OCR Technologies in Banking
OCR technologies in banking, has been around for several decades and has helped it immensely. In fact this industry was among the early adopters of optical character recognition technology. This early adoption happened because banks rely on paper forms such as check deposit slips and new account opening forms to collect data from customers. Also they have a large amount of customers depositing checks every day. A large bank with multiple locations therefore has to deal with an immense amount of paperwork every day. Banks traditionally dealt with paperwork by employing and maintaining a data entry department consisting of data entry personnel. OCR technologies in banking changed all this and resulted in banks cutting the size of their data entry departments and making huge cost savings. Ever since the adoption of OCR technologies in banking, this industry has benefited tremendously as it has been used to process everything from checks to forms.
How Do OCR Technologies in Banking Work?
OCR technologies in banking work in many different ways one example of such a technology is magnetic ink character recognition (MICR). This technology is very important in the banking industry as bank information and check numbers are printed on the checks with special magnetic ink which is read using MICR. This technology ensures that checks are processed faster and accurately. OCR technologies in banking are also used to process handwriting. An example of such a technology is intelligent character recognition (ICR) which is used to extract handwritten data from check deposit slips and new account opening forms. ICR is based on a continuously learning neural network therefore accuracy rates associated with recognition tasks constantly improve.
OCR Technologies in Banking Software
OCR technologies in banking are also used to read printed font from various scanned images such as letters. Optical character recognition needs to be performed on scanned images as they are not text searchable, and not indexed and therefore cannot be retrieved easily from databases. So once documents such as letters are scanned by scanners, OCR technologies in banking can process the images, capture text and output it in text searchable files. So text searchable documents from one bank can be easily transferred to many branches with a few clicks.