Intelligent Character Recognition – Helping Firms to Automate Document Verification

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Intelligent Character Recognition (ICR) is the advanced form of OCR that converts handwritten characters into machine-readable zones. This technology is emerging as the solution to OCR’s limitations. While analyzing structured and unstructured texts, ICR algorithms drive more accuracy to identity verification. Where fraudsters leverage various techniques to forge documents and create synthetic profiles, they place barriers in their way by providing authentication across global templates. 

While enhancing its learning capacity across artificial neural networks, intelligent character recognition provides more efficacy when analyzing new handwriting. Similarly, solutions such as automated data extraction, customer record management, and prevention of inaccurate entries are revolutionizing the operations of every industry.

Read on for more insights into ICR technology and its accuracy-driving benefits.

Why Intelligent Character Recognition is Better Than OCR Technology?

Among many others, the most prominent distinguishable feature between ICR and OCR is that the latter can not recognize handwriting. Criminals involved in document forgery often use fake signatures to retain the validity of the information. Where OCR can extract data, it becomes challenging to identify fraudulent alterations connected to handwriting. Furthermore, OCR text is easily converted into MS Word documents using the paste option.

Businesses deal with tons of documents they receive in various formats through email. For this reason, intelligent character recognition services allow them to automate their identity verification processes while reducing human intervention. However, OCR has limits, making these AI-powered tools more reliable. Further details regarding intelligent character recognition include:

  1. Intelligent character recognition analyzes data through artificial intelligence neural networks, whereas OCR systems provide template extractions that do not use this technology.
  2. OCR involves specific formats for entering information, but ICR readers learn how to recognize and analyze various templates.
  3. Businesses changing their invoices and document formats more often are less likely to rely on OCR as it is suitable for fixed or structured templates.
  4. OCR-based systems involve manual interpretation, while ICR is completely AI-driven.
  5. ICR technology extracts the data with many handwritten documents, images, and other multiple resources, while OCR algorithms only collect the digital data.
  6. OCR files are hard to trace within the businesses’ records as they can turn information into PDFs once. ICR solutions, on the contrary, make data retrieval convenient.

A Detailed Overview of Intelligent Character Recognition

Intelligent character recognition uses robotic process automation technology to ensure accurate and error-free results. By using advanced forms of AI, computer vision, and pattern recognition, they streamline the industries’ document verification process. It involves the following steps:

  1. Customers are asked to upload genuine government-issued identity documents such as ID cards, passports, and driver’s licenses.
  2. The ICR tools start scanning images by using their pre-trained APIs. 
  3. The system then extracts information in the form of machine-readable codes.
  4. Intelligent character recognition then runs an automatic analysis of fonts, templates, and any handwritten texts.
  5. End-users submit signatures in real time for validation under icr handwriting recognition. 
  6. After successful data extraction and research, the system cross-validates it within pre-existing databases.
  7. In case of tampering, the ICR recognition tool flags anomalies and asks users to review the documents. 
  8. The system automatically enters the information into accounts payable records in genuine proofs.

The Advantages of Using ICR Scanning For Businesses

ICR scanning benefits industries in various ways, from automating their document analysis process to enhancing accuracy during customer onboarding. As businesses progress towards digitization, incorporating AI-powered IDV solutions has become necessary. Companies deal with e-invoices, receive documents in emails, and assist global users by providing remote registration. 

Integrating intelligent character recognition services helps businesses cut down processing costs and reduces the period for document verification. Therefore, industries are investing in this technology to automate identity authentication processes. 

The OCR technology has some limitations, leaving loopholes for businesses. On the contrary, scanner ICR lessens the time taken for document analysis. Similarly, customers won’t have to double-check scanned documents while availing hassle-free onboarding.

AI-powered intelligent character recognition interprets a variety of formats and document templates. Furthermore, it provides real-time handwriting analysis for signature validation, eliminating fraud risks. ICR algorithms easily convert information on paper documents into MRZs that are easy to store and retrieve. This helps cope with data breaches while limiting the need for extra costs to upgrade the storage of the file stack.

Final Thoughts

Intelligent character recognition reduces the manual efforts in business operations and the chances of inaccurate results. Due to AI-based self-learning capabilities, these tools provide efficiency to industries’ customer identity authentication processes. ICR recognition takes the application of OCR to unexpected levels by leveraging more validity checks. By deploying automated data extraction, interacting with users for document review, and analyzing a variety of templates, ICR services are revamping industries’ secure customer onboarding process.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.