Do you think this will work? Instead of keeping customers information on the platform why not delete them all after the verification is passed?
Aside from possible law issue, can you trust them to actually delete your data? I've seen enough company lying about their privacy or data practice.
What you speaking about is quite similar to ZKPs
It's not that similar though. With ZKP, the verification happen without knowing the data itself. But OP idea still perform conventional verification, where the people or machine can read the actual data.