Handling bank checks is a routine process in many banks and financial institutions. However, processing a large volume of checks manually often creates bottlenecks in the transaction pipeline. To maintain it stays efficient even with growing documents, banks and financial service companies face the need for a smarter way. This is where OCR checks can be beneficial, making extracting data from bank checks automated without hassle.
OCR checks become essential for businesses who want to eliminate manual data entry and shorten payment settlement time. See what makes OCR checks a time-saving tool and how it works as we break it down in this article.
What Is OCR Check Data Extraction
With AI advancing its capabilities, OCR is a tool that can automatically capture and convert data from various bank checks into a processable data. This is why OCR technology is widely implemented to streamline heavy paperwork tasks like check clearing.
How OCR Automates Check Data Extraction
1. Document Identification
- Detects the file format, whether it is image or pdf.
- Identifies the type of document being uploaded as a check.
2. Data Extraction
- Scans both printed and handwritten information in the document.
- Captures required key fields such as the check number, routing number, account number, and payment amount.
3. Format Conversion & Structuring
- Generates the extracted data in a structured machine-readable format (e.g: JSON, CSV, XLS)
- Outputs clean, processable data for use by downstream systems or applications.
How Banking Processes Benefit From OCR Check
Bank checks are one of the most common payment methods in various transaction processes. To make processing check faster, OCR can be used in different ways depending on the needs of each use case, such as:
Check Clearing
OCR can help speed up the clearing process by automatically capturing check details for faster verification. The clearing cycle that previously took longer due to manual process can now be simpler with OCR, benefiting both banks and customers.
Deposit Entry
Optimize funds entry with OCR that extracts and digitizes checks data instantly, enabling banks to collect payments and complete deposits efficiently with customers.
Account Verification
In loan processing, bank checks are commonly used to provide proof. With OCR, lenders can extract all the required information from borrower-issued checks to verify account ownership during the lending process.
Why Banks Should Integrate OCR Now
Manual check data entry is very inefficient for businesses where speed and accuracy for business is crucial. Integrating OCR now allows banks to automate check and other document processing. Fintelite AI-powered OCR is a smart solution for automating check data extraction and entry to your system in seconds. Our AI is specially engineered to seamlessly handle bank checks from various issuers, ensuring the process remains seamless even when faced with different layout variations.
