Despite innovative technologies and digital tools, cases of data breaches, compromised accounts, and synthetic IDs are constantly increasing. In 2020, there were almost 3.3 billion cases reported of ID scams, which implies that validating and managing abundant data sets, for some, in the corporate and financial services sector, is still challenging. Poor standards of KYC/AML compliance and data management result in financial as well as reputational loss of companies.
To prevent loss of goodwill of a firm, the integration of (Optical Character Recognition) OCR app with other sophisticated technologies is quite essential for making data management and extraction swift, for making fraud prevention seamless.
How is OCR App essential for KYC/AML Verification?
The consistent verification checks and monitoring of clients in businesses are imperative for risk management. The data obtained at the time of preliminary authentication, and regular updates in the client profiles help the firm or bank to make strategic decisions for the long run.
OCR technology is imperative to sustain the equity of a firm or financial institution out there in the market, and it is cost-effective. Rossum’s Software stated that AI-powered OCR app technology has reduced their processing cost up to 80%.
Prior to customer onboarding online, KYC/KYB and AML verification are performed to make sure that the client is who he/she claims to be by scanning the necessary information and matching it with the data incorporated in different databases containing personal information and sanctions or watchlists to verify the credentials and past record of the future client.
All of that gets completed due to the OCR services. If a firm uses a free OCR app for cost minimization, the output would be worthless as the free solutions generate results with multiple errors and have several restrictions.
The interface of the OCR app is extremely user-friendly. The character recognition app processes the identity of an individual or beneficial owner of a firm through documents provided such as passport, national ID card, driving license, residential/corporate address, utility bills as proof of location, tax or rental agreements, there are thousands of documents types.
How does OCR Documents Scanner Extract Data?
The OCR process is a cloud-based service, no specific software or installation is required for it to run.
- The client is supposed to position his ID documents in front of their device’s camera where the optical scanner examines the documents, verifying their credibility. The OCR app looks for light and dark areas: dark areas are usually the text, and light areas mean the document background
- The data is received in an unstructured format, every character is converted into an ASCII code, and in OCR screening, the 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
- Post the verification of the OCR app, final results are generated and displayed to the end-user in real-time
How to Train an Extraction Model in an OCR App?
Different sorts of companies depending upon the nature of their business and its demands can train and configure several OCR models in the scanning solution.
- The firm has to upload a couple of different sample documents or templates for configuration purposes
- The necessary fields of areas are selected of the document by the cursor, to create the verification checkboxes
- Post this, the firm has to name and save the particular training model in the OCR app
- At the time of customer onboarding or data analysis for doing strategic planning, for different types of documents, different data extraction models are selected from the initially saved ones in the OCR app
- To begin data extraction, the user has to select a particular model and the data is collected frictionlessly in moments. In the OCR app, several scanned images of complicated documents can be selected at a time
- The final results are created in the form of a data extraction report, which can be saved and converted into different formats such as CSV, Excel, PDF
Uses of OCR Technology
The OCR app has plenty of applications for banks and business entities enabling them to function swiftly like never before:
- The OCR app in banking is used to enable the customers to deposit cheques online without the involvement of a teller
- Valuable information published in journals or newspapers can be preserved and looked upon online after several years
- The OCR app 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 the OCR app
- 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.
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. The OCR app makes data extraction and management seamless, multiple sorts of documents can be scanned and verified in a go. It is essential for companies prior to collaborating with someone and using obtained data for the growth of the firm. Free OCR apps generate results with countless errors, therefore an ideal technology is mandatory for scanning and management of data.