As the world progresses towards digitization, banks and financial institutions must deal with large volumes of data. However, manually collecting the data from the image documents and PDF papers takes time and effort. Therefore, they are implementing OCR technology in their business operations to automate the customer’s verification procedure and other data entry-related tasks. Thus, AI-powered OCR text recognition reduces manual data entry time by automatically collecting data from their identity document. This way, firms can focus on other essential tasks and accelerate business growth.
Let’s quickly overview the OCR technology and how it helps businesses to revolutionize their daily operations.
OCR Technology – A Quick Overview
OCR technology, also known as a text recognition mechanism, automatically converts the written text of image or PDF documents. However, it helps businesses quickly digitize the document while reducing human interaction for manual data entry. Therefore, companies use the OCR text scanner to automate their business operations. Moreover, it helps businesses collect data from electronic documents and convert it into machine-readable language.
Various types of OCR technology vary according to the task requirements;
- Intelligent Word Recognition (IWR) identifies the unstructured handwritten words rather than individual character recognition.
- Intelligent character recognition is an updated form of OCR that uses the latest algorithms to collect data from various hand-printed documents.
- Optical Word Recognition (OWR) analyzes typewritten words separately from the various formats.
- Optical Mark recognition (OMR) scans the user’s data they provide on the surveys, tests, etc.
What are the Use Cases of OCR Technology in Different Industries?
Here are some use cases of the optical character recognition scanner across different industries:
Registration forms, which collect information about patients and may also request insurance information, are commonplace in the healthcare sector. Saving crucial data in a readily available electronic database is vital to maximize data management. This means that the OCR technology can swiftly and accurately record patient data by checking in paper records.
Patient charts, insurance applications, and policy declarations are just a few types of paperwork used in healthcare. The sheer volume of data healthcare facilities create makes accurate record-keeping laborious. OCR technology can address this issue by automating previously manual processes for handling patient records such as medical histories, insurance policies, and diagnostics. Having a patient’s medical history available to clinicians in the form of an electronic health record can help them provide a more precise diagnosis.
Better patient tracking is possible because the OCR scanning services can extract and store data in a safe cloud. Pharmaceutical firms can save time and money by keeping drug information in a central online database and accessing it through a single search.
- Insurance Industry
Optical character recognition scanner has several uses for insurance firms beyond streamlining data collection. Additionally, it can arrange a company’s vast amounts of paper and digital assets. The insurance industry relies heavily on OCR technology for data collection and acquisition.
Online OCR is used in business to increase profits, improve customer service, cut costs, and predict potential outcomes. However, unexpected delays have a negative effect on customer service in many businesses, including insurance. There is a need to enhance manual data entry due to the complexity of insurance plans and contracts.
OCR data capture systems can be helpful for insurance companies since they make it easier to sign up new consumers. Insurers rely on technology by letting customers upload digital copies of their policies using optical character recognition (OCR) apps. Since it generates fillable PDFs, it can streamline enforcing insurance contracts between businesses and their customers.
- Banking Industry
Financial institutions rely heavily on OCR technology because it boosts customer service, data management, security, and risk assessment. Best OCR solutions allow for the digital storage and simple accessibility of multiple documents. It also provides for the verification of signatures and declarations in real-time.
Depositing checks digitally utilizing OCR technology increases transaction security and reduces fraud risk. It also facilitates banking procedures by extracting data from paper documents rapidly and precisely.
Even in the modern era, many parts of law enforcement and government still rely on antiquated paper-based systems. The average error rate for manually entered data ranges from 0.55% to 3.6%, with a maximum of 26.9%. OCR technology may streamline everything from applying for a driver’s license to printing voter ID cards. OCR technology analyzes users’ cards and immediately extracts their data for verification, eliminating the need for manual checks of each user’s information.
Using a third-party service provider is an excellent way for businesses to meet their needs and gain an advantage. Modern methods get precise results almost instantly. In addition, when utilizing reliable service providers, data extraction activities can be simply automated. Data may be extracted in mere seconds across all sectors with the assistance of OCR technology, including banking, e-commerce, and digital payments. Therefore, state-of-the-art machinery reduces downtime and boosts efficiency in today’s businesses.