With passwords, no account was even lost in the scenario for a recovery flow to start. An account recovery flow is only necessary because of the superfluous extra security, which will almost inevitably introduce more attack vectors than before (such as a social engineering attack through customer service) if the banks want to service customers like grandmas.

> With passwords, no account was even lost in the scenario for a recovery flow to start

Given how common mandatory SMS 2FA is for banks, if thieves stole your unlocked phone, they have stolen your account too.