This is true for apple pay but not in the banking apps, if FaceID fails in the banking app it asks to reauthenticate yourself with your mobile bank app credentials.
Same for my European bank. It’s annoying enough that I quit the app and reopen it to try FaceID again. I don’t even know my bank password
It falls back on the passcode any time it can't match a face within three or so tries.
It is for this reason that I do not have any financial website, email, or Keepass database passwords in iOS/macOS keychain.
It is trivial to access all of someone’s passwords in keychain if you know their iOS passcode.