I mean that could still be encrypted. But passwords should never be reversible. It should be hashed with scrypt or apparently now Argon2id.
If the data can be read by so many people in the company that even the customer service people have access, it's functionally not encrypted.
> provably storing peoples' online banking logins in plaintext in some ancient mainframe database system
Is not about functional encryption but storing directly as plain text.
I agree that it any system that allows this IS almost certainly just storing as plain text, and that it’s bad regardless.