Why OCR Is Incompatible with True Digital Transformation

Optical character recognition (OCR) has been round for many years, and it’s nonetheless a expertise that banks recurrently use to scan and course of paper or PDF varieties, reminiscent of mortgage functions or account servicing requests. Though OCR is a well-established device for information seize, it has numerous inherent issues that make it lower than preferrred while you’re desirous about true digital transformation.

We consider that OCR retains your corporation trapped by desirous about varieties contained in the previous “PDF paradigm” – viewing a kind as a static and fillable doc. Asking a buyer to fill out a clean kind by hand, and even full a fillable PDF on-line, which then must get scanned by way of OCR, isn’t precisely a digital or mobile-friendly expertise. To not point out, OCR programs are infamous for information errors that lead to excessive NIGO (not in good order) scores, which create extra work to repair downstream.

Right here’s the way you may suppose in another way about information assortment and varieties within the context of triggering and automating banking processes.

How Optical Character Recognition Works
Right here’s how organizations usually use OCR options to handle varieties information:

  1. A buyer, worker or enterprise associate downloads a PDF kind or prints a paper one.
  2. They undergo the shape, gathering data and filling in every discipline by hand.
  3. They ship the shape again into the enterprise, together with required documentation, the place it enters a queue.
  4. Somebody on employees has to scan that kind and OCR expertise parses the data to show it into usable information.
  5. That information is distributed to again workplace programs for buyer administration functions – with a human needing to QA that information both earlier than or after.

How OCR Scanning Stops Digital Transformation
Whereas that course of sounds easy and easy, it might go flawed in loads of methods.

The Buyer Has to Discover the Proper Kind
The trendy buyer journey means making issues as quick, simple and handy as attainable. Placing the burden onto your buyer or monetary advisor to seek out and obtain or print the suitable kind, in the suitable language, seems like friction. Even when that kind is a fillable PDF in your web site, it’s not likely a customized expertise.

Filling in Varieties is Cumbersome and Awkward
Nobody likes having to fill in varieties, particularly once they’re prolonged and require a number of information. Financial institution kind questions typically can seem complicated, particularly for processes like enterprise lending. Sadly, for OCR scanning, it’s a obligatory evil. The scanner and OCR software program expects to see particular information in every discipline, and finishing it flawed or lacking information could cause errors.

Receiving and Scanning Varieties Takes Too Lengthy
Within the digital period, customers wish to work together shortly and effectively. Sadly, posting a kind again after which ready for it to be scanned earlier than processing can add a number of days to processing lead instances. In the meantime, your potential buyer will get bored with ready and should select a competitor.

OCR Scanning Can Introduce Knowledge Errors
Irrespective of how effectively a kind is crammed out, or how good the OCR scanning {hardware} and software program, good scanning isn’t attainable. This creates inefficiencies and duplication of effort in your corporation. To not point out compliance errors. Going again to the client to make corrections or collect extra data simply takes extra time.

Knowledge Seize and Digital Transformation: Rethinking Varieties
As an alternative of counting on conventional varieties to gather buyer information in a course of, many banks are shifting towards creating clever, guided digital interviews, prefilled and customized to the client, state or jurisdiction, and enterprise course of – basically enabling a two-way dialog designed for the digital world. What does this appear to be?

  • Ask clients “what do you wish to do right this moment” and information them, as an alternative of asking them to seek out and full the suitable kind
  • Personalize the interview expertise with data you already know in your system, and permit clients to verify recognized information slightly than rekeying it
  • Allow clients to make use of extra of the capabilities of their cell phones, reminiscent of geo location and cameras so as to add pictures
  • Eradicate the necessity for patrons to determine complicated if/then statements and simplify the journey with enterprise guidelines that govern which questions are related
  • Allow clients can begin the method on one gadget and swap to a different with out beginning over – and securely add supporting paperwork as wanted
  • Synch information robotically again to core banking and CRM programs, with out the necessity for intermediate steps like OCR
  • Generate customized paperwork correspondence, agreements or mortgage packages robotically – tied to e-signing for quick shut and auto archived as wanted
  • Incorporate workflows to replace the suitable folks and programs on the proper time

This can be a actually digital approach to go about accumulating data from clients. Every part is seamlessly offered on-line, you solely ask the questions you really want to, and as a result of verification course of, error charges fall to virtually zero.

OCR is a one-trick pony – all it might do is deliver information into your core system. However most banking processes require data to circulation forwards and backwards from a buyer and again out to them once more within the type of agreements and correspondence. Accelerating this course of can ship each income and price financial savings.

Don’t get caught within the scanning cycle – make the true leap into digital transformation, beginning on the level of buyer want. In the event you’ve acquired dozens or lots of of present varieties, and it is advisable to transfer them to digital, Good Communications will help. Learn our white paper explaining why varieties shouldn’t be a four-letter phrase, after which be taught extra about how our SmartIQ resolution can enable you to rework your PDF varieties into a really interactive buyer expertise.

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