![blog_image](https://shuftipro.com/wp-content/uploads/b-img-ocr-bank.jpg)
OCR in Banking | Automating Data Extraction, Customer Onboarding, and ID Verification
![blog_image](https://shuftipro.com/wp-content/uploads/b-img-ocr-bank.jpg)
BEFORE YOU GO...
Check how Shufti Pro can verify your customers within seconds
Request DemoNo thanks
The global Banking and Financial Services Industry (BFSI) is one of the most heavily regulated and monitored sectors in today’s data-driven world. In today’s fast-paced and data-driven economies, the banking sector needs to deal with billions of customers’ financial and personal information which requires automated solutions that are accurate, fool-proof, and efficient. Manual processes are highly prone to errors, leading to financial losses and inconvenience. OCR in banking is a game-changing automation technology that is being highly used in the financial industry. In simple terms, OCR technology extracts data from paper-based or digital documents and converts it into machine-readable text that can be easily edited, formatted, and searched.
Having exceptional data extraction, fraud prevention, and automation capabilities, OCR has become an integral part of banking processes or functions, making the global OCR market to reach $70 million by 2023. This technology is breaking barriers and helping the financial industry fast-track digitisation.
Checks, forms, bank statements, and other paper-based financial documents have long been used within the banking sector. However, as processes are getting digitised the conventional way of working exposes a significant limitation within the industry.
Consider a situation where your business:
In the above-mentioned scenarios, the power needed to initiate these improvements remained locked if using paper-based documents. Scanning documents might seem like an easy task. However, the manual way of doing so becomes a complex problem. First, it creates a photograph of a document, which is saved as a TIFF file. Whilst this overcomes the need to carry documents physically, yet restricts computers from accessing the information placed in the papers.
In the banking industry, regulatory obligations further uncover the limitations associated with paper-based processing. Under the Know Your Customer compliance requirements, banks are required to have digital operations as it would be time-consuming and hectic to manually handle the volume of information required.
Optical character recognition has been a transformative innovation the world has seen. The power, applications, and functions of OCR can not be overstated, from verifying government-issued documents like ID cards to reading data from license plates, OCR makes the processes a lot easier and streamlined by digitising the data capturing and extraction procedures. Applications that convert tourist signs in foreign languages to native are a great example of how OCR technology can transform daily operations.
Modern OCR systems use artificial intelligence and machine learning algorithms that make them capable of recognising complex patterns within financial documents that are critical in the world of banking and finance. In the banking sector, physical documents are required periodically, sometimes daily, or even multiple times a day, which makes it a hectic job. However, if they are converted into electronic form, they will become more suitable for long-term archival. In addition to this, OCR also provides an option of editing converted documents, which means the information places can be modified in real-time. Here are some prominent areas in the banking and finance sectors where OCR works wonders:
Before the banking sector experienced digital transformation, even a basic financial transaction took at least 5 to 8 working days to process, and now in today’s data-driven and wholly digitised world, even international transactions are carried out in a blink of an eye. Among AI, ML and other transformative technologies, optical character recognition plays a crucial role in helping the banking sector meet digitisation.
The teenagers of today who never liked the idea of traditional banking and always saw it as a tedious, time-taking, and agonising process whilst taking their parents to visit banks, can now carry out banking operations in a few taps on their smartphones all whilst sitting in their homes.
Prior to OCR banking solutions, manual processing backlogs and mountainous piles of customers’ documents for verification slowed everything down. Due to this, banking officers remain busy whilst the firm loses valuable hours performing simple tasks such as processing a check, or printing a bank statement.
Fast-forward to 2023, and now financial institutions are no longer required to specially hire an employee to collect or enter details from a check into the company’s system. Optical character recognition can automatically scan the whole document, identify different sections, create a digital template of it, and extract essential information from the provided paper in a matter of seconds. OCR systems constitute three fundamental principles, which are as follows:
Since the world started getting digitised, optical character recognition technology has played a vital role in assisting industries to transform hectic business operations whilst automating data entry and extraction from different documents.
Shufti Pro, an all-in-one identity verification and document authentication service provider, harnesses OCR technology as the core of the customer onboarding process. Using OCR-based IDV checks, the banking sector can swiftly screen clients’ identities and documents before onboarding them or letting them make transactions. Our OCR scanner is backed by AI models that make it capable of extracting text from identity documents in a matter of seconds with 99% accuracy.
Shufti Pro’s OCR for Businesses can:
Want to unlock growth opportunities with Shufti Pro?