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All postsEngineering

How Stakari Classifies Transactions with 94% Accuracy

Automatic categorization is only useful if it's right. Here's the NLP pipeline, training data, and feedback loop that get us to production-grade accuracy.

NH

Ndifoin Hilary

Founder

April 22, 2026

7 min read

EngineeringNLPMachine Learning

Transaction classification is a deceptively hard NLP problem. "AMZN*AB3F9D2 SEATTLE WA" needs to map to "Cloud Infrastructure" for an engineering team and "Office Supplies" for a procurement team. Context matters, and context changes per workspace.

The Pipeline

We run each transaction through three stages: vendor normalization (stripping payment processor noise), base classification using a fine-tuned model on 2M labeled financial transactions, and workspace-level fine-tuning based on historical corrections from that tenant.

The Feedback Loop Is Everything

Our base model starts at ~82% accuracy on cold accounts. But every time a user corrects a category, that correction feeds back into the workspace model. By the 60th correction, workspace-level accuracy typically exceeds 94%, and stays there.

“The best classification system is one that gets smarter the more you use it, not one that asks you to configure it up front.”
, Ndifoin Hilary, Founder
NH

Ndifoin Hilary

Founder

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