How accurate is transaction categorization in Nance?

1 min read

Summary

Transaction categorization in Nance is highly accurate and improves over time, especially as you review and correct transactions.


How This Works in Nance

Nance uses a combination of AI, rule-based logic, and user feedback to categorize transactions as accurately as possible.


1. Strong Base Accuracy

  • Categorization is based on:
    • Merchant names
    • Transaction descriptions
    • Known patterns from similar users
  • Most common transactions (e.g., food, fuel, travel) are categorized correctly by default

2. Learns from Your Behavior

  • When you edit:
    • Category
    • Subcategory
    • Contact
  • Nance treats this as a learning signal
  • Repeated corrections increase future accuracy for similar transactions

3. Confidence-Based Automation

  • Nance only auto-applies categories when confidence is high
  • In uncertain cases, transactions may be placed in Miscellaneous instead of guessing incorrectly

4. Context from Contacts (Including UPI)

  • Contact recognition (especially from UPI transactions) adds extra context
  • Helps improve both:
    • Categorization accuracy
    • Consistency across similar transactions

What Affects Accuracy

  • Clear vs unclear merchant descriptions
  • First-time or uncommon transactions
  • Whether you correct and guide the system

Important to Know

  • You can always edit categories anytime
  • Accuracy improves the more you use Nance
  • Consistent edits help refine the system further

Smart from day one.

Personal by day ten.

Did this answer your question?

ยฉ 2026 Nance Tech Private Limited. All rights reserved.

Powered by