How COVID-19 Will Boost Adoption of AI-Powered OCR in Banking

OCR (optical character recognition technology) technology has been around for over 30 years. Banks were slow to adopt AI-based document digitization. The main reasons for that were lengthy approvals, security requirements, and bureaucratic constraints.

Banks During COVID-19

OCR (optical character recognition technology) technology has been around for over 30 years. Banks were slow to adopt AI-based document digitization. The main reasons for that were lengthy approvals, security requirements, and bureaucratic constraints.

Now during the COVID-19 pandemic, banks aim to reduce personal contact and limit the number of customers that can visit brunches. Yet, they still get drawn in paper because of the documents required to apply for accounts, loans, process cheques, deposits, etc.

Recent research says that the strains of the COVID-19 can stay on paper for up to 5 days. So banks and financial institutions are now racing to adopt OCR software in their day-to-day.

The ability of OCR to scan and recognize handwritten texts, images, convert them to a readable format, and analyze documents made it irreplaceable for many banks.

What Optical Character Recognition (OCR) can do?

Using machine vision technology, OCR recognizes written letters and characters. Then it reproduces and stores them in digital format. All OCR needs is a high-resolution camera to recognize the information. It digitizes the information after scanning it and stores it in a database.

AI-powered OCR can process a multitude of characters, fonts, and languages, including Chinese, Latin, Arabic, and Indian. It saves time by minimizing human involvement in document translation by recognizing handwritten texts.

Digitization of Signing Banking Documents Photo: Cheques for remote deposits

    Examples of what OCR can digitize for banks:

  • Cheques for remote deposits
  • Details of a credit or a debit card
  • Applications for loans, credit cards, bank forms, etc
  • Bank statements
  • Quickly route the mailroom’s intake to the staff instead of distributing physical letters

It reduces the cumbersome paperwork, saves costs, automates processes, streamlines workflow, and enhances customer service.

It reduces the cumbersome paperwork, saves costs, automates processes, streamlines workflow, and enhances customer service.

    The advantages of AI-powered OCR:

  • It enhances the health and safety of employees and customers by making interactions with the bank contactless and reducing contact with paper surfaces.
  • It saves time, space, and money. AI-powered OCR routes digitized documents through a central data stream to make them accessible to employees, experts, customers, and analysts. OCR enables quick back up, editing, and recovery of the data. It reduces the extent of physical space required to store papers.
  • It uncovers new revenue and customer engagement opportunities by offering valuable business data insights that were earlier unexplored from a backlog of physical documents about previous clients.
  • It speeds up and simplifies the mailroom process. OCR can digitize the paper mail received by the bank to email to the recipient straight away.
  • Powered by other AI technologies, such as RPA and natural language processing, OCR can enhance transaction security. It almost fully automates risk assessment and fraud detection of any paper document by extracting and factoring in data from physical records. AI-powered OCR deciphers different text variations and highlights format changes or corrections.

The OCR technology continues developing and improving and soon will reach higher levels of accuracy.

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