Today’s financial institutions operate through digital platforms and incorporate online payment systems. It allows customers to easily make and receive payments. But, it also protects against the risks associated with crime. Documentation has also been transformed from being kept in huge folders into being stored electronically.
OCR software has been developed to help digitize documents. It can scan, extract information and even create a PDF. OCR will be valued at 26.31 billion dollars in 2028 according to statistical data. Because OCR has grown in popularity among digital platforms, this is why it’s so popular.
The Need For OCR Technology
The improvements in digital operations make them much more efficient and the shift to remote work hasn’t had any adverse effects on the daily tasks. This has led to increased competition and the risk of identity theft as well as financial crime.
Data entry and extraction from documents were manual processes. OCR software is a way for businesses to save time and automate the process. OCR services use AI and machine learning algorithms in order to decrease human error while large data sets are being analysed simultaneously.
OCR services replace bulky scanners or other hardware devices and offer the same functionality in everyday devices, such as mobile phones.
Functionality of OCR
OCR solutions differ from each other depending on where and how they are being incorporated, but the principle is common. While mobile technology may be the same across companies, every one manufactures their cell phones at a different pace. To create verification documents, every OCR provider uses character recognition technology.
The cameras on mobile phones can be used to take images of documents and extract any information.
OCR uses predetermined algorithms to recognize and split characters into distinct entities. Each character then is read individually. The words are created from the collectively identified characters.
Different letters and numbers can be assigned metadata that is compared with preset fonts and templates. An improvement in OCR technology, called ICR (intelligent characters recognition), has been added to improve the accuracy of this process. This technology allows for the capture of cursive handwriting by scanning documents.
Using this intelligent OCR app, capturing the details such as the difference between the number “2” and the uppercase letter “Z” is possible. To determine which sentence makes the most sense, OCR can also check for characters around each word or letter.
OCR Document Scanning
OCR app provides businesses the technology to read and capture data from any type of hard copy.
1. Unstructured documents
The documents that do not have a predefined template or the cases where the standardization level is very poor come under unstructured documents. Sometimes important dates or other information is not listed in the correct format and it can be difficult to read the document’s structure. However, OCR apps are now capable of reading these kinds of documents.
2. Structured documents
On the other hand, the documents that are created using set templates and proper structure are called structured documents. Structured documents can include documents such as identity documents, credit cards, and utility bills.
3. Semi-structured documents
Those documents that are not created according to a specific template, but are clear and easy to read are semi-structured documents. This document often includes purchase orders or invoices from shops.
OCR Technology In Banking
Banks are regular users of the OCR app because banks receive quite a lot of paperwork and it needs to be processed quickly. Banks can quickly extract data from paper documents using the OCR app and then automatically input it into their digital systems. ATM is one of the most popular applications. It uses OCR technology to identify payment card information and then operates accordingly.
Scannable cheques are much easier than manually entering data and can also be processed faster. OCR apps have become more efficient thanks to artificial intelligence, which continuously learns from the data they process. The automated processing of forms has enabled banks to automate regular paperwork and routine tasks.
To summarize, since paper documents are not considered as a means to communicate and conduct operations, the OCR app is a much-needed advancement in technology to cope with the speed of digital processes. OCR technology can greatly automate the validation of documents thanks to AI and other constant improvements.
Entrepreneurship Life’s first article was Digital Document Scanning using OCR App to Efficiently Analyze Data.