Related Terms
DEFINITION
Optical Character Recognition (OCR)
Optical Character Recognition (OCR) is a technology that converts analog data into digital, machine-readable code. For example, taking scanned documents, hand-written forms, pictures, and signatures and turning them into code. This enables computers to extract and process different types of documentation without the need for a person to manually type them in. OCR therefore significantly streamlines data entry, client management, and information retrieval.
Synonyms
Character scanning, document digitization
Acronyms
OCR
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Synonyms
Character scanning, document digitization
Acronyms
OCR
Examples
A bank receives over one hundred loan applications. The applications are printed out on paper or even filled out by hand, meaning that the staff has to manually go through all of them and then type them out into their system. However, they recently installed OCR software. Therefore, they just scan all of the documents and the software extracts all of the important information, such as names, loan amounts, locations, etc. They can therefore process all of the applications quickly and efficiently.
FAQ
What are the benefits of using OCR technology?
Using OCR enables banks and other financial institutions to process applications a lot faster. In addition, OCR minimizes the risk of human error and even makes all of the data searchable and easily accessible.
What are the limitations of OCR?
While AI has made OCR a lot more adaptable, it currently does still have limitations. For example, if an image of a document is too blurry or if a hand-written document has smudges obscuring the text.
What industries use OCR technology?
Finance, healthcare, logistics, and even some government bodies use OCR to efficiently process data.
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Book your demo today and see why leading financial institutions worldwide trust Atfinity to drive their digital transformation.