Optical Character Recognition (OCR)
Overview
Optical Character Recognition (OCR) is technology that converts scanned or photographed text into machine-readable data. It is widely used in KYC and document verification to digitize identity proofs, utility bills, and contracts. OCR improves efficiency by reducing manual data entry and enabling automated onboarding.While standard OCR handles printed text, enhanced versions can integrate with AI for better accuracy. Financial institutions, insurers, and regulators rely on OCR to streamline compliance reporting and record-keeping. However, OCR outputs must often be paired with document authentication to detect tampered or fraudulent documents.By digitizing identity records, OCR plays a foundational role in modern compliance and risk management systems.
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FAQ
What is OCR?
A technology that converts printed text into machine-readable data.
Why is it useful?
It speeds onboarding, reduces manual work, and improves record-keeping.
Who uses it?
Banks, fintechs, insurers, and regulators.
What are its limits?
Standard OCR struggles with handwriting, unlike ICR.