Author:
Mr. Nagesh B. Mapari, Pragati S. Dhule , Rajendra G. Ingle , Punam R. Sardar, Saurabh R. WankhadePublished in
Journal of Science Technology and Research( Volume 6, Issue 1 )
Abstract
Know Your Customer (KYC) is a crucial process used to verify the identity of users and assess potential risks of illicit activities in business relationships. Traditional manual KYC methods are time-consuming, costly, and prone to security vulnerabilities. To address these issues, this paper proposes a KYC verification system using the MERN stack (MongoDB, Express.js, React.js, Node.js), offering a seamless and secure authentication experience.
The system enables users to register and verify their identity through a multi-step process involving email and mobile OTP verification, document uploads (such as Aadhar, PAN, Passport, or Driving License), and live selfie capture. Backend security is enforced through Bcrypt for password hashing, JWT for secure session management, and OTP validation using services like Twilio or email.
Compared to traditional KYC processes, this system reduces human intervention, improves data integrity, and accelerates the onboarding of users in digital platforms. The proposed architecture also enables integration with blockchain for data compression, immutability, and faster retrieval. Experiments reveal a 20% reduction in storage size and improved response times in data retrieval.
This MERN-based KYC system proves effective for use in banking, fintech, and any digital platform requiring user verification. The study highlights its performance, scalability, and superiority over manual processes in terms of both user experience and operational efficiency
Introduction
In today’s digital world, secure and efficient digital identity verification is essential, especially in banking, fintech, and similar sectors. As services move online, Know Your Customer (KYC) processes become critical for confirming user identities and preventing fraud.
Manual KYC methods are slow, repetitive, and prone to errors. They are also costly and difficult to manage, especially when users hold multiple accounts or need to update their information frequently.
This paper presents a modern KYC verification system using the MERN stack. The system enables users to register and verify their identity using OTPs, document uploads, and live selfie capture. It uses email and mobile OTPs for initial verification. Users can upload documents such as Aadhar, PAN, Passport, or Driving License. For added security, the system uses Bcrypt for password encryption and JWT for session management. OTPs are sent through Twilio or email services.
Unlike traditional KYC, this system offers real-time processing and reduced costs. It also improves data integrity and minimizes human errors. The system is scalable and integrates with blockchain to ensure fast data retrieval and immutability.
Tests show a 20% reduction in storage size and faster response times. These results prove that the system improves onboarding speed, accuracy, and user experience. It is suitable for banks, financial apps, and any organization requiring secure digital verification.