Banks are a great use case for TOTP or other 2FA auth methods that aren't SMS, as if you need to verify identity in person, you can require the user come to a physical branch (in the US, you can get something called a "medallion signature guarantee" [1], which is typically required to verify your identity if you're moving more than $250k in assets between financial service firms). Services that can't provide identity verification services in meatspace are at a disadvantage, which is why they fall back to SMS as identity verification and management.
ID cards that support cryptographic functions (such as Estonia's National ID [2], or in the US, DoD CACs [3]) would go a long way to fixing these problems.
[1] https://en.wikipedia.org/wiki/Medallion_signature_guarantee