I do believe banks should improve but ultimately I do see knowledgeable people relying on decentralized banking (blockchain technology), nevertheless there presence is still needed in some areas.
According to your KYC problem, as an accountant in study I can tell they are using a legacy system of storing data known as flat file , I think they should upgrade to Database and Rea model using ERP, with that all being said, you covered this all up, thanks for sharing .