The journey to perfection never comes to an end. In this digital era, firms have transitioned from the traditional models to automated processes to scale up their brand status and maximize customers onboarding and reach perfection. It is imperative to acknowledge that a single system can’t accelerate all functions of a business. There has to be an ideal combination of different function-based solutions.
The integration of (Optical Character Recognition) OCR technology with other sophisticated methods is quite essential for making data management and processing swift, fraud prevention, protecting the brand’s image out there in the market, and is cost-effective. Rossum’s Software stated that AI-powered OCR technology has reduced their processing cost up to 80%
It processes the identity of an individual or beneficial owner of a firm through documents provided such as passport, photo-based ID, driving license, corporate and residential address, utility bills as proof of location, and so on. The OCR solutions validate the authenticity of those records by comparing them with national and regional records in a heartbeat with great accuracy.
How does online Optical Character Recognition Work?
The OCR technology is deployed and massively used all across the globe in industries like cryptocurrency, traveling, banks, insurance companies, brokerage firms, online shopping and scanning of invoices, and much more.
At first, the user has to make sure that the documents provided are undamaged; records being folded or cropped get rejected instantly. The OCR technology model consists of a set of different algorithms.
In the very beginning, the optical scanner examines the documents and after getting all images scanned, the solution looks for light and dark areas: dark areas are usually the text, and light areas mean the document background.
Post the extraction, each character of the document is converted into an ASCII code.
The OCR technology scans capture and extracts all the information. The data is received in unstructured format and in OCR screening, system scans and matches the data against national databases and watchlists and shapes it in a systematic composition according to the platform in no time.
After the verification, end results are stored in the back office of the platform or organization.
Uses of OCR Technology
The OCR services have plenty of applications for banks and business entities enabling them to function swiftly like never before:
- The compliance solution is used in the banking sector to enable the customers to deposit cheques online without the involvement of a teller
- The firms can store and manage confidential agreements in a secure e-database
- The OCR technology is widely used for scanning and storing documents, checklists, and templates which are frequently used by banks or business firms to edit them in software like Word, Excel, and spreadsheets and also for document verification.
- Valuable information published in journals or newspapers can be preserved and looked upon online after several years
- The OCR technology makes the process of data extraction and processing completely automatic and cost-effective, according to McKinsey, a total of $2 trillion can be saved through OCR technology
- The sales productivity of the organizations gets enhanced and costs are reduced
- License plates of automobiles can be captured and be easily traceable in case of any
- The blind segment of the market should not be left untapped in any way, OCR technology has been taking care of that for a long time. The characters of scanned documents can be converted into large-sized fonts for people with a poor eye condition and to totally blind souls, in form of a regular voice, the text is spoken by the solution
Email on deck is the website for all things related to temporary, disposable, and throwaway email accounts. The fact is that email on deck is not a real program; it is only an online service provided by email providers. This offers a large database of email addresses and other contact details.
AI-based OCR Technology in Due Diligence
In business, what matters more than the product itself is the approach. To cater to the target market, businesses have to go the extra mile and assure the ultimate protection of their valuable data and monetary funds.
The absence of an AI-enhanced OCR technology makes customer onboarding and retention of profitable parties hard as people are seeking convenience, purchases, or transactions taking long makes them shift towards other brands/firms. On the other hand, regulatory bodies emphasize obeying KYC/AML policies and penalties of non-compliance are enormous. The amount of money lost to ID frauds in 2020 reached almost $712.4 B, compared to the previous year, a 42% increase was reported. The importance of OCR technology is clear from this massive increase.
Many small firms also use free OCR systems for cost minimization justifying by saying there is not enough volume of work for automated OCR solutions and their cost would be wasted. With that attitude, those firms won’t go anywhere because the free solutions generate results with multiple errors and have several restrictions. They are not providing real value.
The OCR technology undoubtedly has a significant impact on multiple businesses and financial institutions as it makes data verification and processing ultrafast with great accuracy and helps them in KYC due diligence. It recognizes and analyzes every single character of the presented document and matches the information with confidential databases before any relation establishes. It reduces cost, increases productivity, and protects businesses and banks from scams and penalties from regulators. The free OCR technology is of no use and therefore any sort of substitute for pro service should not be searched upon because it might save some money but surely damage the firm’s image in the market.