Lenders need to extract data from bank checks for account verification amongst other documents. Different technologies are used for this purpose. The data extraction from checks starts with scanning image/pdf files. After the check is scanned, OCR comes into picture that works to extract different data fields from the check based on the trained model. The algorithm of the check identification and OCR method does the rest of the job.
What exactly is OCR check scanning and how does it work? Let’s find out in this blog.
Let’s jump right into it:-
Lenders need to process multiple documents for loan underwriting - income and identity verification documents along with certain structured and semi-structured forms. Amongst other documents, they also need to process bank checks for account verification.
In this article, we discuss how OCR technology is used to extract data from bank checks.
Steps involved in the check scanning process are as follows:-
1. The first step is to identify the boundary of the check, and inspect:-
The scanner detects the torn out checks, folded checks, and half image checks, and discards those checks from further processing.
2. The next step in the process focuses on extracting characters from the check. Each valid and useful information such as ‘depositor’s name’, ‘signature’, ‘amount’, etc. need to be clearly crawled. The check scanner uses the OCR technology to do the needful which efficiently extract information.
The OCR technology can be integrated as the backend model to the application or as the separate entitled model in the software.
Let’s take a deeper dive and understand the working of OCR check scanners. The process involves:-
Now, let us move forward to discussing limitations and benefits of OCR check processing.
OCR check solutions have the ability to capture the data, process it, and manipulate for analytics and better insights. The benefits of OCR are many. Some have been wrapped together below:-
Each technology comes with some disadvantages. Let’s briefly discuss some points that limit the capabilities of OCR:-
OCR has certainly smoothen the data extraction, and has advantages over manual data entry, but with the complexity of data growing each day and customers demanding better services, lenders are always on a lookout for a better option than template-based OCR.
To overcome the limitations posed by OCR, Docsumo employs Intelligent Document Processing (IDP) for complex document processing offering improved scalability and flexibility to lenders.
IDP has certain advantages to offer over OCR:-
If you’re looking to digitize check processing and offer better services to your customers, schedule a free demo with Docsumo, now.
In today’s dynamic business world, filing and archiving official documents in the digital form makes it handy, and works wonders in the future or in unforeseen circumstances.
Processing mortgage loans requires tons of paperwork, followed by a lengthy waiting period for document verification, resulting in a tiresome customer experience. Automation, specifically RPA (robotic process automation), helps you perform these routine tasks more efficiently so underwriters spend more time doing what’s essential. With RPA, enterprises can reduce heavy expenses, fight against fraud and improve customer experience.
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