I'm confused, are they asking for something you know or for something have? At the moment it sounds like just 1 factor, just something you know.
CW-88 explained it best, quote below:
Probably password then the next step is asking for three letters from an answer you have already provided them
Give letter 1, 3, 5 of your secret answer
That is prob for online banking though.
I think banks need to up their game. The likes of Steam and Blizzard are providing better login security but I guess no bank has had their online security breached as bad as both these outlets.