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Ember secures GBP 5 mln, partners with HSBC

Monday 20 May 2024 10:36 CET | News

An embedded accounting startup, Ember, has secured GBP 5 million in funding and formed a partnership with HSBC.

 

The partnership aims to deliver digital tax services to its small and medium-sized enterprise (SME) customers as the UK moves towards a fully digital tax system. Ember seeks to innovate within the accounting industry, competing with established firms like Sage and QuickBooks.

The startup has entered into an agreement with HSBC to offer digital tax services to a significant number of its SME clients. This collaboration will incorporate tax and accounting tools into HSBC's banking platform, aiming to simplify financial management for SMEs in the UK.

HSBC's SME customers will gain access to features such as integrated invoicing, transaction categorization, and cash flow tracking through Ember's embedded services. Ember intends to expand this offering to other banks in the future.

 

Initially, Ember provided its services directly to customers but has since shifted to an embedded finance model. The partnership with HSBC followed Hogan's presentation at an Open Banking conference, where he discussed the future of accounting and tax.

HSBC anticipates that these services will assist its customers in adapting to the government's Making Tax Digital initiative, which aims to establish a comprehensive digital tax system in the UK. This initiative will impact approximately 1.75 million business owners, requiring them to file multiple tax returns throughout the year starting in 2026, rather than a single annual return.

Concurrent with the HSBC partnership, Ember announced it has raised an additional £5 million, bringing its total funding to around GBP 10 million. This funding round was led by Valar Ventures, with participation from fintech investors Viola Fintech and Shapers.

HSBC’s new feature

HSBC UK has introduced a new savings product designed to help customers boost their bank balances. The new savings features have been added to the bank's mobile app, allowing customers to identify, plan, and manage their savings goals more effectively.

HSBC UK aims to meet customer needs and preferences in a changing market while ensuring compliance with industry regulations.

Customers using the mobile app can choose from a list of short to medium-term goals, such as travel, a new car, or business ventures. They can set target dates and amounts, arrange regular fund transfers to their savings accounts, and track their progress. For long-term goals, the app also offers an Investment Goals feature.

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Keywords: SMEs, funding, investment, partnership
Categories: Banking & Fintech
Companies: HSBC
Countries: United Kingdom
This article is part of category

Banking & Fintech

HSBC

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