Starling Bank has acquired accounting software firm Ember in an effort to extend its offering for the small business banking market.
The acquisition - which is reportedly in the sub-£10 million range - will provide Starling with a ready-made suite of bookeeping and tax tools for solo entrepreneurs and small businesses.
“It’s a natural complement to start offering invoicing, accounting software, tax software, alongside traditional banking products, like credit related loans and facilities,” Declan Ferguson, Starling Bank’s chief financial officer, told Bloomberg.
Starling currently provides banking services for 500,000 small and medium-sized business. The deal to buy Ember comes ahead of the introduction of new HM Revenue & Customs 'Making Tax Digital' rules that will require sole traders and landlords to submit quarterly returns on income and expenses claims.
Ember currently provides services for the likes of HSBC, Lloyds Banking Group, Barclays and fintech rival Revolut. These will be discontinued as Starling folds the software into its business banking app.
Ferguson says: "We are a natural fintech consolidator, so targeted acquisitions like Ember will form a key part of our strategy as we continue to develop Starling Bank in the UK and Engine by Starling overseas. Just as Fleet Mortgages has flourished since we bought it in 2021, I’m confident that Ember’s best-in-class tools will become a fantastic addition to Starling Bank’s offering.”