Document Parsing Tools : What You Should Know

Individuals and businesses no longer rely on manual ways to collect data crucial for their business in 2024.
And the rise of Document Parsing Tools has played an important role in automating entire workflows increasing efficiency and accuracy.
With such tools, people will not just save time & resources but also be capable of making well-informed decisions.

So if you are starting your journey in the world of data extraction and analysis here is everything you need to know about document parsing tools.

Facts you can’t miss!
No matter how good people are at their work, a document parser will increase their productivity and efficiency.

So you can work smarter, not harder.

Teams in every industry use such tools in their unique ways. But it’s essential to do research on the individual tools before going for one.
Intelligent document parsing market size is set to reach USD 122 billion by 2035, growing at a CAGR of 40.50%.

With AI in the mix of things, intelligent document parsing tools like SelfServe by PowerCred have come up; which not only extracts data but also interprets it according to the industry

Pro Tip : Try going for Document Parsing Tools that give customisable o/p’s and a free trial period.

How does a document parser work?

As we talked about in our last article, document parsers use optical character recognition to analyze documents
If you haven’t read it yet. You can do so here.

In simple words, the parser divides the documents into different sections like tables, headings, and paragraphs. Then identifies patterns that are relevant to most people.

Now Parsing could be done in 2 major ways

1. Rule Based parsing
2. Learning-based parsing

Rule-based parsing: These tools use predefined rules to recognize specific patterns in text. Suitable for structured documents like invoices and money orders. Here the user has to define a template that the parser uses as a reference to extract data.

Learning-based parsing: Tools that utilise AI along with predefined rules and models to identify complex patterns. Here the user has to train the tool using numerous unstructured documents and prepare the tool for extracting that specific data.

Now to go even further Intelligent Document parsers like SelfServe are now document agnostic and capable of checking for tampers and fraud within the uploaded doc.
All this with zero training time required.

Now that you have a fair bit of idea about Document Parsing tools, let us see how they are being utilized.

If you also want to know how an Intelligent Document Parsing tool can help your business, read our last article.

Document Parsing in Action

Individuals and companies generally use document parsing wherever they want to efficiently capture, evaluate and understand large volumes of data from documents.

Here are some classic use cases with industry relevance:

Financial services

Banks and other financial institutions generate data and profile their customers using invoices, bank statements and other transactional documents.
For them to a document parser is primarily to extract and sort financial information like balance, no of monthly emis, transactional details and more.

Benefits

1. Decision Making:
   Document parsers enable credit officers to make faster and well-founded decisions.

2. Risk reduction:
   With customisable and accurate data, banks can profile their customers better and reduce risks of fraud. Document parsers even further lower the risks associated with human error

Healthcare

In healthcare, private hospitals and public healthcare facilities generate large amounts of patient data every day. Most of this data can be used to provide a specific service to the patient.
With document parsing tools, Hospitals can now self assess the financials of a patient and provide them with immediate support, instead of waiting for confirmation from insurance providers.

Benefits

1. Improved patient care:
   Doctors have immediate access to consistent, complete patient data, leading to faster and seamless checkups.

2. Efficiency improvement:
   Automated processing of patient data reduces the workload and the over-dependency of the hospital with insurance providers.

Insurance
Insurance companies utilize document parsing to analyze daily damage reports, comprising photos, damage reports, and policy documents. This process extracts crucial details like the cause, amount, and time of the incident from diverse formats.

Benefits

1. Fast payouts:
   Automated claims processing would enable insurance companies to process faster thus speeding up payouts to policyholders

2. Customer Satisfaction:
   Fast and efficient claims settlement leads to greater customer satisfaction and strengthens the reputation of the company

Parting Shot

Document parsing is like what the calculator was for an accountant when it was first invented. Aimed to optimize operations, enhance data accuracy, and achieve efficiency at scale.
In the modern business scenario, which mainly depends on speed and accuracy, individuals and businesses alike need to understand the importance of using a document parsing tool in their everyday practice.

It’s time to start your document digitization journey.

We are ready, Are you?

Digitize all your documents and turn them into useful data with SelfServe.

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