Earlier quoted context omitted.
The problem is completely the opposite. The flaw is the existence of social security numbers. Prohibit them from being used for anything but social security. Then there is no "your social security number" or "your identity" for someone to open a bank account against. You open a bank account and they give you a bank card and you set an address and phone number. The day you open it, they shouldn't need to know who you…
I stand by your SSN only for social security point. But the rest sounds plain wrong to me. Your phone might get stolen, your name might change due to marriage, your address might change because you moved/got evicted. What now?
If someone steals your phone and password and bank card and ability to receive mail at your home address all at once then you're pretty screwed, but you're pretty screwed then regardless, right? That's the level of screwed where somebody else can also get a government ID in your name.