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Document AI / OCRFintech & Document Automation

Hybrid Document Extraction (VLM + OCR)

We developed our own document-extraction technique that reads real-world documents (a crumpled receipt on a counter, a handwritten bank cheque, a photographed invoice) and returns clean, structured data with every value tied back to where it appeared. It combines an open-source vision-language model with PaddleOCR and computer-vision preprocessing, so it stays accurate on messy inputs and runs fully on open-source models, on your own infrastructure.

Open-source
No third-party OCR / AI API
On-prem
Documents never leave your network
Messy docs
Robust on photos, skew & handwriting
Gallery
The challenge

Problem

Off-the-shelf OCR breaks on real-world documents: skewed photos, crumpled receipts, mixed layouts, handwriting on cheques. And cloud document-AI APIs mean shipping sensitive financial documents off-site. Teams need extraction that is both accurate on messy inputs and private.

The objective

Goal

Extract structured data (line items, totals, dates, payees, account numbers, arbitrary fields) from any document reliably, even messy, photographed or handwritten, without sending a single page to a third-party API.

The approach

AI solution

A hybrid technique. Classical computer vision preprocesses the image (detection, deskew, region proposals); PaddleOCR detects and recognizes text with its precise position and layout; and an open-source vision-language model reads the whole page to understand structure and emit clean output (structured markdown / key-value / line items). Fusing OCR's exact text with the VLM's layout understanding makes it robust where either alone fails. And because every model is open-source, it runs on-prem with no data leaving your network.

How it works

Workflow

  1. 1Ingest a document image (scan, phone photo, or PDF page)
  2. 2Computer-vision preprocessing: detect, deskew and propose regions
  3. 3PaddleOCR detects and recognizes text with its position and layout
  4. 4An open-source VLM reads the page and structures the content
  5. 5Return clean structured data with each value mapped to its source box
Under the hood

Model & AI components

  • PaddleOCR: open-source text detection + recognition
  • Open-source vision-language model (layout & semantic understanding)
  • Classical CV: deskew, region detection, bounding boxes
  • Our fusion step combining OCR text with VLM structure
  • Structured output (markdown / key-value / line items)
Capabilities

Features

  • Handles messy real-world docs: crumpled, photographed, skewed, handwritten
  • Receipts, invoices, cheques and forms → structured data
  • Line items, totals, dates, payees and account numbers extracted
  • Bounding boxes tie every value back to its source region
  • 100% open-source models: fully on-prem, no third-party API
System design

Architecture

A modular pipeline: an image-preprocessing / CV stage, a PaddleOCR text stage, and an open-source VLM understanding stage, fused by our own logic into structured output. Because every model is open-source and self-hosted, the whole pipeline deploys on your own hardware (GPU for throughput or CPU for smaller volumes) with no document ever leaving your environment.

Experience

Frontend & dashboard

Output is structured and auditable: clean markdown / key-value data alongside bounding-box overlays that map each extracted value to exactly where it appeared on the page, so results are easy to verify and correct.

Connected

Integrations

  • PaddleOCR (Paddle)
  • Open-source VLM (self-hosted)
  • OpenCV / computer-vision preprocessing
  • On-prem / self-hosted inference
In production

Deployment

Runs fully on-premise on open-source models (GPU for speed or CPU for lower volumes), so sensitive financial documents never leave your infrastructure. No third-party document-AI API, and no per-page cloud cost.

The build

Tech stack

Vision-language
Open-source VLMSelf-hostedLayout understanding
OCR
PaddleOCRText detectionText recognitionLayout
Computer vision
OpenCVDeskewRegion detectionBounding boxes
Runtime & deploy
PythonOn-prem / self-hostedGPU or CPU
Outcomes

Results

Open-source
No third-party OCR / AI API
On-prem
Documents never leave your network
Messy docs
Robust on photos, skew & handwriting
Every cloud OCR we tried either choked on a crumpled receipt or wanted us to upload our documents somewhere. This reads the messy stuff accurately, boxes every value so we can check it, and never leaves our own servers.
Product Lead · Document automation
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