Starling Bank has acquired Ember, a UK accounting startup, in a deal reportedly worth less than £10 million, as the digital lender seeks to strengthen its small business banking proposition.
Ember provides accounting and tax software designed for small businesses, helping them manage bookkeeping, track expenses, and prepare tax filings. The acquisition will allow Starling to offer these capabilities directly to its business banking customers.
For small business owners, managing finances and staying compliant with tax obligations represents a significant administrative burden. Many use separate accounting software alongside their business bank account, requiring manual data entry and reconciliation.
By integrating Ember's tools into its platform, Starling can provide a more seamless experience where accounting functions connect directly to business banking transactions. This integration could save customers time and reduce errors associated with manual data handling.
The deal reflects Starling's focus on building a comprehensive business banking platform rather than just offering basic accounts and payments. The bank has been adding features like invoicing, expense management, and now accounting to differentiate itself from traditional banks and other digital challengers.
Ember's team and technology will join Starling, with the accounting tools expected to be integrated into the bank's business banking app. Existing Ember customers will transition to the Starling platform, gaining access to the bank's broader suite of services.
The sub-£10 million price tag suggests a relatively modest acquisition, likely reflecting Ember's early-stage status and customer base size. For Starling, the strategic value lies more in the technology and talent than in acquiring a large existing revenue stream.
Small business banking has become increasingly competitive, with both traditional banks and digital challengers vying for customers. Offering integrated accounting and tax tools gives Starling another way to attract and retain business customers who might otherwise use multiple providers.
The acquisition also positions Starling to potentially offer more sophisticated lending products in the future, as integrated accounting data provides better visibility into business performance and cash flow—key factors in credit decisions.