Possible, but there are still chances that someone who work to these sectors can make a copy of your data with a work of phone's camera. Maybe not your photo ID, but your basic info can still be used to trick you especially to those who want to scam you, or hack your bank accounts.
In all KYC schemes some trust is needed to the employees of identity services. The problem is that if a services store a high-resolution images of its users and their ID documents, if they get leaked much more harm can be done than with basic info or low-resolution ID document copies.
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Not only in employees, trust must also exist on the side of companies that do KYC.
This will certainly have repercussions for the long term, as they keep high-resolution copies of KYC, and all identities are clear.
There have been many incidents of many people's identities being leaked or even sold to other companies that are usually engaged in insurance, hospitality and tourism and such.
Of course, you have already received calls from unknown numbers and offers insurance services, discounts on hotel room reservations and obscure seminars.
The issue of KYC is complex, and there is still no way out for consumers to be completely safe and trust that their identity is not misused.
For those who are quite skeptical and put privacy first, of course there will be no good methods, they will not give real identities casually.