OCR, which stands for optical character recognition, is a technology that extracts data from scanned documents or images and converts them into text-readable files. This machine-readable form is used for further processing and data analysis. OCR services are used by global businesses to streamline and automate their document data extraction processes reducing errors, time, and efforts otherwise spent on manually extracting data. The technology was coined in the 1990s and since then it has been subjected to remarkable innovations and reached an accuracy rate of over 90%.
Improved Optical Character Recognition OCR Technology can extract data from various document templates such as:
- Identity documents
- Bank statements
- Tax documents
- Invoices and receipts; so on and so forth
The files can then be accessed digitally from the central location where all files are stored and maintained, and from where they can be directly sent to other systems.
Quick data extraction processes: As time is of the essence, and critical for companies to achieve more in less time. Deploying optical character recognition (OCR) solutions can reduce the processing time by over 70%. By cutting down on time and manual processes, companies can utilize their valuable resources on something far more important otherwise wasted on manual data extraction. In other words, OCR solutions offer more efficient time management.
Error-free: Undoubtedly, manual processes are vulnerable to errors. Whereas OCR solutions can drastically reduce or eliminate costly errors that could cost businesses hundreds of dollars and not to mention the additional time spent on fixing those errors at the same time.
Lower costs: The business costs can be reduced by implementing optical character recognition (OCR) solutions. They may include labor costs, maintenance, time, cost of errors, and whatnot. Also, printing and photocopying can be eliminated thus making it paperless.
Accessibility: Since most of the businesses are moving their documents to online cloud storage, or they prefer storing documents online for easy access rather than in physical spaces. By using OCR services, employees in the companies can access, edit, read, or share data directly from their storage space whenever they need it after extracting it. The chances of losing data and misplacing it can be highly diminished.
Enhance data security and recovery: Since OCR software enables documents to be stored digitally. Therefore, digital online documents are considered secure as compared to paper documents because digital documents are less prone to damage or misplacement of confidential files. Also, when an OCR solution is storing and handling data, companies can save it from getting lost due to incidents or mishaps.
Smoother management: With optical character recognition (OCR), content management is totally hassle-free and automated. Companies no longer need to spend time manually managing documents categorically. OCR services make the entire process effortless.
Easily searchable files: Since optical character recognition (OCR) converts all the data into text searchable files. Employees can easily filter out documents by applying certain keywords without frustration. Confidential or special files can be effectively sorted out.
Text editing: Hard copies of documents are not readily edited but OCR services enable users to edit, add, delete any information directly from the text searchable files.
Better overall experience: OCR services greatly improve work experiences. Companies have all the data at their fingertips, so in case of any inquiry, they can just run down and easily access information on the go.
OCR & KYC Verification
While Optical Character Recognition OCR Services offers a viable solution for quick and efficient data extraction, they also help in user identification at the time of onboarding. The famous Know Your Customer or KYC process that corporate and financial entities carry out during new account openings can be made much more convenient using state-of-the-art OCR services. Let us assume the following scenario to understand the functionality of OCR technology.
“John came across a blockchain-based firm that sells cryptocurrency. The company carries out standard identity verification of its prospects before providing services. John goes to the website login page and wishes to open an account. The system prompts the end-user to submit a photo of any ID document certified by the government in order to open the account.
John uploads a photo of his driving license upon which the automated OCR engine instantly extracts relevant information like name, residential address, date of issuance and expiry, etc. This information is then cross-checked against the data John provided at the initial stage of the onboarding process. The results (successful or failed verification) are shared with John through the company’s interface as soon as the process is complete.”
Wrapping it up
All in all, OCR technology eliminates the stress of manually extracting data. The high volume of data is easily searchable, quick, and accurate. Converting unstructured data into searchable files ensures easy access to information which makes the entire process effective and efficient.