Financial institutes and other businesses must comply with regulations. These obligations protect companies from fraud so businesses can grow securely. Conducting customer due diligence is compulsory to comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) laws. Banks and financial institutes can verify customer identities using document verification. Optical character recognition (OCR) scanners make this procedure efficient and effective.
Banks must conduct risk assessments of each client and get sufficient validation to onboard them. To make this customer onboarding process efficient and proactive, OCR scanning comes for help. Moreover, it also helps businesses automate data extraction and collection from PDFs, physical documents, and images.
What is an OCR Scanner?
The first machine that resembled OCR was invented by Emanuel Goldberg, which scanned the character text and changed it into telegraphic words. It was invented for blind persons so they could read the papers. The technology of the OCR used in today’s era is a result of various innovations. The most recent scanner OCR technology can now turn any image containing written text into machine readable text.
OCR technology became common during the digital newspaper era in the early 21st century. Technology was undeveloped at the time and failed to produce the desired results. But after the implementation of advanced technology, such as machine learning, OCR scanners can convert text meticulously and effectively. Advanced OCR technology simplifies and streamlines complex document workflows for enhanced efficiency and ease of use.
Several industries rely on the OCR scanner to overcome the burden of manually extracting data from documents. Businesses use OCR readers to convert and store physical documents in digital form. Moreover, OCR is also used to extract data from identity verification documents and crosscheck it against various databases.
OCR scanner has Changed Document Verification Process
For decades, OCR scanners have been used only in banks and businesses for document extraction. They convert print documents into machine-readable text. It remains the ideal choice for banks to turn invoices into digital copies so they can securely maintain financial records. The digital revolution and easy access to technology enable individuals to scan any paper and convert that into digital assets. Automation of the OCR document verification scanner brings various benefits for users, a few of which are discussed below:
Document Collecting
Technological innovations enable customers to send documents remotely from the comfort of their homes. They can submit them on the online platform, and businesses can use OCR scanners to detect the format of the pictures. Businesses also use advanced machine learning to verify visible security features such as holograms, signatures, fonts, etc. These all are detected by optical character recognition (OCR). According to Gartner’s research, 90% of companies will shift to robotic technology at the end of 2023. It shows the importance of OCR scanners in the upcoming world. To increase business efficiency, companies must use software that converts text into machine-readable language to automate data collection.
Enhanced Accuracy
The OCR scanner uses a proactive machine learning algorithm, which minimizes the chance of human mistakes. It ensures accurate and error-free document extraction from the images. Improve the document verification process by eliminating the manual data entry process. Utilizing AI technology with other advanced technology enhances results and accuracy. With OCR’s help, text recognition accelerates the document verification process. Using a machine learning algorithm eliminates the need for human intervention by automatically detecting data from the documents. Businesses can also ask for customized OCR tools to detect only essential information for the verification process.
Superior Data Security
Data security is almost crucial for every organization. The breach of companies’ data can cause financial loss and damage the reputation. Print papers can be stolen, misplaced, or destroyed by natural elements such as water, humidity, and fire. OCR scanners can protect these documents by scanning and storing them digitally. Text recognition software keeps the data in a secure database with an authentication code, so cyber scammers cannot access the company’s personal information. Only authorized personnel can access these databases adding an advanced layer of security.
Increased Growth
The OCR scanner increases employee productivity by extracting the data quickly and storing all documents in one step. The proactive OCR readers scan the documents quickly and process the verification rapidly. It can also handle large volumes of documents at one time, saving the employee’s time. The time and effort of the employees needed to extract documents can be utilized for other productive work. Implementation of AI technology helps businesses in cutting down the administration workforce. These reductions in time and cost have a great impact on business growth. It enhances revenue and allows companies to utilize human resources only for productive work.
Key Points of OCR Scanner
Document verification is an ideal process for companies to check customers’ identities. Implementing latest technology accelerates the procedure. OCR scanner is one of the advanced innovations that enhances the company’s onboarding process, including customer satisfaction and company security.
