How to integrate PocketSmith MCP with Pydantic AI

This guide walks you through connecting PocketSmith to Pydantic AI using the Composio tool router. By the end, you'll have a working PocketSmith agent that can track your transactions, review your budgets, summarize spending, manage categories, and update accounts through natural language commands. This guide will help you understand how to give your Pydantic AI agent real control over a PocketSmith account through Composio's PocketSmith MCP server. Before we dive in, let's take a quick look at the key ideas and tools involved.

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PocketSmith is a personal finance platform for accounts, transactions, budgets, and cash-flow forecasts. Use it to understand spending, plan ahead, and make better money decisions.

14 Tools

Introduction

This guide walks you through connecting PocketSmith to Pydantic AI using the Composio tool router. By the end, you'll have a working PocketSmith agent that can track your transactions, review your budgets, summarize spending, manage categories, and update accounts through natural language commands.

This guide will help you understand how to give your Pydantic AI agent real control over a PocketSmith account through Composio's PocketSmith MCP server.

Before we dive in, let's take a quick look at the key ideas and tools involved.

Also integrate PocketSmith with

OpenAI Agents SDKClaude Agent SDKClaude CodeClaude CoworkCodexOpenClawHermesCLIGoogle ADKLangChainVercel AI SDKMastra AILlamaIndexCrewAI

TL;DR

Here's what you'll learn:
  • How to set up your Composio API key and User ID
  • How to create a Composio Tool Router session for PocketSmith
  • How to attach an MCP Server to a Pydantic AI agent
  • How to stream responses and maintain chat history
  • How to build a simple REPL-style chat interface to test your PocketSmith workflows

What is Pydantic AI?

Pydantic AI is a Python framework for building AI agents with strong typing and validation. It leverages Pydantic's data validation capabilities to create robust, type-safe AI applications.

Key features include:

  • Type Safety: Built on Pydantic for automatic data validation
  • MCP Support: Native support for Model Context Protocol servers
  • Streaming: Built-in support for streaming responses
  • Async First: Designed for async/await patterns

What is the PocketSmith MCP server, and what's possible with it?

The PocketSmith MCP server is an implementation of the Model Context Protocol that connects your AI agent and assistants like Claude, Cursor, etc directly to your PocketSmith account. It provides structured and secure access to your accounts, transactions, categories, and budgets, so your agent can review spending, record transactions, organize finances, update account details, and analyze budgets on your behalf.

  • Account and balance overview: Have your agent list your financial and transaction accounts, check their balances, and gather the details needed to manage your finances.
  • Transaction tracking and updates: Let the agent find transactions by date, state, type, or keyword, review individual records, create new transactions, and update existing ones.
  • Spending categorization: Direct your agent to list, create, and update categories, including category hierarchy and budgeting behavior.
  • Budget analysis: Instruct your agent to review current category-level actual and forecast budgets or summarize income and expenses across a chosen date range and interval.
  • Account organization: Have your agent update selected details on your financial accounts while leaving balances and transactions unchanged.

What is the Composio tool router, and how does it fit here?

What is Composio SDK?

Composio's Composio SDK helps agents find the right tools for a task at runtime. You can plug in multiple toolkits (like Gmail, HubSpot, and GitHub), and the agent will identify the relevant app and action to complete multi-step workflows. This can reduce token usage and improve the reliability of tool calls. Read more here: Getting started with Composio SDK

The tool router generates a secure MCP URL that your agents can access to perform actions.

How the Composio SDK works

The Composio SDK follows a three-phase workflow:

  1. Discovery: Searches for tools matching your task and returns relevant toolkits with their details.
  2. Authentication: Checks for active connections. If missing, creates an auth config and returns a connection URL via Auth Link.
  3. Execution: Executes the action using the authenticated connection.

Step-by-step Guide

Step by step09 STEPS
1

Prerequisites

Before starting, make sure you have:
  • Python 3.9 or higher
  • A Composio account with an active API key
  • Basic familiarity with Python and async programming
2

Getting API Keys for OpenAI and Composio

OpenAI API Key
  • Go to the OpenAI dashboard and create an API key. You'll need credits to use the models, or you can connect to another model provider.
  • Keep the API key safe.
Composio API Key
  • Log in to the Composio dashboard.
  • Navigate to your API settings and generate a new API key.
  • Store this key securely as you'll need it for authentication.
3

Install dependencies

bash
pip install composio pydantic-ai python-dotenv

Install the required libraries.

What's happening:

  • composio connects your agent to external SaaS tools like PocketSmith
  • pydantic-ai lets you create structured AI agents with tool support
  • python-dotenv loads your environment variables securely from a .env file
4

Set up environment variables

bash
COMPOSIO_API_KEY=your_composio_api_key_here
USER_ID=your_user_id_here
OPENAI_API_KEY=your_openai_api_key

Create a .env file in your project root.

What's happening:

  • COMPOSIO_API_KEY authenticates your agent to Composio's API
  • USER_ID associates your session with your account for secure tool access
  • OPENAI_API_KEY to access OpenAI LLMs
5

Import dependencies

python
import asyncio
import os
from dotenv import load_dotenv
from composio import Composio
from pydantic_ai import Agent
from pydantic_ai.mcp import MCPServerStreamableHTTP

load_dotenv()
What's happening:
  • We load environment variables and import required modules
  • Composio manages connections to PocketSmith
  • MCPServerStreamableHTTP connects to the PocketSmith MCP server endpoint
  • Agent from Pydantic AI lets you define and run the AI assistant
6

Create a Tool Router Session

python
async def main():
    api_key = os.getenv("COMPOSIO_API_KEY")
    user_id = os.getenv("USER_ID")
    if not api_key or not user_id:
        raise RuntimeError("Set COMPOSIO_API_KEY and USER_ID in your environment")

    # Create a Composio Tool Router session for PocketSmith
    composio = Composio(api_key=api_key)
    session = composio.create(
        user_id=user_id,
        toolkits=["pocketsmith"],
    )
    url = session.mcp.url
    if not url:
        raise ValueError("Composio session did not return an MCP URL")
What's happening:
  • We're creating a Tool Router session that gives your agent access to PocketSmith tools
  • The create method takes the user ID and specifies which toolkits should be available
  • The returned session.mcp.url is the MCP server URL that your agent will use
7

Initialize the Pydantic AI Agent

python
# Attach the MCP server to a Pydantic AI Agent
pocketsmith_mcp = MCPServerStreamableHTTP(url, headers={"x-api-key": COMPOSIO_API_KEY})
agent = Agent(
    "openai:gpt-5",
    toolsets=[pocketsmith_mcp],
    instructions=(
        "You are a PocketSmith assistant. Use PocketSmith tools to help users "
        "with their requests. Ask clarifying questions when needed."
    ),
)
What's happening:
  • The MCP client connects to the PocketSmith endpoint
  • The agent uses GPT-5 to interpret user commands and perform PocketSmith operations
  • The instructions field defines the agent's role and behavior
8

Build the chat interface

python
# Simple REPL with message history
history = []
print("Chat started! Type 'exit' or 'quit' to end.\n")
print("Try asking the agent to help you with PocketSmith.\n")

while True:
    user_input = input("You: ").strip()
    if user_input.lower() in {"exit", "quit", "bye"}:
        print("\nGoodbye!")
        break
    if not user_input:
        continue

    print("\nAgent is thinking...\n", flush=True)

    async with agent.run_stream(user_input, message_history=history) as stream_result:
        collected_text = ""
        async for chunk in stream_result.stream_output():
            text_piece = None
            if isinstance(chunk, str):
                text_piece = chunk
            elif hasattr(chunk, "delta") and isinstance(chunk.delta, str):
                text_piece = chunk.delta
            elif hasattr(chunk, "text"):
                text_piece = chunk.text
            if text_piece:
                collected_text += text_piece
        result = stream_result

    print(f"Agent: {collected_text}\n")
    history = result.all_messages()
What's happening:
  • The agent reads input from the terminal and streams its response
  • PocketSmith API calls happen automatically under the hood
  • The model keeps conversation history to maintain context across turns
9

Run the application

python
if __name__ == "__main__":
    asyncio.run(main())
What's happening:
  • The asyncio loop launches the agent and keeps it running until you exit

Complete Code

Here's the complete code to get you started with PocketSmith and Pydantic AI:

python
import asyncio
import os
from dotenv import load_dotenv
from composio import Composio
from pydantic_ai import Agent
from pydantic_ai.mcp import MCPServerStreamableHTTP

load_dotenv()

async def main():
    api_key = os.getenv("COMPOSIO_API_KEY")
    user_id = os.getenv("USER_ID")
    if not api_key or not user_id:
        raise RuntimeError("Set COMPOSIO_API_KEY and USER_ID in your environment")

    # Create a Composio Tool Router session for PocketSmith
    composio = Composio(api_key=api_key)
    session = composio.create(
        user_id=user_id,
        toolkits=["pocketsmith"],
    )
    url = session.mcp.url
    if not url:
        raise ValueError("Composio session did not return an MCP URL")

    # Attach the MCP server to a Pydantic AI Agent
    pocketsmith_mcp = MCPServerStreamableHTTP(url, headers={"x-api-key": COMPOSIO_API_KEY})
    agent = Agent(
        "openai:gpt-5",
        toolsets=[pocketsmith_mcp],
        instructions=(
            "You are a PocketSmith assistant. Use PocketSmith tools to help users "
            "with their requests. Ask clarifying questions when needed."
        ),
    )

    # Simple REPL with message history
    history = []
    print("Chat started! Type 'exit' or 'quit' to end.\n")
    print("Try asking the agent to help you with PocketSmith.\n")

    while True:
        user_input = input("You: ").strip()
        if user_input.lower() in {"exit", "quit", "bye"}:
            print("\nGoodbye!")
            break
        if not user_input:
            continue

        print("\nAgent is thinking...\n", flush=True)

        async with agent.run_stream(user_input, message_history=history) as stream_result:
            collected_text = ""
            async for chunk in stream_result.stream_output():
                text_piece = None
                if isinstance(chunk, str):
                    text_piece = chunk
                elif hasattr(chunk, "delta") and isinstance(chunk.delta, str):
                    text_piece = chunk.delta
                elif hasattr(chunk, "text"):
                    text_piece = chunk.text
                if text_piece:
                    collected_text += text_piece
            result = stream_result

        print(f"Agent: {collected_text}\n")
        history = result.all_messages()

if __name__ == "__main__":
    asyncio.run(main())

Conclusion

You've built a Pydantic AI agent that can interact with PocketSmith through Composio's Tool Router. With this setup, your agent can perform real PocketSmith actions through natural language. You can extend this further by:
  • Adding other toolkits like Gmail, HubSpot, or Salesforce
  • Building a web-based chat interface around this agent
  • Using multiple MCP endpoints to enable cross-app workflows (for example, Gmail + PocketSmith for workflow automation)
This architecture makes your AI agent "agent-native", able to securely use APIs in a unified, composable way without custom integrations.
TOOLS

Supported Tools

Every PocketSmith action and event your agent gets out of the box.

Create Category

Create one category for a PocketSmith user with optional hierarchy and budgeting behavior.

Create Transaction

Create one transaction in a specified transaction account and return the created financial record.

Get Budget

Return a PocketSmith user's current category-level actual and forecast budget analysis.

Get Budget Summary

Analyze the user's combined income and expense budget over a required date range and period interval.

Get Current User

Return the PocketSmith user authorized by the connected developer key, including the user ID needed by user-scoped tools.

Get Transaction

Return one PocketSmith transaction by ID with its amount, date, payee, category, labels, and review state.

List Accounts

Return all financial accounts belonging to a PocketSmith user, including account, primary transaction-account, and scenario IDs.

List Categories

Return all categories belonging to a PocketSmith user, including hierarchy and budgeting flags.

List Transaction Accounts

Return the transaction accounts belonging to a PocketSmith user, including IDs and balances needed to create and query transactions.

List Transactions

Return one page of a user's transactions with optional date, state, type, and keyword filters, plus a cursor for the next page.

Update Account

Update selected metadata on one financial account without deleting it or changing transaction-account balances.

Update Category

Update selected hierarchy, display, and budgeting fields on one category without deleting it.

Update Transaction

Update selected fields on one existing transaction without deleting or splitting it.

Update Transactions

Update 1-20 distinct transactions sequentially.

FRAMEWORKS

How to build PocketSmith MCP Agent with another framework

OpenAI Agents SDK logo

OpenAI Agents SDK

Use PocketSmith MCP with OpenAI Agents SDK

Claude Agent SDK logo

Claude Agent SDK

Use PocketSmith MCP with Claude Agent SDK

Claude Code logo

Claude Code

Use PocketSmith MCP with Claude Code

Claude Cowork logo

Claude Cowork

Use PocketSmith MCP with Claude Cowork

Codex logo

Codex

Use PocketSmith MCP with Codex

OpenClaw logo

OpenClaw

Use PocketSmith MCP with OpenClaw

Hermes logo

Hermes

Use PocketSmith MCP with Hermes

CLI logo

CLI

Use PocketSmith MCP with CLI

Google ADK logo

Google ADK

Use PocketSmith MCP with Google ADK

LangChain logo

LangChain

Use PocketSmith MCP with LangChain

Vercel AI SDK logo

Vercel AI SDK

Use PocketSmith MCP with Vercel AI SDK

Mastra AI logo

Mastra AI

Use PocketSmith MCP with Mastra AI

LlamaIndex logo

LlamaIndex

Use PocketSmith MCP with LlamaIndex

CrewAI logo

CrewAI

Use PocketSmith MCP with CrewAI

FAQ

Frequently asked questions

With a standalone PocketSmith MCP server, the agents and LLMs can only access a fixed set of PocketSmith tools tied to that server. However, with the Composio Tool Router, agents can dynamically load tools from PocketSmith and many other apps based on the task at hand, all through a single MCP endpoint.

Yes, you can. Pydantic AI fully supports MCP integration. You get structured tool calling, message history handling, and model orchestration while Tool Router takes care of discovering and serving the right PocketSmith tools.

Yes, absolutely. You can configure which PocketSmith scopes and actions are allowed when connecting your account to Composio. You can also bring your own OAuth credentials or API configuration so you keep full control over what the agent can do.

All sensitive data such as tokens, keys, and configuration is fully encrypted at rest and in transit. Composio is SOC 2 Type 2 compliant and follows strict security practices so your PocketSmith data and credentials are handled as safely as possible.

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