Monarch uses artificial intelligence to make it easier than ever to understand and have confidence in your finances, from improving the accuracy of transaction categorization to helping you generate reports easily using natural language. As we continue to leverage AI in new ways, we always do so with the privacy of your data top of mind.

Learn more about our approach and philosophy around its use, and how we protect your information.

How AI works in Monarch

At Monarch, we use AI techniques, including Large Language Models (LLMs), which are pre-trained on large amounts of data to understand patterns and generate human-like language. LLMs can process structured inputs (such as transactions) and provide helpful, user-friendly outputs.

We currently use a combination of third party LLMs and our own in-house modeling for tasks like transaction enrichment, more accurate categorization, merchant recognition, and to generate helpful insights about your finances.

How your data is protected

Your privacy is central to how we design and leverage AI within Monarch. Here's how we keep your information safe:

• Minimal data sharing: We only share data that’s strictly necessary for a given task or use case. This might include things like transaction descriptions or dates, but never includes personal identifiers like your name, email, financial account numbers, usernames, or passwords.

• No persistent storage by AI models: Your data is never retained or stored by third-party models after processing.

• Information shared is always anonymized: If we use AI to fine-tune models for better accuracy in the future, we’ll do so using only anonymized, aggregated data.

• No training on third-party models: We don’t allow third party providers to use your data to train their models.

To learn more, see our Privacy Policy.

Why we use AI

We use AI to help make understanding and uncovering insights into your finances easier, faster, and more personalized so you can make confident financial decisions. This includes:

• Improving accuracy in categorizing transactions and identifying merchants.

• Synthesizing financial data into summaries and reports.

• Identifying patterns or anomalies in your financial activity.

Can I control how AI is used?

Most of Monarch’s AI features today are seamlessly integrated into your experience—for example, improving transaction categorization or using natural language to create a personalized report. Some of these uses will be foundational to the Monarch experience, while others in the future may be opt-in so that you can choose which you're comfortable using and what provides the most value to you.

💬 FAQs

What types of data are sent to AI models?

Only data relevant to a specific task. For example, to improve transaction categorization, we may send transaction descriptions, dates, and merchant information—but never your name, email, or login credentials.

Are AI models trained on my personal data?

No. We never allow third-party partners to train their models on your personal data. In the future, we may use anonymized data to improve our own models—but we’ll always prioritize your privacy.

What features are currently powered by AI?

Features that use AI include auto-categorization of transactions, the AI Assistant (currently only available to a subset of users), and the "Explain this transaction" option on the transaction detail page.

Will AI features always be accurate?

AI is a powerful tool, but it’s not perfect. It may occasionally misclassify data or return a result that needs further review. We’re continually improving the models we use to reduce errors and increase reliability. Alongside automated testing, we always perform human-in-the-loop QA and testing of model outputs, though we unfortunately cannot test or guarantee every possible scenario.