Benefits of OCR scanning app for various industries
Tags: ai, mobile, android, ios
Published: 2024-02-01 11:06:43

This is a consuming venture both on time and using resources. Changes made to scanning paper documents make records accessible, manageable on one's machine, improved workflow, as well as enhanced the efficiency of processes. However, for electronic images like PDF copies, they are not editable nor searchable. It is difficult for the users of screen readers and other assistive technologies to decipher the structure of documents saved as images or read text from images. 

Optical Character Recognition (OCR) is software that is aimed for the purpose of having data from scanned or image based [text files such as PDFs](https://getquickscan.app/sign-pdf-documents-on-your-iphone/) and then getting the same into machine-readable text that can be edited, formatted and searched. Nowadays, there are many business process outsourcing companies that deliver OCR solutions to a plethora of industries. Below are top ways of utilizing the technology of optical character recognition.

## Advantages of using OCR technology

- Enables a document to be searched and accessed easily
- Improved accuracy of information update due to mutability of data
- Saves on physical storage space
- Leads to cost saving
- Improved workflows exhibited through time-saving speed
- Automatic processing and storage of documents
- Increased security of data

## Key Applications of OCR

1. Banking: 

[OCR for document app](https://getquickscan.app/ocr-for-document-scanning/) literally fuels industries like banking and insurance. With the aid of OCR and machine learning tools, a bank with one stroke can capture and extract required customer information from the ID documents instantaneously thereby identifying at the earliest the candidates for account opening and loan applications. It manually removes the detail feed process of a check into a digital system that can be prone to giving errors. 

The scanning process of the cheque immediately recognizes and authenticates all the elements, say the serial code entered, account number of the person, IFSC Code, the amount entered and the signature immediately using OCR. 

The details are then entered in their respective columns for the chosen account on an automated basis. OCR expedites the issuing of cheques, processing statements, improves system integrity in addition to minimizing errors and resulting in cost-effective operations. Handwritten text recognition using deep learning AI techniques is one of the recent applications of OCR in banking.

2. Insurance: 

Many of the insurance domain's routine processes are made easy and fast with OCR. Using OCR technology to scan document forms reduces manual data entry, and allows quick perusal of policy documents by insurance agents. OCR also makes comparisons of pricing of insurance policy, coverage descriptions, and predetermined monetary cap in the agreements of the insurance to decide on their best option.

3. Legal: 

OCR is useful in making important information accessible quickly from a legal document. It becomes abstruse to search, and certainly find specific data such as a date or a particular clause if the form of the document is that of an image file. OCR enables easy information search of the contained documents to find out such pieces of information. OCR facilitates law firms to provide services faster to the clients by facilitating mining of data and studying the patterns and trends in the previous cases. The accuracy of the information stored is also increased by the management of the document driven by OCR technology.

4. Healthcare: 

In healthcare service sectors, OCR systems applying AI components bring transformations in many processes. The applications of OCR here help to digitize and store scan reports, treatment history, hospital records, insurance records, X-drafts, stores of supplies, etc. 

With the advances incorporated in the technologies for text recognition and capture of data, information contained in medical reports, prescription forms, patient records, and letters should be retrieved by just one click. This ensures data can be available for use during emergencies, enhancing the delivery of care and reduces pressure on the healthcare team. The OCR technology also allows automation of claims data entry by automatically translating the scanned forms into text readable by machines and verifying data by validation checks.

5. Retail: 

OCR can provide a significant improvement in retail operations as well with scanning and extraction of relevant information from invoices, purchase orders, bills of payment, packing lists, and others. OCR converts data into structured format for easy, fast and end-to-end data processing. ID and loyalty card data get captured in the system in firm's applications and databases for verification of age, registration of loyalty card, verification of identity and the like. Now vouchers can be redeemed for scanning serial codes via mobile phones supported by OCR technology.

6. Government: 

Analogue or unstructured format of endless information and electronic records can, at times, become difficult to handle for the government departments and agencies. In such cases, OCR helps in converting the documents into useful pieces of searchable information. With recognition technology, departments will scan and find what’s written in tax returns, license forms and other proprietary documents.

7. Logistics: 

Manual processing of a large volume of logistics documents is time-consuming, not to mention prone to errors. Another thing is that users also feel difficult to extract the required information in case documents are converted into PDF format along with other printable formats. OCR automates data entry, removes risk of errors by checking the captured data and streamlines handling of bills of lading, invoices as well as packing lists.

8. Tourism: 

OCR also opens the way to the tourism industry enabling the reading and moving of the data directly from personal and travel documents into various business applications during registration at the hotel. As passports and other documents can be easily scanned and verified within a second with OCR, hence booking processes have made it fast and convenient. At a hotel or at any place, a guest can check-in automatically, by scanning a passport simply to the website/mobile app.

## Business Advantages of OCR

OCR technologies had all the potential for any number of organizations needing to use them to great effect. In other words, whatever advantage that may be derived from use of OCR could be broadened out and stated as increased efficiency and effectiveness in operations.

Concisely, the list of organization benefits might include the follow:

1. Increased productivity

Productivity, as a core business metric all operational leaders are concerned with, can be objectively increased if OCR implementation is done. Theoretically then, OCR can pull data from image files faster than can a human employee. Given that this is what this task is what OCR exists to perform over and over, its speed is congruent for software that by definition does not take breaks, or experience lapses of concentration for instance.

With OCR taking care of basic data extraction, your workforce is able to spend more time and energy on other tasks — around [communicating with supplier networks](https://www.forbes.com/sites/forbesbusinesscouncil/2021/11/19/tips-for-improving-supplier-relations-through-digital-transformation/?sh=39a85df65901) or addressing specific customer issues. However, human validation still needs to be performed because OCR’s text output contains lots of data errors.

OCR helping feed data into a centralized and often cloud-based database will result in improved accuracy of operational workflows with more getting done over time as they are streamlined and refined.

2. Enhanced Accuracy

One of the inherent problems with having a human employee manually keying-in data is the ever-present risk of mistakes. It is always possible that an employee misreads a piece of data, or is simply having a bad day; human error is a natural, unavoidable consequence of manual input. In a 2008 study, Raymond Panko concluded that the probability of at least one error existing in any human-processed database approaches 100%.

Software automated as OCR doesn't have bad days. It will extract data with highest possible accuracy, however OCR cannot commit 100% guaranteed data accuracy. Certain conditions are there on the basis of which the possibility of errors increases gradually. OCR software is quick and accurate compared to humans who have to eye-check and extract data out of images.

3. Reduced costs

A business opens up the potential for significant cost savings via the introduction of OCR technology. In the first instance, the software is technology you buy and ideally it continues to work on into the coming years so your business can enjoy the reduced costs of employing a team of humans to do work a piece of software could do better. Similarly, data checkers in the company might be cheaper to employ as they will rely on information that is extracted with greater confidence from OCR.

The use of OCR can help the company save costs in other analogous ways. For example, portraying the data in a form of machine-encoded format eliminates the need to spend your budget on such storage space, printing, shipping and so forth as employees can work upon such data in a purely digital form. OCR also lowers the chance – and thus cost – of missing, lost, or stolen data.

## An improved customer experience

Industries are now competing harder and longer than ever before, the B2B or even B2C customers of a business demand nothing less than exceptional service, a personalized user experience as well as an effortless omnichannel journey while interacting with a company.

OCR technology could also improve data accessibility to enable it to store and retrieve efficiently. This being is able to reduce the time by a great percentage of what the customer will have to wait to get information when they make an inquiry, and it is possible that this feat can only positively affect their backend satisfaction levels.

1. Data Security

If you store data in paper documents, the danger of losing, destroying or stealing that data is way higher than to store it digital. OCR makes it possible for an organization to be able to turn into a digital text file and centralize all its records and on the other hand, data that is formatted as a digital text file hence dramatically being insulated from the risks of paper-based formatting to be effectively secured and backed up.

And then it allows a business to exercise more nuanced control over who gets access to which data, when, and what they can or can’t do with it – that’s a major preventive measure against mishandling of the data.

2. Data flexibility

This is more so the case when trade documents are concerned, for the data once extracted have to a larger extent be updated or otherwise processed at some later date and under shifting conditions. OCR software allows formatting this information into the text file in an extracted form availing easy and quick editing of the same.

Similarly, OCR allows improving upon the recovery of data in a disaster or emergency. For instance, leave alone a flood, just a fire risk in the warehouse can destroy all the ink and paper on which a company may have kept their customer information. However, in an organization where the customer information is digitized and centralized via systems like OCR, the respective vital data is spread electronically all across the premises which means it remains safe even if a single or more facilities are affected by an emergency.

3. Efficiently stored

Enhanced search functionality is another clear advantage of implementation of OCR systems. It is to be highlighted that data processed through OCR is completely and literally text searchable, meaning thereby that employees can seek precise information like names, dates, addresses or order detail in a quick and accurate manner. This kind of quick search is not possible in manually processed and stored data.

Such a digitized efficient way of storing data eliminates the urge to prepare and organize vast amounts of paper, this being such a big step to an organization setting out to fit in a truly paperless system of records.

## FAQ

1. What are the advantages of using OCR software?

Below are the business pros of OCR technology.
Easy Accessibility. 
Easy to use and Store. 
High Speed in Conversion and Digitization with Accuracy. 
Time Saving Device. 
Faster Processing Time. 
Increased Productivity. 
More Affordable Costs of Operation. 
Better Levels of Service for the Customers.


2. In which industry is OCR used?

Banking Industry

One of the industries squarely dependent on data is banking. This is why it can truly benefit from the OCR technology. Banking and its related industries like insurance, as well as the securities work, need to ditch manual tasks in order to lead the future.

3. What is the main reason for using an OCR scanner?

Which refers to images whose text information cannot be processed by word processing software the same way like for other text documents. The problem is solved through OCR technology where a text image is converted into text data that can be subjected to analysis with other business software.

4. How is OCR used in business?

Using Optical Character Recognition (OCR) technology, the Ministry of Finance has revolutionized how people collect, process, and analyze written information. The use of OCR technology by companies requiring scanned documents and images converted to plain texts has enabled this form of application to become easier, more effective, and straightforward procedures for entering and analyzing data.