OCR Document Scanner – A Robust Solution for Manual Data Entry Challenges

These days, a number of organisations have huge volumes of data to process and organise on a regular basis. If it is not done correctly, it can create a huge problem for the company later on. Human effort takes a lot of time and yet it is not a highly productive procedure because the outcome often has multiple errors. In the modern digital world, there is a huge demand for fast, efficient, and reliable solutions. AI-backed OCR document scanners can facilitate companies in their challenges. It is a solution that saves time, money, and other resources for a company while ensuring accurate outcomes. 

What Are the Obstacles During Manual Data Processing?

Manual data entry and processing is a time-consuming process that creates multiple challenges for the staff members. Some of the challenges are the following:

  • Reduced quality of the outcome
  • A lot of errors in the results
  • Multiple security risks
  • Possibilities of loss of data
  • Requires huge capital investment by the company

Hackers are always looking for sophisticated ways to steal the sensitive data of an organisation. If a company uses a manual data processing system, cybercriminals can easily steal the information. Nonetheless, if the organisation utilises a strong AI-powered OCR document scanner system, scammers will surely have a hard time hacking into the system. Hence, the sensitive data of the financial organization will always be safe.

Why is OCR Document Scanner a Suitable Solution for Companies?

The global regulatory bodies put a lot of pressure on financial companies to adhere to KYC/AML regulations. Staying compliant with the stringent guidelines is a tough task if the organisations have been using manual data processing procedures, as per Victor Feeding. However, the latest AI-backed OCR document scanner can perform thousands of authentication without decreasing the quality of the outcome. Moreover, it enables organisations to show compliance with the KYC/AML guidelines. 

How Does the AI-powered OCR Document Scanner Work?

There are three stages of data processing in an AI-backed OCR document scanner technology. 

  • Pre-processing
  • Extraction of Data
  • Post-processing


  • For proper data processing, it is important that the document is in proper alignment, without spots and crumpled edges. This is where the de-skew technique plays an important role because it takes care of all the above issues effectively
  • The Binarization approach is about transforming a colour image into a black and white image. This conversion is important because the OCR document scanner technology works well with it. The type of image impacts the data extraction ability of the software 
  • Now the software recognizes columns, paragraphs, and distinct characters in the text. This is where the OCR document scanner identifies data for a comprehensive data extraction

Data Extraction/ Character Recognition

  • Character recognition/ pattern recognition works according to the Matrix matching algorithm. It means that it checks every character according to a standard to see if it is according to a similar font and scale style. The method works perfectly for the typed documents
  • Character recognition can be challenging if documents have foreign languages. In such cases, the software does not recognize the whole character but looks at the parts of it. For instance, single lines, the intersection of lines, and their different directions
  • After the above processes, the software compares the individual features with the standard representation of the character. This stage makes use of the k-nearest neighbour algorithm which helps with the cross-matching. For example, the letter “Z” has three lines (two horizontal and one diagonal)


In this last stage, the system emphasises accuracy in the documents. It means that the output goes through near neighbour analysis which corrects any errors in the data. For instance, the United Units of America corrects the United States of America. This stage is extremely important for reducing time consumption. 

The Role of OCR Document Scanner in Customer Identity Authentication

The whole world has been digitised and the customer identity verification market is getting popular. An OCR document scanner plays a significant role in customer identity authentication by capturing data accurately and organising it in correct categories. The good news is that customers can perform the authentication procedure from the comfort of their homes at any time of the day.

Final Thoughts

Finally, the manual data entry process is a difficult job because it is time-consuming and takes a lot of capital investment from the company. It lowers productivity because the outcome is usually full of errors and takes multiple revisions to eliminate them. Shufti Pro solutions team saw the challenges and worked on an OCR technology and document scanner backed up by AI and ML algorithms, according to Shahid Hanif. The system is efficient and reliable because it takes only a few seconds to show results with high accuracy levels. On top of all of it, the AI-backed OCR document scanner ensures coverage across the globe for diverse languages. 

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