Even with passwords, you'd still need an application or a device for 2FA, unless you keep a pack of scratch cards with you everywhere. So unless you go out of the way to avoid 2FA or use scratch cards, I don't think this change anything from the status quo, only now you have one less thing to remember.
If most people use their phone for login that's fine. Many people don't even have another device.
What we should push for is passkey export, migration and backup features. The most likely lever that big tech could use for lock-in is making it near impossible to move those passkeys out of their closed ecosystems.
I do remind you that all money transactions are done electronically. You’d have us go back to checks?
I would dismantle big tech first. The banking systems would still exist. But I don't think cheques were too bad.