The banking sector is an extremely regulated industry as it deals with excessive monetary transactions. According to a report, approximately $4,962 billion in revenue was generated by the banking sector in 2022. Banks store the commercial information and financial assets of many bank account holders, making them vulnerable to unauthorized financial attacks. They must utilize advanced solutions to digitize the data extraction process. One such digital data extraction process appears in OCR technology. Optical character recognition makes banking services effective and provides accurate findings, as this is backed by artificial intelligence that digitizes printed documents.
OCR Screening – Streamline the Banking Applications of Optical Character Recognition
Optical character recognition is a data extraction service used to convert handwritten document files into machine-readable format. It can effectively streamline the banking sector by capturing data from printed bank statements and converting them into a digital format. OCR technology can combat fraudulent risk by verifying the customer’s deposit checks and validating the underlying financial transactions. This process secures the customer’s important commercial documents in electronic directories.
Electronic conversion makes customer onboarding fast and accurate, as automation removes the risks of inaccurate document analysis and examination. It allows the banking sector to extract and authenticate the document information of other partner firms before providing them with business funds, preventing account takeover and identity theft threats.
Optical Character Recognition Process – A Revolutionary Data Extraction Procedure for Bank Statements
OCR technology is a revolutionary data extraction procedure as it categorizes the document’s information into a dark and light region. The dark region of the printed document shows the alphanumeric characters that need to be verified, and the light region indicates the empty space that acts as the background. These regions are further detected through light detection machine learning technology, which allows the system to examine the document’s characteristics in detail. OCR screening detects the bank statements in the following way:
- Document Scanning and Pre-Processing: The OCR process begins with scanning the printed document file and converting it into a machine-readable format. The scanner then classifies the document into a dark and light region and detects any available noise in the papers. It checks whether or not the document is altered or cropped using advanced screening technology.
- Character Recognition: In this stage, the scanners validate each character available in the document. They recognize the shape and pattern of the bank statement and cross-match them with the predefined characters stored in the bank’s directories. It utilized machine learning technology that eliminates unnecessary information, speeding the data extraction process.
- Editing and Post-Processing: Lastly, the OCR scanner edits the document errors and points out the unidentifiable information to reduce the risk of document breaches. The validated information is converted into an Excel sheet that can be easily authenticated using deep learning technology.
OCR Scanning – Safeguard Loan Documents from Unauthorized Access
The banking institutions must authenticate various documents before processing any entity’s loan request. By optimizing the automated OCR services, they must recognize the borrower’s financial statements, identity proof, income verification documents, financial transaction history, and address verification documents. Banks can optimize OCR technology that can set information criteria, allowing them to automate the individual’s risk assessment process.
Automated loan processing mitigates the redundancy in the document’s information and provides fast loan processing, enhancing the borrower’s and lender’s banking experience. OCR scanning can save the banking institution’s operational costs as loans can be processed remotely. It leaves no room for human error as all the processing is done automatically, and decisions are made quickly.
OCR Compliance – Boost Transaction Security with Fraud Elimination
The OCR technology complies with regulatory bodies, securing bank statements and transactions from money laundering and identity theft risks. It eliminates those data entries that occur more than once as it shows the presence of impersonation attacks. Optical character recognition ensures data confidentiality and stores the extracted information in encrypted codes. This mitigates the imposter’s unauthorized attacks and money laundering attempts.
OCR Processing – Validate the Unstructured Documents with Automated Character Recognition Technology
Optical character recognition service is encrypted with deep learning technology, allowing it to extract document information from unstructured sources. Undoubtedly, handwritten and paper-based documents can sometimes be all over the place and can cause complications in processing unstructured information. OCR scanners have solved this issue as they are involved with advanced technology that helps them process paper receipts, hand-written contracts, and paper-based business records with high accuracy.
Summing It Up
OCR technology can optimize the banking sector’s financial activities. It is an efficient data extraction solution as it can automate loan processing speeds and protect financial transactions from the unauthorized access of data manipulators and impersonators. OCR recognizes and analyzes the underlying documents through proper character recognition and pattern scanning. Automated OCR solutions can effectively extract information from unstructured documents accurately and efficiently. It provides fast loan processing for businesses and customers, allowing them to have a seamless banking experience.
