Automatic categorization of financial transactions is the centerpiece of any PFM solution. But where do transaction categories come from? How are they automatically assigned? How is success measured and how do we ensure that the system improves over time?

Having designed and built categorization engines for major financial institutions in over 10 different countries throughout Europe and the Americas, Strands has published a white paper that will interest anyone seeking to understand these questions.

Over a decade of experience in this field has been summarized in this white paper, covering topics such as how to define category taxonomy, how categorization rules work, and how to prioritize rules.

This paper also includes practical guidelines for creating a practical category taxonomy and explains how to handle conflicting categorization rules.

Categorization white paper