Optical Character Recognition: Fast and Perfect Way of Data Extraction
Every business is in the run of providing more ease and convenience for its customers. Online services give ease of doing work remotely. A load of daily data processing increases on online platforms after COVID-19, because most businesses shift to online instantly. One of the problems was data retrieval, data manipulation, and storage.
Online data extraction from documents, is faster and reliable service that was provided by Optical Character Recognition OCR Technology. It can scan, extract and convert it into Machine Readable Zone (MRZ) spontaneously.
- OCR can support multiple languages documents
- OCR can extract data from different font styles and scripts
- It can also retrieve data from handwritten documents that are used for Consent Verification
- Combined with Human Intelligence (HI) and Artificial Intelligence (AI), OCR provides more accurate results
Use of OCR in the IDV industry:
IDV (Identity Verification) industry uses OCR Technology for identification and verification. The time duration of customer onboarding decreases and the accuracy increases. OCR was greatly appreciated by IDV or KYC (Know Your Customer) services providers.
Information on ID documents (ID Card, Driving Licence, or Passport) can be extracted from an image of that document in real-time. Then that data converted in MRZ and compared for verification.
Working of Optical Character Recognition:
In Optical Character Recognition pre-processing is divided into these sections:
De-skew and Despeckle:
Documents are vertically and horizontally tilted for proper alignment. Spots are removed and edges are uniformed
Colored images are converted into grey-scale images for better results. Grey-scale images are easy for OCR to extract data.
At some levels, scripts may change in multilingual documents. OCR recognizes that scripts for better results.
Because of the artifact, some sentences may include extra spaces. The documents are placed on the grid to remove extra spaces.
It can be done through two approaches
- The Matrix Matching algorithm that compares pixel-to-pixel. This algorithm needs the document in the same font and style. This technique is known as Pattern Recognition
- Characters are dissected into lines, line intersections, line directions, and closed loops to recognize multilingual documents. This technique is known as Feature Extraction
Then the extracted data is auto-populated in the form eliminating human data entry.
OCR services are divided into four types according to their products
- Mobile-based OCR
- Desktop-based OCR
- Cloud-based OCR
Future of OCR:
OCR was first used in the 1990s to digitize newspapers, over the year it has evolved and now it is giving 90% plus accuracy. In modern days, OCR can extract and populate data in 2 seconds. According to Market Watch, the OCR market revenue will be USD 13097 in 2025.
OCR along with Deep Learning makes a more precise solution named ICR (Intelligent Character Recognition). ICR can extract data from unstructured and semi-structured documents. It is not just extracting and matching data, it can also give instant visibility of the meaning of the text in documents.
Benefits of OCR:
Online OCR services are providing benefits for businesses
- It reduces cost by automating population data
- Manual data processing takes a long time. It saves that time and manipulates data in lesser time and its results are more accurate.
- Enhances business productivity
- Save human resource
The banking sector has more work on paper that requires manual entry. The signature of account holders needs to be done by hand. These signatures can be stored and compared digitally through OCR. This can help the banking sector to make more productive decisions against fake and forged cheques. As the data is saved in the cloud, data security and integrity increase. Data retrieval will be quicker and can be obtained from every corner of the world.
It narrows down to:
OCR service for IDV and KYC will be essential for Financial Institutes and online market places because these organizations need real-time screening of documents. They demand high security and accuracy that can only be provided b OCR. they will have better customer due diligence by using OCR.