tools directly alongside traditional banking services such as loans and credit facilities. “It’s a natural complement to start offering invoicing, accounting software, tax software, alongside traditional banking products,” said Declan Ferguson, Chief Financial Officer at Starling Bank.

The move comes ahead of UK regulatory changes in 2026 requiring around 780,000 sole traders and landlords to file quarterly income and expense reports with HMRC. Ember, founded in 2019, had raised £5 million last year from investors including Valar Ventures and Shapers. Following the acquisition, its advisory services will be discontinued, and about 30 staff will transition to roles at Starling. Co-founders Daniel Hogan and Aaron Shaw will also join the bank to lead integration, expected to complete by year-end.

The deal means Ember’s existing partnerships with lenders such as HSBC, Revolut, Barclays, and Lloyds will end in 2026.

The acquisition comes as Starling faces regulatory scrutiny, including a £29 million fine last October over failings in customer risk controls. The bank remains under restrictions from the Financial Conduct Authority. At the same time, Starling is eyeing international expansion, with plans to acquire a US chartered bank to establish a regulated presence in the American market.