Founded in 1993 by Joseph Corcoran for the purpose of automated forms processing, ICR technology is the subset technology of OCR. Where OCR focuses upon the recognition of printed characters, ICR technology concentrates upon the recognition of handwritten text. This allows the identification of text of different handwriting and fonts to be intelligently interpreted and analyzed.
Further distinction between the two has been made below:
Difference Between ICR and OCR
1- OCR systems are template-based and lack artificial intelligence neural networks, which sets them apart from ICR. Template-based OCR follows fixed formats for data entry, whereas cognitive data capture solutions, like ICR, learn to recognize diverse formats. This adaptability makes ICR more suitable for companies with frequently changing invoice structures.
2- OCR software entails project administration fees, while ICR operates fully automated, eliminating extra costs
3- OCR-based systems often require manual intervention and review, whereas ICR only flags anomalies and prompts user checks when necessary, minimizing manual efforts.
4- Creating templates is a necessity for OCR, whereas ICR technology does not rely on templates, streamlining the implementation process.
5- Moreover, OCR files are less searchable in enterprise databases as they convert documents into PDFs once, while ICR scanners store read information, enabling convenient data retrieval.
How Does ICR Work?
An ICR software is used to input a handwritten document. The ICR software scans the document and extracts the data from the document. The following steps may help to understand the working of ICR technology.
For example for a bank:
1- A user displays their ID card for it to be scanned. The ICR technology will scan the document to extract the information such as name, date of birth, address etc.
2- A handwritten note of consent will also be scanned and extracted.
3- Extracted information will be verified and will be sent to the bank.
By making use of ICR services, it removes the time-consuming and tiring task of data entry, saving time and the cost of hiring an employee for the purpose of data entry.
Benefits of ICR Technology
Intelligent Character Recognition (ICR) technology offers a wide array of benefits that significantly transform various aspects of business operations. Firstly, by automating the recognition of handwritten text, ICR eliminates manual data entry processes, saving valuable time and resources while reducing the risk of human errors. This streamlining of operations not only enhances productivity but also leads to greater customer satisfaction, as information can be processed swiftly and accurately, resulting in quicker response times and improved service delivery.
Moreover, businesses adopting ICR technology experience better governance and compliance as data extraction becomes more standardized and consistent, ensuring adherence to regulatory requirements. The accuracy of information obtained through ICR is another key advantage, as it promotes reliable decision-making and data-driven strategies.
With its unparalleled attention to detail, ICR can effectively capture even subtle nuances in handwritten content, unlocking previously untapped insights and potential opportunities for growth.
Application of ICR technology
ICR technology finds diverse applications across various industries. Banks, NBFCs, and financial institutions benefit from ICR’s efficient reading of customer data, processing loan applications, checks, forms, and surveys digitally. In schools and educational organizations, ICR is utilized to read handwritten notes, simplifying grading processes. Online businesses and ecommerce stores rely on ICR to collect electronic signatures for seamless KYC documentation, while property managers employ it for verifying ownership and e-verifying rental agreements.
Insurance companies comply with digitization requirements and enhance transparency in claims filing using ICR. Meanwhile, the hospitality and logistics sectors streamline their operations by scanning receipts, invoices, shipping documents, and address proofs with ICR. The versatility of ICR technology revolutionizes information management and streamlines processes across industries.
ICR technology is a valuable and efficient data entry solution, allowing businesses to capture large amounts of information quickly and accurately. The ability to convert written text into digital representations makes it easy for users to store, manipulate, analyze, and retrieve their data with ease. As ICR technology continues to advance, its potential to drive productivity, improve customer satisfaction, and promote better decision-making will undoubtedly shape the future of information management in an increasingly digital world.