That's a big pain point for the average user
EU banks are hit and miss, but e.g. LHV and Wise both work fine. (Wise might limit some functions if it detects root, but custom ROMs seem to be okay. It also has most of the functions available in the web version anyway.) N26 is flaky (sometimes it just works for me, sometimes refuses to even log in; no idea what’s wrong). Revolut has lost me as a user.
Smart-ID (used in Estonia) has been working fine for me, but they seem to limit biometric signup on custom ROMs. But you can sign up using ID card and a USB reader, so it’s only mildly inconvenient.
Now, of course, YMMV in other countries, but I think my final point still stands: we can fight it.
I just also like to be a realist, and right now things look a bit grim