What is OCR and why it is important for document scanning?What is MRZ Extraction?How does OCR and MRZ Extraction Work?5 Key Benefits of OCR and MRZ in Document ScanningKey OCR and MRZ FeaturesWhy ScanDoc?
Document Scanning Software: OCR and MRZ Extraction
Dec 20, 2024
Document scanning software utilizes OCR and MRZ methods to extract information from the documents. Automation of document scanning eliminates manual data entry, reduces waiting times, and avoids data errors.
Find out what OCR and MRZ technologies are and why they are crucial parts of document scanning solutions. Get a better understanding of OCR and MRZ extraction.
Lastly, explore how OCR’s key benefits and features can transform your business.
What is OCR and why it is important for document scanning?
Optical Character Recognition (OCR) converts text from images into readable, editable text. It extracts important information like full name, addresse, expiration date, and birth date from documents.
With the addition of Machine-Readable Zone (MRZ) extraction, the process becomes even more accurate by validating the data. The extracted information can then be transferred to other systems using APIs, making integration straightforward and efficient.
One of the key benefits of OCR is that it removes the need for manual data entry, which can be slow and error-prone. Automating this process saves time, especially when processing large numbers of documents.
OCR is particularly useful in reducing waiting times for customers and easing the workload on employees. A common use case is hotel check-ins, where OCR speeds up both online and reception-based registration, improving the experience for everyone involved.
ID Scanning OCR
What is MRZ Extraction?
The Machine-Readable Zone (MRZ) is a unified and globally recognized format structure on identity documents. It consists of three lines of alphanumeric characters at the bottom of the document. MRZ is usually a standard element of passports, IDs, and driving licenses.
MRZ data typically consists of these elements:
Character code indicating document type
The country or organization issuing the document
Unique document number in an alphanumeric string
Nationality of a document holder
Holder’s first name and surname
Date of birth in a six-digit format
A single character representing gender
OCR extracts alphanumeric characters from the MRZ on identity documents. MRZ technology is an essential element of ID scanning solutions. Software such as ScanDoc scans documents by comparing OCR and MRZ elements and extracts data to any system using APIs.
The data extraction process has use cases in hospitality, finance, travel, and other industries.
For instance, it’s a crucial element of digital customer onboarding for financial institutions ensuring the smooth and accurate opening of online accounts.
OCR and MRZ Extraction
How does OCR and MRZ Extraction Work?
In this part of the article, we’ll review the document data extraction process, including MRZ extraction. When the OCR is implemented in your business, it’s easy to validate IDs in five simple steps.
Step 1: Firstly, a customer or an employee takes or uploads a photo of the ID document. The photo needs to be taken ensuring the entire document is visible and adjusted to fit the frame. Alternatively, photos can be uploaded in multiple formats such as PDF, PNG, JPG, and other formats.
Step 2: OCR accurately identifies a specific document template and its data. In the process, it compares over 350 document types.
Step 3: In this step, ScanDoc document scanning software automatically extracts all the personal information from the ID. Extracted data includes name, address, date of birth, ID number, etc.
Step 4: To ensure data accuracy, ScanDoc cross-checks extracted data using Optical Character Recognition (OCR) and Machine-Readable Zone (MRZ) technologies.
Step 5: As a last step you’ll get a data output with 99% accuracy.
5 Key Benefits of OCR and MRZ in Document Scanning
OCR improves customer experience, facilitates workflow automation, opens your business to international markets, and much more. Read what are the other ways OCR extraction will transform your business operations.
1. Improved Customer Experience
The OCR extraction takes about 1.5 seconds. It’s a simple process, even for less technically advanced employees and customers.
Using ScanDoc documents scanning solution significantly reduces waiting times for customers. Plus, it eliminates any need for manual data entry for employees.
Employees’ satisfaction gets improved, too. They don’t have to do repetitive tasks of writing ID data into the system. Instead, they can focus on providing better customer service to clients.
2. Workflow Automation
OCR solutions like ScanDoc are implemented into different applications and systems.
Developers can easily integrate OCR through APIs and SDKs. ScanDoc provides clear documentation, sample code, and support to developers creating tailored solutions.
For instance, in the hospitality industry, hotels are optimizing their workflow automation with our solution. ScanDoc extracts and transfers the guest’s ID data directly into a hotel property management system (PMS). There’s no need for manually copying the data, the whole workflow is automated.
3. Scalability for High-Volume Scenarios
ScanDoc OCR can process a large number of IDs in a short time with 99% accuracy. Imagine working at the event and needing to manually check and record each member of the event staff.
In a scenario with hundreds of staff members, it’s crucial to spot any unauthorized personnel.
Similarly, in the case of hotel reception check-in, it’s important to quickly process guests. ScanDoc allows your reception staff to move fast, eliminating any overcrowding or delays.
4. Remote Digital Customer Onboarding
OCR extraction works with ID documents from international customers.
ScanDoc supports over 350 documents globally. It’s compatible with multiple languages and alphabets. With the combination of document scanning and face recognition, you can provide safe digital customer onboarding.
Onboard customers regardless of their time zone with 24/7 accessibility without the need for human intervention.
5. Digitizing ID Records
Using OCR is an eco-friendly solution.
ID paper copies are replaced by searchable digital files. There’s no need for physical storage allowing you to save space.
Additionally, all the digital files can be secured with a backup. ScanDoc facilitates your digital transformation. Electronically stored ID records are easy to integrate into digital workflows.
Key OCR and MRZ Features
ScanDoc OCR can have cloud or on-prem hosting. Cloud hosting is a convenient option for smaller and medium-sized businesses without extensive in-house IT support. It’s also a more affordable option, considering there’s no installation and configuration costs.
On the other hand, larger companies and corporations with in-house IT teams can opt for on-prem hosting. On-prem hosting ensures control, ownership, and compliance for enterprises in highly regulated industries such as healthcare or finance.
Due to Open APIs, Web, Android, and iOS SDKs implementing OCR substantially reduces development time. ScanDoc is easy to integrate.
It’s already tested, and with clear documentation, developers save time on code fixes. Plus, there are automatic updates on new features. You can speed up development time for new apps or improve existing apps by adding OCR extraction.
Overall, additional functionalities can positively influence user experience.
As mentioned before, ScanDoc uses multiple technologies for cross-validating data – OCR and MRZ. Additionally, ScanDoc has an AI-powered solution – face recognition.
Face recognition adds another layer of security to the identity verification process. Using AI active and passive liveness detection it ensures that there’s a real human from the ID on the other side of the screen.
Why ScanDoc?
ScanDoc provides a set of ID scanning solutions applicable to different industries.
Whether you need a document scan, a credit card scan, or a face recognition solution, we have you covered. All the solutions are easy to implement in existing apps or systems. It’s important to note ScanDoc doesn’t store any data, it simply provides solutions that can be customized for your business needs.
It’s convenient for events, guest check-in, or other high-volume ID processing onsite scenarios.
Manual data entry can take time, resulting in waiting lines and dissatisfied customers. Long waiting lines, working under pressure, and having international customers with complicated names all add up to data inaccuracies. However, with ScanDoc's document scanning solution, there’s less of a need for manual data entry. In this article, we’ll introduce the key benefits of automated ID and passport data extraction for businesses. Read on to learn how the benefits of automated data extraction can transform your daily operations. [caption id="attachment_2521" align="aligncenter" width="810"] Data Extraction Example[/caption] What are the Benefits of Automated ID and Passport Data Extraction? We’ve summarized the most important benefits of automated data extraction for your business. Some of the benefits include a faster digital customer onboarding process, reduced paperwork, and lower employee training costs. Find out the rest of the advantages of automated data extraction below. Faster Digital Customer Onboarding Process One of the advantages of data extraction is a faster customer onboarding process. ScanDoc ID scanning solution accurately extracts information from the document in 1.5 seconds. In the case of a hotel, reception check-in, or providing bank services, you’ll be able to process more customers and reduce waiting lines. As a result, you’ll significantly improve customer service. Similarly, with online hotel check-in and requesting bank services, customers can complete the data extraction process by scanning their IDs using a camera on any device. Implementing data extraction to your hospitality, financial, or other business offers your customers flexibility. For instance, 76% of people in an Opinion Research Corporation (ORC) study expressed that checking in ahead of time would minimize their potential frustration. Additionally, 41% of respondents answered they would rather choose a hotel with an online web or mobile check-in option. Reduced Paperwork The advantages of data extraction for employees include reduced paperwork. With less paperwork, your business can turn towards a more digital workplace while saving the environment and providing better service. ScanDoc supports various document types including PDF, JPEG, PNG, and TIFF. You can simply upload images or PDFs of IDs and passports from your computer. ScanDoc will extract data the same way as it would with directly scanning IDs and passports. Your employees won’t have to manually enter the data which will reduce their workload, too. Lower Employee Training Costs The manual ID verification process usually requires extensive employee training. If your company is using a more complex CRM or other industry system, it may take more time and financial resources to train your employees. On the other hand, one of the benefits of automated data extraction solutions is lowering employee training costs. ScanDoc is user-friendly, quick to learn, and convenient to use in daily operations. Seamless Integration to Existing Systems If your business is already using a CRM, specific industry system, or application, it’s important to explore business data extraction solutions that easily integrate into existing systems. ScanDoc can be seamlessly integrated into any system using Open API, IOS, and Android SDKs. On top of that, ScanDoc is already widely integrated into hotel property management systems, financial institutions, airlines, etc. When it comes to implementing a data extraction solution, you can either installScanDoc on-prem or run it in the cloud. Corporations and enterprises with extensive IT teams and more resources might opt for on-prem information storage. However, smaller and medium-sized businesses usually go for cloud storage. Whichever option you see fit, ScanDoc can accommodate your business needs. Multilingual Capabilities In case your business operates in different markets, or you have customers from all over the world, you should still be able to accurately capture their data. Manually recording the data might present difficulty for your employees. With ScanDoc's ability to extract data from IDs and passports in multiple languages, you can smoothly operate your global business. Improved Data Quality Along with the mentioned automated data extraction benefits, ScanDoc captures clean and structured data. Automated data extraction minimizes issues with data consistency and completeness. When ScanDoc is successfully implemented into existing systems such as hotel property management systems, it transfers the data into the system without any need for manual labor. Fraud Detection From 2017 to 2023 the fraud detection and prevention (FDP) market doubled its worth (Statista). There are numerous solutions dedicated topreventing online identity theft and other advanced fraud tactics. ScanDoc business data extraction solution ensures data accuracy. ID scanning technology functions using optical character recognition (OCR) and machine-readable zones (MRZ) for data extraction. Both technologies are key to detecting false IDs. While OCR reads and extracts alphanumeric characters from ID documents, MRZ ensures two lines of alphanumeric characters at the bottom of the identification document are accurate. Along with these advanced business data extraction technologies, you can add another layer of protection with face recognition technology. For example, financial institutions implement online ID scanning face recognition for opening bank accounts and loan applications. Face recognition authenticates individuals based on their distinct facial features. Moreover,ScanDoc also uses liveness detection in face recognition. Liveness distinguishes fraudsters using photos, masks, or deepfakes to impersonate their victims. Scalability The number of your customers can drastically change between seasons. Also, your business can experience sudden growth. In both cases, you can avoid hiring additional staff. The advantages of automated data extraction include scaling your business without unnecessary costs. Automated ID data extraction can process higher volumes of customers while saving your resources. 24/7 Availability As you may operate in a global market, your customers reside in different time zones. Additionally, customer support services might only be available during regular working hours. With many customers having to work their 9 to 5 jobs, they might find it difficult to adjust their schedules. An automated business extraction data solution can operate round-the-clock without human intervention. It provides flexibility to your clients to choose the most convenient time for their ID scanning process. Supports Remote Operations Automated data extraction has various business use cases. As mentioned before, it can be utilized for online hotel check-in or for requesting services in the finance sector combined withface recognition. However, it’s widely used in fully remote operating businesses. For instance, ScanDoc identity verification is convenient for platforms for independent freelancers and contractors or for applications for pairing individuals to share assets. There’s no need for an in-person contact to carry out an ID verification. [caption id="attachment_2532" align="aligncenter" width="810"] Simple API[/caption] Document Data Extraction ScanDoc Other Business Advantages of Automated ID and Passport Data Extraction Time Efficiency Reducing Workload Improving Customer Experience Cost Savings Easy to Use Reliability and Accuracy Organized Information Storage Data Security and Safety Competitive Advantage Business Growth Learn more about the advantages of automated data extraction for your business here. Considering Automated Data Extraction Solution for Your Business? Regardless of your industry, ScanDoc data extraction solutions can easily be integrated into your business. You can install it on-prem or it can function in the cloud. It also can be used on any type of device with a camera. Moreover, since it’s easy to use, your employees won’t need any additional training. Interested in how your business can start using ScanDoc data extraction software in daily operations? Contact us to find out more information on ScanDoc’s use cases, integration process, and pricing list.
Considering replacing manual data extraction with a more time-effective, safe, and accurate document scanning solution? Implementing a data extraction solution can be challenging. With so many options on the market and features to explore, it can be difficult to understand which solution is the most compatible for your business. Read our step-by-step guide to implementing ScanDoc’s document data extraction solutions. We’ll guide you through the process from identifying your company needs, and integration possibilities to choosing types of devices. Step 1: Identify Needs for Data Extraction Solution The first step to implementing a data extraction solution is to identify your business needs. Evaluate if you will conduct data extraction online or in person. For instance, many hotels have both hotel reception and online check-in. Applying both methods provides more flexibility to guests, especially if they’re unsure of their arrival time. Secondly, you might need more than data extraction. It’s possible to combine ID document data extraction with face recognition. Financial institutions usually have an online verification process in place for opening a bank account remotely without visiting a bank, requesting a credit card, or applying for a loan. Face recognition plays a key role in preventing fraud and identity theft. After scanning their IDs using a mobile phone, customers take a selfie for face recognition. The system compares customers’ selfies with their ID photos. An additional layer of safety such as active and passive liveness detection ensures a living person is applying. Step 2: Allocate a Budget After you’ve identified your organization's data extraction needs, it’s time to define a budget. Most data extraction solutions charge per scanned ID document. In that case, you should count how many customers every month you have. A lot of data extraction systems offer different pricing options. If you have multiple objects where you need to scan IDs, there’s sometimes an option to pay per location (chain of hotels, banks, etc). Step 3: Consider Document Scanning Integration As an established business, you probably have industry software in place. If you’re planning to add a data extraction solution, it’s a priority to consider how it would integrate into the existing system. Implementing data extraction into mobile apps, desktop applications, or web-based platforms can be easy. Developers can simply integrate ScanDoc data extraction solution due to its Open API, and both iOS and Android SDKs. For instance, ScanDoc is already widely integrated into hotel property management systems, financial institutions, airlines, etc. Additionally, when it comes to processing ID documents using the image upload option, explore data extraction solutions supporting multiple formats. Customers often have their ID already ready to upload from their devices in different formats. ScanDoc supports various documentation including PDF, JPEG, PNG, and TIFF. In that case, customers won’t have to waste their time changing the format or retaking the photo of their ID. It's also important to understand how and if you want to store your data. ScanDoc can be installed on-prem or function in the cloud. For enterprises with IT team support, it might be more convenient to go for on-prem information storage. On the other hand, smaller and medium-sized companies find cloud storage is more affordable. Nonetheless, ScanDoc functions both ways. Step 4: Choose the Type of Device It’s possible to implement a data extraction solution to devices you’re already using in your daily business operations – phone, laptop, or tablet. However, many businesses choose to use an ID scanner. Even though you already have devices you can use, it’s more convenient to use a scanner due to its mobility. While you can carry around a phone or a tablet, they’re multipurpose devices with other apps and distractions on them. Additionally, laptops and tablets have lower quality cameras making it a bit harder to scan an ID on the spot. Regardless of the type of device you choose, ScanDoc can connect to any device with a camera. Step 5: Explore Data Extraction Software Options Considering there are different ID data extraction solutions on the market, it’s good to explore and compare their key features. Understand what the most important ones for your business are. Some of the most common data extraction features include: Fast time of data extraction Great user experience for employees and customers Effortless integration across any device Possibility of implementation to existing systems Accurate data extraction regardless of the document’s language and alphabet Data encryption ensures 100% security Along with software features, examine numerous benefits of data extraction solutions to your business. Implementing data extraction software is time efficient, reduces workload, improves customer service, saves you money, and more. Step 6: Try Data Extraction Software After reading through the ID data extraction guide, there’s one last step left. As with most of the tech solutions, it’s extremely important to see them in action before a long-term commitment. When you choose data extraction software and go through integration, it’s going to be more difficult to switch to other options down the line. It’s even more true if you have a chain of hotels and banks with multiple devices using the same data extraction software. Try out ScanDoc yourself in a few easy steps to see how it works. Take your phone and scan your ID to see how quickly and accurately your data is extracted. Additionally, you can test digital customer onboarding, credit card scan or document image upload. Other than trying out ScanDoc, you can always contact us for a demo or to answer questions you might have. [caption id="attachment_2521" align="aligncenter" width="810"] Data Extraction Example[/caption] Implementing Document Data Extraction to Your Organization? ScanDoc data extraction solution has use cases across industries, including hospitality and finances. It’s extremely easy to use. Your employees won’t require any additional training to learn how to scan IDs. Moreover, ScanDoc works on different devices and can be integrated into existing systems. It reduces waiting times, allowing you to process more customers and reduce your costs. ScanDoc is an ideal replacement for manual data entry. It’s fast and accurately extracts data from IDs in various languages and alphabets. With ScanDoc you’re gaining an additional layer of safety to your business. Data encryption ensures all the personal data is hidden. Even in the case of unauthorized access, data will be unreadable. Want to know more about how your organization can benefit from ScanDoc data extraction software? Contact us to understand ScanDoc’s user cases, integration process, and pricing list.
Data extraction can be done on databases, websites, APIs, PDFs, documents, and social media platforms. For the purpose of this article, we’ll focus solely on the extraction of ID document data. We’ll help you understand what data extraction is, how it works, and what to consider when choosing data extraction tools. Use this article as an ID data extraction software guide to select the best data extraction software for your business. What is Document Data Extraction? Document data extraction is the process of obtaining and transforming information into a structured format for further analysis or integration into the system. When it comes to ID document data extraction, the process involves capturing data such as name, date of birth, document number, address, and other personal information. Data extraction solutions automate the process and replace manual data entry from ID documents. They’re especially useful in finance and hospitality for accurately processing large numbers of customers. Manual vs. Automated ID Data Extraction Manual ID data extraction takes more time than scanning. Advanced scanning solutions like ScanDoc take only 1.5 seconds to scan and extract information from the document. Moreover, manual data extraction is prone to human error. In case there’s a line of customers, it’s more likely to misspell a name or type in the wrong ID number. Plus, it’s difficult to spot fraudulent ID documents. Manufactured or manipulated IDs can look real to the naked eye. ID scanning is a powerful tool for preventing fraud and identity theft. [caption id="attachment_2521" align="aligncenter" width="810"] Data Extraction Example[/caption] How Does Data Extraction Software Work? The first step is to scan an ID card or a passport using a mobile phone, tablet, laptop, or desktop camera. ScanDoc’s ID and passport scanning solution can easily be implemented into any device. Whether your company is using mobile phones, ID scanners, or tablets, you’ll always get accurate results. ScanDoc’s data extraction solution uses optical character technology (OCR) to extract alphanumeric characters from ID documents. Moreover, it utilizes machine-readable zones (MRZ). MRZ are two lines of alphanumeric characters at the bottom of the identification document. ScanDoc captures the MRZ, OCR, and barcode to ensure the ID document contains all the necessary elements. Additionally, due to its open APIs, ScanDoc can be easily integrated into any system. For instance, in the hospitality industry, hotels need to record guest information when checking in. ScanDoc is a convenient solution to automate the checking-in process by integrating with PMS (property management system). It eliminates manually entering guest’s ID information. [caption id="attachment_2532" align="aligncenter" width="810"] Simple API[/caption] 7 Things to Consider When Choosing Data Extraction Tools The global data extraction market is projected to reach $4.90 billion by 2027, growing 11.8% from 2020 to 2027 (Allied Market Research). With the growth of the global data extraction market, there is a rise in the number of solutions to choose from. It’s important to examine features before choosing data extraction tools. Find out what features to consider in the best data extraction software for your business. Accuracy Compared to manual data extraction, automated ID data extraction solutions offer a higher level of accuracy. ScanDoc’s ID and passport scanning process documents with 99% accuracy. Moreover, it captures data from over 500 documents worldwide. It ensures data is accurately extracted in other languages besides English. ScanDoc is currently available in Arabic, Spanish, Portuguese, and more widely spoken languages. Speed and Efficiency When you need to process many clients in a short amount of time, it’s important to consider the speed and efficiency of an ID data extraction solution. ScanDoc’s data extraction software takes about 1.5 seconds to process per customer. It substantially decreases the waiting time for customers. Consequently, shorter waiting times improve your customer experience. Flexibility While some solutions are tied to a specific device, others have the flexibility of integration to any device. ScanDoc is easy to implement due to its open APIs, and iOS and Android SDKs. Add ID scanning to existing mobile apps, desktop applications, or web-based platforms. Easily integrate ScanDoc into your hotel or financial systems. ScanDoc also offers flexibility with documentation types. It supports PDF, JPEG, PNG, and TIFF. Security and Compliance Protecting customers’ private data should always be a priority. ID scanning captures customer’s private data. Without sufficient security measures, customer’s ID data can be used for fraud and identity theft. ScanDoc ensures that all sensitive information extracted from IDs and passports remains hidden from unauthorized access or potential breaches. To further protect the privacy of your customers, ScanDoc doesn’t store photos and information from scanned documents. User-Friendly Companies in 2023 spent over $900 per employee for training. Additional training due to the implementation of new technologies can result in substantial costs. Companies can save money using more user-friendly data extraction software. ScanDoc’s ID and passport scanning solution is intuitive, straightforward, and doesn’t require additional training. Scalability With business growth, there’s an increase in customers. ScanDoc can handle larger volumes of ID data extractions. It ensures stable business growth without additional investments. Also, ScanDoc can be installed on-prem or function in the cloud. If you’re an enterprise with IT team support, you might prefer on-prem information storage. However, in case you’re a small or medium business owner, cloud storage is a more affordable and flexible solution. Whichever option you choose, ScanDoc can provide both. Use Cases Explore if an ID data extraction software is already used in your industry. ScanDoc ID and passport scann have wide use cases. It’s utilized in numerous hotels in online and reception hotel check-in. Moreover, it can be combined with face recognition and liveness detection in the finance sector online verification. ScanDoc is also used for online customer onboarding, including platforms for independent freelancers and contractors and applications for pairing individuals to share assets. Ready to Choose the Best Data Extraction Software? Eliminate errors and extract ID data with ScanDoc’s ID and passport scanning solution. Scan IDs in 1.5 seconds to decrease waiting lines and improve customer experience. Moreover, reduces the burden of manual work for your employees. With less burden on your employees, you’ll be able to cut labor costs and invest your resources in growing your business. Explore other benefits of using ID scanning technology in your business. Try it out or contact us for more information.
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