I had to deal with this for government apps specifically related to immigration. I don't mind banks requiring it, I don't have to use that bank. I do mind governments requiring it if my only recourse is having to leave the country entirely.
What if all banks require it?
1: https://www.belastingdienst.nl/wps/wcm/connect/nl/intermedia...
Companies can choose what product to offer and what customers to serve. I can choose what products I'm willing to spend my money and time on.
My problem is when I am compelled to use something despite my opposition to it, such as the immigration app I mentioned being force to use under threat of being kicked out of the country.