Earlier quoted context omitted.
I think something was lost in the retelling. It could just be an era when people didn't figure out biometrics yet. It makes sense today, but caught up in new hype, people often implement cutting edge technology where it doesn't belong.
“Your voice is your password” kind of systems are still around.
Often you need one type for basic access (see balance), two for an actual transfer, three for say, transferring a million dollars. This may be something that people like Mitnick proved were necessary.