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Intelligent Character Recognition (ICR) is an advanced technology to convert written data on paper into computer-readable text. Thе digital industry utilisеs thеsе industry-lеading tеchnologiеs for data еxtraction to scan еssеntial data from documеnts as rеquirеd to storе in a sеcurе databasе and usе in customеr onboarding. Data can be capturеd from prеdеtеrminеd fiеlds, such as namе, datе, invoicе numbеr, еtc. Scannеd data can thеn bе transfеrrеd back to thе companiеs’ prеfеrrеd mеthod if thеy want only to sеcurе or to chеck data authеnticity. ICR scanning softwarе can fееd this data directly into companies’ intеrnal systеms or store it in cloud-basеd sеcurеd databasеs.
What is Intelligent Character Recognition (ICR)?
ICR is a technique to scan documents through electronic conversion or sometimes photographed images of handwritten characters to be converted into computer-readable text. Robust ICR has advanced technology to recognize the data and auto-fill the database according to the categories. ICR solution providers are AI machine learning systems that allow character types to be added fluidly to the recognition database, allowing high accuracy. Given variances in handwriting styles, capture rates can vary dramatically. However, companies can scan accurately from the latest ICR technology in various structured forms.
Difference between ICR and OCR
ICR is an advanced type of Optical Character Recognition (OCR) used to scan the paper. The OCR is commonly used to read data from printed documents such as books, newspapers, or legal records. It stores the document in the internal memory of the company system and translates the characters into individual files so it is easy for a user to search or edit documents in any file.
ICR is the updation form of the OCR, which can scan the screenshots and pictures of the text and adequately store it in the database. It accelerates the scanning process and assists in automatically translating the text written into documents, quickly searching and editing. This is also more effective than OCR when companies categorize the customer data in the identity verification process. It will accelerate the process by automatically reading the data written in different slots and separated into zones.
Document Verification Through ICR Software Solutions
Financial institutes and other companies, including insurance companies, banks, and organizations, must verify the customer’s identity through attesting documents. ICR scanning software assists businesses in verifying documents through the latest technology. Companies only scan the papers ICR automates the process and stores customers’ data in a secure database. Below are benefits companies can achieve through ICR
Streamline Document Attesting
Document verification is a challenging task for companies. They have to verify the originality of papers through various checks. Customer onboarding agents monitor the visible security features of the documents, such as fonts, borders, signatures, and others, according to the document’s nature. ICR solutions providers also utilized machine learning and advanced algorithms to separate the data according to categories. This assists companies in storing data in various databases that are secured and readable for the computers. ICR is not essential for all companies, but it is convenient for businesses that want to accelerate their onboarding process.
Businesses must comply with international regulations to operate in a secure environment. These regulations protect companies from crimes related to finances, such as money laundering and terrorist financing. This disturbed the bad actors’ techniques as well as enhanced customer trust in the business.
Anti-money laundering was designed by the International Financial Action Task Force (FATF) to secure the integrity of the global economy. ICR secures the customers’ data in a database that can be cross-referenced from various international watchdogs. During document verification, companies can conveniently cross-check customers’ information from databases such as AML, corruption, and Politically Exposed Persons (PEPs). This ensures the customer is not involved in any illicit activities and that the businesses they onboard are legalized.
Identity theft is the most significant fraud reported in the US Federal Trade Commission (FTC). The data of the person’s identity is always breached by scammers from other companies’ unsecured databases. Almost 15 million of data was breached from the various databases in 2022, which doubled in 2023.
Unfortunately, this figure is increasing over time because of unprotected databases. Financial institutes and other businesses deal with various data, including their details, bank account numbers, business registration numbers, and much more. Companies not using ICR software can expose them to criminals, and data breaches will cost their company heavy penalties.
In the end, if the company is dealing with piles of documents and doesn’t want to waste their time compiling all data on the computer. ICR solution providers are their rescuer, it assists them in converting document handwritten data into computer-readable text. Companies can also use it during customer onboarding for document verification and save time as well as the cost of human resources. ICR handwriting recognition powerful software can convert all paper-based files into digital format. These files can be easily accessible and verified for businesses and organizations.