The banking sector always looks for new methods to increase operational effectiveness, improve customer experience, and reduce risks in today’s digital world. Optical Character Recognition is one innovation widely adopted in the banking sector (OCR). Banks can now accurately and quickly process massive volumes of data thanks to OCR technology, which also helps to reduce errors and the need for manual data entry. OCR has completely changed how banks function, from expediting the account opening process to strengthening fraud detection and mobile banking capabilities.
What is OCR technology?
Optical character recognition is known as OCR. It is a technique for turning printed or handwritten text into data that computers can understand. By using software to analyze and decipher the patterns and shapes of characters in a picture, OCR technology works. The text created from these characters can then be machine-encoded and used to create text that can be digitally searched, changed, and manipulated.
OCR technology enables organizations to automate data entry, lower errors, and boost efficiency by digitizing and processing documents like invoices, receipts, forms, and contracts. OCR is employed in the banking sector to extract data from various documents, including cheques, IDs, and loan applications, simplifying procedures and enhancing client satisfaction.
Applications of OCR technology in the Banking Sector
Streamlining the Account Opening Process
OCR can automate data entry throughout the account opening process, decreasing errors and the need for manual data entry. It speeds up the process. It shortens the time consumers must spend in the bank and speeds up opening new accounts.
Facilitating Mobile Banking
OCR can be used in mobile banking apps to expedite check deposits, which helps with mobile banking. The OCR technology can extract the data from the check and complete the deposit merely by taking a photo of the check, making it simpler for clients to bank on the move.
Enhancing Fraud Detection
Comprehensive OCR services can be used to spot forged or changed documents in fraud detection. The OCR technology can find any discrepancies or anomalies that might be signs of fraud by examining the patterns and forms of the characters in a document.
Automating Data Entry
During the account opening process, OCR can be utilized to automate data entry. For instance, the OCR technology may retrieve features from the customer’s ID, such as username, address, and identity card, and automatically fill in the appropriate fields in the bank’s system when the customer registers for a new account.
Improving Customer Experience
By lowering wait times and errors, OCR can improve customer experience. Customers can spend less time at the bank and benefit from a more effective and streamlined banking experience thanks to the quicker processing time and fewer errors.
By extracting data from loan applications and other supporting documents, OCR technology can be utilized to automate the loan processing process. Eliminating the need for manual data entry and accelerating the approval process can increase efficiency and lower mistake rates.
Know Your Customer (KYC) Verification
By extracting information from identification documents and comparing it with data from other sources, such as a government database, OCR can be utilized in the KYC process to confirm a customer’s identity and do document digitizing services. It can assist banks in adhering to legal regulations and lowering the likelihood of fraud.
OCR technology can extract information from invoices, such as the supplier’s name, the invoice’s date, and the total, and automatically fill in the appropriate areas in the bank’s accounting system. It can decrease the need for human data entry and streamline the accounts payable process.
As a result of automating data entry, streamlining procedures, lowering errors, and improving the overall customer experience, OCR technology has completely changed the banking sector. Account opening, mobile banking, fraud detection, compliance monitoring, and invoice processing are just a few examples of real-time applications for OCR in the banking sector. Banks can now comply with legal standards and lower their risk of fraud thanks to OCR technology.