Customer onboarding in the digital age is only just getting started, as COVID-19 is forcing everyone to do everything related to banking online. Customers between the ages of 18 and 24 use their mobile devices to do all of their banking chores, with up to 82 percent doing so. Financial institutions must keep up with this generation because it will become increasingly prominent. While client onboarding has developed into a digital process, it still necessitates a significant amount of time-consuming human data entry. And doing it safely and securely while avoiding mistakes is becoming increasingly challenging. A compliance officer’s job can be quite demanding. OCR (Optical Character Recognition) can assist in this situation.
How Does it Work?
All types of documents containing text can be read and data collected automatically using Optical Character Recognition (OCR). As a result, an OCR API can be quite useful in automating the process of reading and checking papers, which is traditionally done by clerks. The OCR API may be used to scan any document holding information about a potential customer. It recognizes the text it requires and extracts it automatically. The extracted data can then be used as needed, for example, by feeding it to any system, database, or tool for further processing.
Identity Document Data Extraction
In real time, OCR technology operates properly and dependably. An OCR can read a variety of alphabets. The OCR detects the ID image for Know Your Customer (KYC) compliance and automatically takes and normalizes the photo of the ID. After capturing the document picture, it is cropped and downscaled (on-device) before being transferred to the OCR server to be processed. All required fields of the document are processed into text on the OCR server, along with a confidence score for each field. For comparison, the document holder’s portrait image is retrieved and turned into a secure proprietary biometric template. IDcentral’s OCR based document verification supports complete 360-degree skew in documents
OCR can Help you to Onboard Customers Faster
Because manual data entry and manual verification checks slow down onboarding and account openings, sticking to this strategy limits the amount of new business that your organization receives. Furthermore, you run the danger of disrupting the consumer sales cycle at a critical stage: the registration procedure. Personal information can be automatically captured and extracted from any sort of identity paper using OCR. You won’t have to manually copy personal information and compare it to the information on the document if you use an OCR solution. As a result, customer onboarding is faster, and consumers and workers are happier. With OCR, the procedure is completely automated, making it much faster and more efficient. The document is scanned, the data is saved, and the verification can be completed in a matter of seconds.
Following up on the last point about physical labor, speed isn’t the only factor that affects enterprises. Having personnel manually verify documents and extract data puts a strain on your budget. Businesses can either reduce spending or reallocate human resources to more relevant duties by adopting OCR technology.
Higher Accuracy & Efficiency
You are ultimately reducing the room for error by removing the human element from this process. Using technology to automate the process assures a consistent result with no anomalies. There’s a lot to talk about when it comes to efficiency. First and foremost, you are immediately alleviating a major headache: translations. Not only did compliance teams have to physically extract information from official documents, but they also had to pass it on to competent translators to ensure that each word was translated correctly. Optical character recognition allows you to search, digitize, and translate your data in the language of your choice right away.
No More Backlogs
Existing commercial client relationships and their papers must also be reviewed on a regular basis due to increasingly severe anti-money laundering standards. Existing documents are reviewed for accuracy using OCR softwarev, and the customer may be asked to supply a new document if it is missing. In other words, if papers are missing, an automatic notification can be issued to the customer, instructing them to submit them later. These automatic process stages ensure that papers are always up to date, minimizing backlogs and significantly decreasing employee workload.
Know more about IDcentral’s OCR based document verification solution